Paladin Energy Ltd · ASX:PDN
Paladin Energy — BMO 29th Global Metals & Mining Conference 2020
23 slides from Paladin Energy's conference presentation, Feb 25, 2020
Slide 1: Paladin Energy Ltd – BMO 29th Global Metals & Mining Conference
PALADIN ENERGY LTD BMO 29th GLOBAL METALS & MINING CONFERENCE 24th-26th February 2020 ASX: PDN
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES JORC MINERAL RESOURCES AND ORE RESERVES This presentation contains summary information about the Company’s activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete or contai
Slide 3: Corporate Profile
CORPORATE PROFILE WHO IS PALADIN? MARKET SNAPSHOT ASX: PDN ASX listed independent uranium company with a Shares on issue 2.027B focus in Africa, Australia and Canada Share price (as at 17 February 2020) A$ 0.09c Market capitalisation A$ 178.5M 14 years of production history across two mines Market c
Slide 4: Meet the New Board and CEO
MEET THE NEW BOARD AND CEO Cliff Lawrenson – Non-Executive Chairman Peter Main – Non-Executive Director Peter Watson – Non-Executive Director Ian Purdy – Chief Executive Officer Mining executive with deep expertise in the Mining and finance professional with Chemical engineer with extensive Highly-r
Slide 5: Langer Heinrich – A First Producer in a Recovered Uranium Market
A FIRST PRODUCER IN A RECOVERED URANIUM MARKET LANGER HEINRICH A low cost, long life uranium mine
Slide 6: Langer Heinrich Mine
LANGER HEINRICH MINE A strategic, tier one mine, historical production capacity 5.2Mlb pa Langer Heinrich is fully permitted and licensed 17-year mine life remaining Our relationships and products are market proven Proven top 10 uranium mine by production when operated1 Replacement cost
Slide 7: Namibia – Premier Global Uranium Jurisdiction
NAMIBIA – PREMIER GLOBAL URANIUM JURISDICTION Namibia is a premier uranium jurisdiction Supplies 5% of the world’s uranium (>15Mlb pa) 40+ years production history Stable government with history of supporting investment Politically/socially supportive Excellent infrastructure: Port R
Slide 8: Prefeasibility Study Highlights
PREFEASIBILITY STUDY HIGHLIGHTS Prefeasibility Study confirms 12-month execution lead time to low risk restart Langer Heinrich Aspirational average life of mine AISC target US$30/lb achievable Capital and Operations start up costs (including asset debottlenecking and efficiency improvements) o
Slide 9: PFS Has Confirmed Rapid Restart Plan
PFS1 HAS CONFIRMED RAPID RESTART PLAN PFS1 confirms Concept Study results of comparatively low initial restart expenditure requirements of ~US$80M for ~5.2Mlb pa production capacity Plant Repair & De- Operations Restart Costs Preservation Costs US$42M US$38M (includes: first fill of reagents, reco
Slide 10: Paladin Identifies Low Cost Expansion Opportunity Beyond 5.2Mlb pa
PALADIN IDENTIFIES LOW COST EXPANSION OPPORTUNITY BEYOND 5.2MLB PA Low Cost US$30M (in addition to the US$80M) for 1.3Mlb capacity expansion 2021 Production Potential Care and Maintenance Expand Potential to recommence Activities production during 2021 if the Production Undergoing full review of Car
Slide 11: World-Wide Product Cost Curve – All Projects
WORLD-WIDE PRODUCT COST CURVE – ALL PROJECTS 80 70 60 Full Production Cost ($US/lb U3O8) 50 40 PFS1 US$33/lb for 5.2Mlb1,2 Langer 30 Concept Study Aspirational Target US$30/lb1 Heinrich PFS1 US$29/lb for 6.5Mlb1,2 AISC Costs 20 10 0 0 100 200 300 400 500 Cumulative Annual Production (Mlbpa) Source:
Slide 12: Other Assets
OTHER ASSETS Exploration across two continents
Slide 13: Kayelekera Mine Sale in Progress
KAYELEKERA MINE SALE IN PROGRESS Paladin (Africa) Ltd, which holds an 85% interest in Kayelekera Mine to be sold to Lotus Resources Ltd Consideration for the sale: A$5M A$200,000 cash A$4.8M in shares (A$1.8M on completion subject to 12 month escrow, A$3M on third anniversary) Deferred R
Slide 14: A Quality Global Suite of Exploration Assets
A QUALITY GLOBAL SUITE OF EXPLORATION ASSETS Mount Isa (100%) Six Mineral Development Licences Largest uranium deposit in Queensland Canada Potential for future development Manyingee of uranium mine 41.5Mlb Status: Pre-development exploration Michelin 127.7Mlb 148.4Mlb Manyingee (100%) Mount
Slide 15: Why Paladin
PROVEN PRODUCER WHY PALADIN Paladin Energy Ltd (PDN.ASX)
Slide 16: Investment Drivers
INVESTMENT DRIVERS Owner of the globally significant Langer Heinrich deposit in mining friendly Namibia Existing infrastructure and historic mine development at Langer Heinrich results in a lower incentive price to restart operations than peers require to develop new mines Langer Heinrich has all th
Slide 17: Why Uranium?
WHY URANIUM? A solid long-term outlook
Slide 18: The Uranium Story Is Compelling
THE URANIUM STORY IS COMPELLING Spot Price 2000 - 2020 250.0 Demand Fulfilment 2011 - 2019 Cumulative supply cuts 160 2016 2017 2018 2021 “Under buying” 0 140 200.0 -5 Langer Heinrich 120 U308 Spot price (US$/lb) 150.0 -10 Cominak 100 M lb -15 Mlb U3O8 Mlb McArthur River 80 100.0 -20 -25 Kazakh-Prod
Slide 19: Demand Growth Far Exceeds Supply Capability
DEMAND GROWTH FAR EXCEEDS SUPPLY CAPABILITY Future Contracted Coverage Rates of US & European Utilities 120.00% Contract Coverage (% of total requirements) 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% US Utilities Coverage 2018 Euratom Utilities Coverage 2018* Current supply unable to meet even base
Slide 20: Supply Side Factors
SUPPLY SIDE FACTORS KEY MARKET OBSERVATIONS New project development Kazakhstan production Stocks drawn down Significant decrease When long-term timelines stretched: flat @ <60Mlb to Permitting uncertainty remains contracting returns, >400Mlb and +40Mlb in exploration spend 2021. 15% IPO + (ve) in
Slide 21: Appendix
APPENDIX
Slide 22: Resource & Reserve Tables
Mlb U3O8 Paladin Ownership Paladin Attributable Mineral Resources Mt Grade ppm U3O8 RESOURCE & RESERVE TABLES (100% basis) (%) (Mlb) Namibia Langer Heinrich Measured1 66.2 490 71.9 75 53.9 Indicated1 18.8 435 18.0 75 13.5 Inferred1 6.3 420 5.8 75 4.4 Stockpiles1 30.8 355 24.0 75 18.0 Total Namibia 1
Slide 23: Contact Us
CONTACT US HEAD OFFICE Level 4, 502 Hay Street Subiaco Western Australia 6008 T: +61 (0) 8 9381 4366 E: paladin@paladinenergy.com.au www.paladinenergy.com.au This presentation has been authorised for lodgement by Ian Purdy, CEO, Paladin Energy Limited
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