Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (August 2018)
24 slides from Paladin Energy's investor presentation, Aug 28, 2018
Slide 1: Paladin Energy Ltd Investor Presentation
PALADIN ENERGY LTD 12 December, 2016 Investor Presentation August 2018 Private and Confidential Paladin Energy | Investor Presentation | 0
Slide 2: Disclaimer and Notes for JORC and NI 43-101 Mineral Resources and Ore Reserves
Disclaimer and Notes for JORC and NI 43-101 Mineral Resources and Ore Reserves This presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical facts, that address future production, reserve or res
Slide 3: What differentiates Paladin from other uranium producers?
What differentiates Paladin from other uranium producers? A GLOBAL URANIUM LEADER AND PROVEN PRODUCER OWNS LANGER HEINRICH, A STRATEGIC TIER ONE MINE IMPROVED BALANCE SHEET STRENGTH AND FLEXIBILITY BEST SENIOR LEVERAGE TO URANIUM UPSIDE Paladin Energy | Investor Presentation | 2
Slide 4: What differentiates Paladin from other uranium opportunities?
What differentiates Paladin from other uranium opportunities? Strategic portfolio of developed mines and projects, with unsurpassed uranium price leverage Two mines available for re-start (~7Mlbpa idle capacity) Lead time and capital associated with a re-start to bring back into production less
Slide 5: Paladin Status
Paladin Status Better positioned to survive current low uranium prices and capitalise on an increased uranium price Balance sheet recapitalised – significant debt reduction (was US$739M now US$115M 2023 PIK Senior Secured Note – Jan. 2018) Newly appointed Board - February 2018 Newly appointed
Slide 6: Capital Structure and Major Shareholders
Capital Structure and Major Shareholders Rotation from bondholders into natural equity holders continues Capital structure Recent share price (since re-listing on ASX) Shares Outstanding 1.713Bn Share price A$ 19.5c A$ Market capitalisation A$ 334M 0.22 Market capitalisation US$1 245M Cash US$2 50M
Slide 7: Key Activities Underway
Key Activities Underway Ready to mobilise when uranium prices increase Operational Review of Langer Heinrich Mine Optimisation studies – increased efficiencies, beneficiation and reduced operating cost Assess production capacity/Life of mine alternatives – maximize IRR Prepare the asset, rea
Slide 8: The Uranium story is compelling and timing is right
The Uranium story is compelling and timing is right Underlying estimated uranium use Spot uranium prices are at a 13-year low based on nuclear power generation 250 Growth in China, India and elsewhere means the nuclear power industry is consuming more uranium than pre- 200 Mlbs U3O8 Fukushima an
Slide 9: It's all about Supply…. Uranium prices higher for longer?
It’s all about Supply…. Uranium prices higher for longer? Becoming increasingly difficult for uranium supply to respond to future uranium price rises in a realistic timeframe +30Mlbs taken out of the market in recent years Significant decrease in exploration spend since Fukushima New Project D
Slide 10: The supply demand equation could look like this
The supply demand equation could look like this At the current rate of “under buying” utilities will be at “zero” discretionary inventories before 2022 – buying will need to equalise with consumption before then Care and maintenance supply can generally come back online if prices lift to US$40-6
Slide 11: Langer Heinrich A Strategic Tier One Mine
Langer Heinrich A Strategic Tier One Mine First Quartile All-in Cash Cost1 Lowest cost open-pit mine globally1 Top 10 Uranium Mine 2 by Production 4th largest open-pit Mineral Resources depleted to 30th June 2018 3 +20 Year Mine Life Class Measured Indicated Tonnes Mt 60.7 21.5 Grade ppm 513 459 U3O
Slide 12: Langer Heinrich Mine – Care and Maintenance Update
Langer Heinrich Mine – Care and Maintenance Update Care and maintenance makes the most sense to preserve our strategic tier one resource for higher uranium prices To reduce cash operating costs, Langer Heinrich ceased physical mining in November 2016 maintaining processing feed from medium grade o
Slide 13: Langer Heinrich Mine - Future Optimisation Potential
Langer Heinrich Mine - Future Optimisation Potential Innovation to be worked on during care and maintenance to re-envision LHM as an even lower cost operator for its return to production Back-end Upgrade Project (BUP) U-pgrade The BUP will utilise the existing Langer Heinrich Mine Marenica Energ
Slide 14: Vanadium Opportunity
Vanadium Opportunity Vanadium Price V2O5 Flake 98% US$/lb 20 Opportunity to 18 produce Vanadium at LHM 16 By-product not 14 waste product 12 Significant price 10 increase due to usage within 8 vanadium redox flow batteries 6 4 Future demand is expected to rise 2 due to supply constraints 0 S
Slide 15: Kayelekera Mine - Ready Built With Proven Operating Status
Kaylekera Mine - Ready Built With Proven Operating Status Developed mine on care and maintenance Fully built mine commissioned in 2008 with 3.3Mlbpa capacity Restart implementation plan under preparation incorporating optimised economics >5 Year Remaining 1 Mine Life 10.9Mlb Production before being
Slide 16: Kayelekera Mine – Care and Maintenance
Kayelekera Mine – Care and Maintenance Care and maintenance made the most economic sense to preserve the asset for higher uranium prices Kayelekera was placed on care and maintenance in 2014 due to the consistently low spot uranium prices Since this time Paladin has continued to treat water and
Slide 17: Paladin has a quality global suite of exploration and development assets
Paladin has a quality global suite of exploration and development assets Our fully built capacity plus large pipeline provides unique growth potential Mt Isa (82/91/100%) Direct 50% interest in 2,724ha of licences and 82% ownership of ASX-listed Summit Resources Canada Manyingee Largest uranium
Slide 18: We have greatly reduced our costs to preserve our cash on C & M
We have greatly reduced our costs to preserve our cash on C & M… Sufficient cash to fund operations into the future Exploration Exploration costs will reflect the work required to meet minimum tenement commitments ~ US$1.5Mpa Includes 100% spend for the Michelin Project Corporate Costs All non
Slide 19: Strategy
Strategy PRESERVE THE VALUE OF STRATEGIC TIER ONE LHM THROUGH CARE AND MAINTENANCE AND CONTINUED DEVELOPMENT OF OPTIMISATION INITIATIVES MAINTAIN KM AND EXPLORATION ON A MINIMAL EXPENDITURE, CARE AND MAINTENANCE BASIS MINIMISE CORPORATE AND ADMINISTRATIVE COSTS PREPARE FOR GROWTH Paladin Energy | In
Slide 20: Paladin Energy Ltd – Contact Details
Paladin Energy Ltd – Contact Details Head Office Level 4, 502 Hay Street Subiaco Western Australia 6008 PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61 (0) 8 9381 4978 Email: paladin@paladinenergy.com.au Website: www.paladinenergy.com.au Investor Relations An
Slide 21: Additional Information
Paladin Energy Ltd Additional Information Paladin Energy | Investor Presentation | 20
Slide 22: Board of Directors
Board of Directors Mr Rick Crabb Mr Crabb is a solicitor by background and was a partner in Perth firms Robinson Cox (now Clayton Utz) and Blakiston & Crabb (now Gilbert & B. Juris (Hons), LLB, MBA, Tobin). FAICD He has over 25 years experience specialising in mining, corporate and commercial la
Slide 23: Senior Management
Senior Management Mr Scott Sullivan Mr Sullivan brings 30 years of diversified mining experience to Paladin, across multiple commodities and projects domestically and internationally. BEng, MBA His experience spans strategic planning in mines and smelters; feasibilities; commissioning; mine expans
Slide 24: Resource and Reserve Tables
Resource and Reserve Tables 30-Jun-18 Paladin Mineral Resources M tonnes grade % U3O8 Mlb U3O8 Ownership % 30-Jun-18 Canada Measured Michelin 17.62 0.097 37.6 50 Paladin Ore grade % Rainbow 0.21 0.092 0.4 50 M tonnes Mlb U3O8 Ownership Reserves U3O8 Indicated Gear 0.35 0.077 0.6 50 % Inda 1.2 0.069