Paladin Energy Ltd · ASX:PDN
Paladin Energy — Noosa Mining Conference 2020
26 slides from Paladin Energy's conference presentation, Nov 13, 2020
Slide 1: Noosa Mining Conference
PALADIN ENERGY LTD Noosa Mining Conference 13 November 2020 Ian Purdy – Chief Executive Officer PALADIN ENERGY LTD
Slide 2: Disclaimer and competent persons statement
Disclaimer and competent persons statement Disclaimer 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 contain all t
Slide 3: World class uranium producer with a defined restart plan
World class uranium producer with a defined restart plan Proven 10-year track record of uranium production from Langer Heinrich mine in Namibia Well known product with 43Mlb of U3O8 successfully marketed and shipped to global customers ✓ Fully permitted to resume mining, processing and uranium expor
Slide 4: Namibia – a premier uranium jurisdiction
Namibia – a premier uranium jurisdiction Globally significant uranium province (Husab, Rossing and Langer Heinrich) when at full capacity supplies ~12% of the world’s uranium Uranium has been continually produced in Namibia since 1976 under a stable mining and uranium regulation regime Mining contri
Slide 5: Langer Heinrich’s proven production track record
Langer Heinrich’s proven production track record Paladin own 75% of Langer Heinrich with 25% owned by CNNC Overseas Uranium Holdings Limited1 First production from Langer Heinrich in 2007 with peak production of 5.6Mlbs in 2014 before operations suspended due to low uranium prices in 2018 Extensive
Slide 6: Langer Heinrich’s proven uranium product
Langer Heinrich’s proven uranium product Langer Heinrich Sales by Utility Sales by • 43Mlb U3O8 successfully marketed over 10 Customer Group Region years • Delivered product aligned to feedstock 0.4% specifications of global UF6 conversion facilities operated by Cameco, Honeywell, 18.2% Orano and CN
Slide 7: Mine Restart Plan confirms economic significance of Langer Heinrich
Mine Restart Plan confirms economic significance of Langer Heinrich1,2 Cost to Restart Life of Mine C1 Peak Operations Cost of Production Production US$81M US$27/lb 5.9Mlb U3O8 pa for 7 years $ Mine Restart Capital Life Intensity3 17 years US$14/lb 1. Information within this slide as detailed in ASX
Slide 8: The ability to rapidly return to full production rate
The ability to rapidly return to full production rate Ramp Up Mining Phase Stockpile Phase 7 700 US$81m of Pre-Production Capex • Operational Readiness (US$34M): 6 600 Working capital and other cash expenditure to restart baseline 5 500 operations Crushed (t) Production (lb) Millions • Discretionary
Slide 9: Why Uranium?
Why Uranium?
Slide 10: Structural supply deficit with growing demand
Structural supply deficit with growing demand World Nuclear Association - Supply Shortage World Nuclear Generation Facts Tonnes U 125,000 10% of global electricity generation1 100,000 75,000 20% of United States Electricity Generation1 50,000 25,000 ` C02 2nd largest source of global clean energy wi
Slide 11: Falling utility coverage rates will drive term contract activity
Falling utility coverage rates will drive term contract activity Future Contracted Coverage Rates of US & European Utilities Historic Term Contract Activity Contract coverage (% of total requirements) Mlb pa Million pounds U3O8e Non-U.S. Utilities U.S. Utilities 275 140% 250 120% 225 100% 200 80% 17
Slide 12: Current pricing unsustainable
Current pricing unsustainable Uranium Market Prices 2011-20 US$/lb Spot Price Term Contract Jan 2011 Spot market peaks, Ranger tailings overflow risk $75 3Mlb lost production Nov 2017 Cameco suspends Apr 2020 McArthur River COVID-19 mine $65 Jul 2018 suspensions in (production loss of Yellow Cake 18
Slide 13: Paladin Investment Conclusion
Paladin Investment Conclusion PALADIN ENERGY LTD
Slide 14: What does it mean for Paladin?
What does it mean for Paladin? 1 Langer Heinrich is 2 3 4 Strong operational competitively positioned versus Poised to take advantage of Strong financial track record other uranium projects improving uranium market position • Proven track record with 10 • Industry competitive capital • Significant s
Slide 15: Appendix
Appendix PALADIN ENERGY LTD
Slide 16: Key restart operational metrics
Key restart operational metrics Ramp Up Phase Ramp Mining Stockpile • Ramp up to full production targeting 80% nameplate within six months and 100% Up Phase Phase Phase nameplate within twelve months (McNulty Curve, Type One) (Year 1) (Years 2-8) (Years 9-17) • Targeted reliability improvements deli
Slide 17: Langer Heinrich cost profile
Langer Heinrich cost profile Ramp Up Mining Stockpile Life of Mine Production Cash Cost US$/lb U3O8 Phase Phase Phase (all 3 Phases) Mining Phase Mining & Stockpile Rehandling1 3.3 12.2 4.6 8.7 5% Mining & Stockpile Rehandling Processing & Maintenance 16.9 13.7 19.3 16.2 2% 10% 45% ` Processing - re
Slide 18: Langer Heinrich Mine historical performance parameters
Langer Heinrich Mine historical performance parameters FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Mining Rate (in-situ) Mt 27.8 21.6 20.2 24.6 7.6 0 Mill Throughput Mt 3.44 3.72 3.40 3.57 3.52 2.95 Mill Feed Grade ppm 812 783 768 699 610 475 Recovery % 86.0% 87.0% 87.6% 86.3% 87.7% 88.5% U3O8 Product
Slide 19: Paladin corporate snapshot
Paladin corporate snapshot Market Snapshot ASX: PDN A Supportive Shareholder Base3 Shares on issue 2.027B Geographic split Top 50 holders own 90% of shares Share price1 A$ 0.125c 13% Market capitalisation1 A$ 253M 23% 25% Market capitalisation US$1, 2 185M 27% 51% Unrestricted Cash US$3 32.4M 15% 12
Slide 20: Meet the Board and CEO
Meet the Board and CEO Cliff Lawrenson Peter Main Peter Watson Ian Purdy Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Mining executive with deep expertise in Mining and finance professional with Chemical engineer with extensive Highly-respected executi
Slide 21: The Executive Team
The Executive Team Anna Sudlow Jonathon Clements Johan Roux Gary Stoker Andrea Betti Chief Financial Officer General Manager General Manager Principal Uranium Company Secretary Projects and Development Langer Heinrich Marketing Consultant (Consultant) Corporate finance professional Mining and minera
Slide 22: 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 of Manyingee 5-7Mlbpa uranium mine Status: Pre-development exploration 41.5Mlb Michelin 127.7Mlb 148.4Mlb Mount Isa Austr
Slide 23: Mineral Resources Table – Langer Heinrich
Mineral Resources Table – Langer Heinrich Measured Indicated Inferred Total Mlb U3O8 Mlb U3O8 Mlb U3O8 Mlb U3O8 Paladin Uranium Mineral Resources1 Grade ppm (100% Grade ppm (100% Grade ppm (100% Grade ppm (100% Ownership 250ppm U3O8 cutoff Mt U3O8 basis) Mt U3O8 basis) Mt U3O8 basis) Mt U3O8 basis)
Slide 24: Mineral Resources Table – Canadian Exploration portfolio
Mineral Resources Table – Canadian Exploration portfolio Mlb U3O8 Mineral Resources Mt Grade ppm U3O8 (100% basis) Paladin Ownership (%) Canada Measured Michelin1 17.6 965 37.6 60 Rainbow 2 0.2 920 0.4 60 Indicated Gear 2 0.4 770 0.6 60 Inda2 1.2 690 1.8 60 Jacques Lake1 13.0 630 18.0 60 Michelin1 2
Slide 25: Mineral Resources Table – Australian Exploration portfolio
Mineral Resources Table – Australian Exploration portfolio Mineral Resources Mt Grade ppm U3O8 Mlb U3O8 (100% basis) Paladin Ownership (%) Australia Measured Valhalla1 16.0 820 28.9 100 Indicated Andersons2 1.4 1,450 4.6 100 Bikini3 5.8 495 6.3 100 Duke Batman4 0.5 1,370 1.6 100 Odin5 8.2 555 10.0 1
Slide 26: CONTACT US
CONTACT US HEAD OFFICE T: +61 (0) 8 9423 8117 Level 4, 502 Hay Street E: paladin@paladinenergy.com.au Subiaco Western Australia 6008 www.paladinenergy.com.au PALADIN ENERGY LTD