Paladin Energy Ltd · ASX:PDN
Paladin Energy — Diggers and Dealers Mining Forum 2023
26 slides from Paladin Energy's conference presentation, Aug 8, 2023
Slide 1: Diggers and Dealers Mining Forum
Diggers and Dealers Mining Forum Clean energy. Clear future. August 2023 IAN PURDY CHIEF EXECUTIVE OFFICER
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Disclaimer Person’s This presentation contains summary information about the Company’s activities current Except for statutory liability which cannot be excluded, the Company, its officers, as at the date of this presentation. The information in this presentation is of a gen
Slide 3: Clean energy. Clear future.
Clean energy. Clear future. Returning the Cornerstone offtakes Balance sheet Langer Heinrich secured and strong uranium strength and financial Long-term growth Mine to production market discipline optionality • Low risk brownfield restart • Offtakes secured with • US$126M1 in available • Significant
Slide 4: Strong demand growth for nuclear energy driven by global decarbonisation
Strong demand growth for nuclear energy driven by global decarbonisation Global reactor fleet set to grow significantly Second largest source of global clean energy with The only long-term viable source of low 59 reactors under almost zero carbon carbon emission baseload construction in 15 emission
Slide 5: Uranium structural supply shortage
Uranium structural supply shortage Western Market (Mlb U3O8 p.a.) Average • Demand is exceeding supply deficit of market expectations ~40Mlb p.a. over • Primary supply the next shortage decade1 • Secondary supplies are shrinking • Window of opportunity for incumbent producers Source: 1. TradeTech, M
Slide 6: Uranium inventory levels are rapidly reducing
Uranium inventory levels are rapidly reducing Secondary Supplies1 100,000 Underfeeding Utility inventory drawdowns Other Russian supplies 90,000 • Sustained inventory drawdowns are no 80,000 Thousand Pounds (U3O8 ) longer a viable 70,000 option for utilities • Western enrichers to 60,000 switch from
Slide 7: Uranium contracting has returned to fundamentals
Uranium contracting has returned to fundamentals Term Contracting Activity (Mlb U3O8 p.a.) 275 250 • Term contracting has returned to the uranium market, driven by 225 mid-term supply / demand fundamentals 200 • Increased term market activity coincides with vastly reduced “carry- trade” activity 175
Slide 8: Paladin is a preferred counterparty
Paladin is a preferred counterparty Global utilities are seeking… 1 Term contracts 2 Reliable counterparties 3 Diversification of supply Utilities underpin their long term reactor With growing demand and falling Recent geopolitical issues are increasing requirements through guaranteed supply seconda
Slide 9: Restart at LHM underpinned by exceptional contract book
Restart at LHM underpinned by exceptional contract book First tier counterparties Contracted Mix1 Pricing Mix1 • Rebuilt a global contract book with industry-leading counterparties • Combined market capitalisation of US counterparties is over 19% US$200B • Life of Mine Offtake with CNNC, one of the
Slide 10: Langer Heinrich Mine overview
Langer Heinrich Mine overview 75% owned by Paladin 10 years of production history with over 43Mlb of U3O8 produced and sold Excellent local infrastructure (port, road, rail, water & power) with proximity to the Walvis Bay industrial hub Strong Government and community support for uranium mining in N
Slide 11: Project on track and on budget (~65% complete)
Project on track and on budget (~65% complete) Decision to Long lead Early works All equipment Detailed structural Progression of Senior Operations Introduction Repairs & restart LHM orders completed orders completed & mechanical Repair & Operations workforce of stockpile Refurbishment completed eng
Slide 12: Transitioning towards operations
Transitioning towards operations Key in country and mine site leadership roles have been filled We expect ~300 staff to be operating and maintaining the Plant Strong engagement of local community labour force First phase ROM feed contract award imminent and contract mining tender scheduled to be awa
Slide 13: Michelin Uranium Project
Michelin Uranium Project (75% Paladin ownership - Canada) Strategic land position in premier mining Advanced exploration Development and jurisdiction project Exploration pathways • Uranium is classified as a critical mineral • US$75M of total historical in-ground • Update of prior concept study in C
Slide 14: Paladin's strategy for value creation
Paladin’s strategy for value creation Paladin is on a clear pathway to becoming a globally significant independent uranium producer, helping the transition to a low-carbon global economy 1 2 3 Execute at the Define Development Embed Langer Heinrich Mine and Exploration Potential Sustainable Returns
Slide 15: About Paladin
About Paladin 15
Slide 16: Market Cap A$2.3B, Share price A$0.78
Market Cap1 A$2.3B Share price1 A$0.78/share Available Cash2 US$126M Index ASX200 Research Coverage Namibia Langer Heinrich Mine Returning to Production 1. As at 2 August 2023 2. As at 30 June 2023 16
Slide 17: Paladin Board
Paladin Board Cliff Lawrenson Lesley Adams Melissa Holzberger Jon Hronsky OAM Peter Main Joanne Palmer Peter Watson Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Mining executive with d
Slide 18: Paladin Executive Team
Paladin Executive Team Ian Purdy Anna Sudlow Paul Hemburrow Alex Rybak Jess Oram Johan Roux Johan Coetzee Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Commercial Officer General Manager General Manager Project Director Exploration Langer Heinrich Mine Langer Heinrich
Slide 19: Supporting our local communities at Langer Heinrich Mine
Supporting our local communities at Langer Heinrich Mine Paladin has a policy prioritising local employment which in turn supports the local communities, and has so far provided the following local employment opportunities: • Over 90% of the 900+ project development team • 90% of in-country key man
Slide 20: Paladin is committed to implementing leading ESG reporting frameworks
Paladin is committed to implementing leading ESG reporting frameworks As Paladin moves towards production, the structured implementation of these three reporting frameworks (SASB, GRI and TCFD) will increase the level of detail reported over time, and will provide a more complete representation of P
Slide 21: Paladin's Sustainability Reporting Road Map
Paladin’s Sustainability Reporting Road Map Paladin has adopted and implemented the Sustainability Accounting Standards Board (SASB) framework, with the 2022 Sustainability Report being released in October 2022 Following the decision to return the LHM to production, the Company will incorporate the
Slide 22: A quality global suite of exploration assets provides growth opportunities
A quality global suite of exploration assets provides growth opportunities Globally significant, high-grade exploration portfolio 41.5Mlb 127.7Mlb Exploration Projects Extensive historical exploration activity with over US$140M previously spent Mineral Resources1,2 203Mt at 710ppm U3O8 for 317.6Mlb
Slide 23: Mineral Resources and Ore Reserves – Langer Heinrich
Mineral Resources and Ore Reserves – Langer Heinrich Summary Mineral Resources1 Millions of Tonnes Grade U3O8 Grade V2O5 Location Classification (Mt) (ppm) Contained U3O8 (Mlb) (ppm) Contained V2O5 (Mlb) In situ -open pit Measured 79.1 450 78.6 145 25.5 In situ -open pit Indicated 23.5 375 19.5 120
Slide 24: Mineral Resources table – Canadian exploration portfolio
Mineral Resources table – Canadian exploration portfolio Mineral Resources Mt Grade ppm U3O8 Mlb U3O8 (100% basis) Paladin Ownership (%) Canada Measured Michelin1 17.6 965 37.6 75 Rainbow2 0.2 920 0.4 75 Indicated Gear2 0.4 770 0.6 75 Inda2 1.2 690 1.8 75 Jacques Lake1 13.0 630 18.0 75 Michelin1 20.
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 2 Indicated Andersons 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
Slide 26: Investor Enquiries: Alex Rybak
Investor Enquiries: Alex Rybak paladin@paladinenergy.com.au Level 8 191 St Georges Terrace, WA 6000 +61 8 9423 8100 paladin@paladinenergy.com.au paladinenergy.com.au
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