Paladin Energy Ltd · ASX:PDN
Paladin Energy — Shareholder Meeting (November 2014)
19 slides from Paladin Energy's shareholder meeting presentation, Nov 20, 2014
Slide 1: Annual General Meeting Presentation and Chairman's Address
PALADIN ENERGY LTD ACN 061 681 098 Ref: 371325_1 20 November 2014 ASX Market Announcements By Electronic Lodgement Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Annual General Meeting Presentation and Chairman’s Address Attached please find the presentation in relati
Slide 2: Chairman's Address at 2014 Annual General Meeting
PALADIN ENERGY LTD ACN 061 681 098 Chairman’s Address at 2014 Annual General Meeting Dear Fellow Shareholders The financial year ending 30 June 2014 and indeed the period since then marked a time of considerable activity at your Company. Now is an opportune moment to reflect on events over the past
Slide 3: Chairman's Address (continued)
Shareholders should also recall the US$200M long-term offtake agreement Paladin entered into with Électricité de France S.A (EdF) in September 2012. EdF is the world’s largest uranium consumer. Through our new partnership with CNNC and the offtake agreement with EdF, Paladin has formed long- term st
Slide 4: Annual General Meeting November 2014
Annual General Meeting 20 November 2014 John Borshoff – Managing Director/CEO
Slide 5: 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 re
Slide 6: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Outlook 3
Slide 7: Nuclear on the Ascendancy – renewed vigor
Nuclear on the Ascendancy – renewed vigor In November alone the following significant nuclear developments have occurred Japan gives green light for restart of its nuclear programmes (7 Nov) China commits to stringent emission targets by 2030 meaning even more reliance on nuclear power. President Xi
Slide 8: Global Uranium Production - Paladin is a Standout
Global Uranium Production - Paladin is a Standout 2004 - 2013 PALADIN – A SIGNIFICANT EMERGING CONTRIBUTOR IN GLOBAL TERMS (2008 – 2013) 180 160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Rest of World Kazakhstan Paladin 5
Slide 9: Material Achievements are Redefining Paladin
Material Achievements are Redefining Paladin WE ARE TICKING THE BOXES Key focus areas for Paladin Achieve strong Deleverage Establish Take advantage of Key Paladin Achievements operational the balance sustainable future price performance sheet cash flows resurgence 1. Significant cost reduct
Slide 10: Operational Update Post FY14
Operational Update Post FY14 Langer Heinrich production on track Langer Heinrich JV minority sale for US$190M completed 23 July — CNNC now formally in Joint Venture with Paladin Successful refinancing of Langer Heinrich facility — reduces repayments by US$32.4M over 3.5 years Kayelekera restart feas
Slide 11: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Outlook 8
Slide 12: Uranium Market Snapshot
Uranium Market Snapshot US$/lb U3O8 Spot Price US$43/lb • Dramatic uranium spot price increase 44 42 since May (~50%) 40 38 • Spot market fundamentals improving 36 as supply tightens and demand rises 34 32 • Term market contract volumes already 30 28 triple that of entire 2013; • Additional term con
Slide 13: Uranium Market Update
Uranium Market Update US Mid-Term elections expected to boost US nuclear power programme Japanese reactor restarts imminent — Japanese utilities have submitted applications for safety reviews for 20 reactors — Sendai 1 & 2 (Kyushu Electric) received restart approval from Prefecture Governor 7 th Nov
Slide 14: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Outlook 11
Slide 15: Langer Heinrich Project Update
Langer Heinrich Project Update Production — strong and stable production (5.59Mlb FY14) — well positioned for FY15 annual maintenance successfully completed further operational improvements expected targeting overall recovery of 88% FY15 guidance 5.4Mlb–5.8Mlb U3O8 Optimisation and innovation
Slide 16: Kayelekera Project Strategically Placed
Kayelekera Project Strategically Placed Transition to C&M smoothly completed — C&M procedures well established C&M water management plan well advanced — involves controlled release of surplus run-off into local inland waters — treatment to internationally recognised discharge standards — plant modif
Slide 17: Key Pipeline Projects (being advanced)
Key Pipeline Projects (being advanced) Advancing toward Field Leach Trial (FLT) Low-cost ISR project targeting 2Mlb pa U3O8 production – existing mining lease – Paladin has the expertise to develop MANYINGEE 26Mlb WA 2018 development target (price dependent) – field leach testing planned for 2015/16
Slide 18: Presentation Outline
Presentation Outline Key Achievements and Update Uranium Market Update Project Update Outlook 15
Slide 19: What We Plan To Do In FY15
What We Plan To Do In FY15 Guidance for FY15 is 5.4Mlb to 5.8Mlb U3O8 FY15 priorities — further cost rationalisation at operations and corporate level — strong operational performance through production optimisation — deleveraging the balance sheet — remaining positioned to take advantage of the fut