Paladin Energy Ltd · ASX:PDN
Paladin Energy — Merrill Lynch Global Metals, Mining & Steel Investor Presentation 2008
35 slides from Paladin Energy's conference presentation, May 15, 2008
Slide 1: Paladin Energy Ltd - The New Energy In The Market
Paladin Energy Ltd The New Energy In The Market John Borshoff - Managing Director Merrill Lynch Global Metals, Mining & Steel Investor Presentation1 13 -15 May 2008, Key Biscayne, Florida
Slide 2: Disclaimer
Disclaimer 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 resource potential, exploration drilling, exploitation activities and e
Slide 3: Paladin - Accomplishment Overview
Paladin - Accomplishment Overview • Achieving stated operational objectives – Langer Heinrich and Kayelekera • A clear vision for its future development – foresaw transformational changes in nuclear industry • Seeking to establish a global mining footprint by end 2009 – in the principal uranium rich
Slide 4: Presentation Outline
Presentation Outline • Uranium Demand & Supply • Paladin Status • Projects Update • Future Outlook • Conclusion 4
Slide 5: Uranium Demand and Supply
Uranium Demand and Supply [PALADIN] A \ PALADIN ENERGY LTD
Slide 6: Nuclear Generating Capacity October 2007 & future
Nuclear Generating Capacity October 2007 & future In Operation (currently) Currently China • 439 REACTORS India • 372,002 MWe (16% world electricity) Remainder 20% Canada • 31 Countries South Korea 3% • 173Mlbs U3O8 required 2007 5% Germany 6% Under construction United States Russia 26% • 33 REACTOR
Slide 7: The Nuclear Reactor Fleet (1965 to 2050)
The Nuclear Reactor Fleet (1965 to 2050) From stagnation to full revival 800 Future growth (2007 possibility forecast) 700 (2006 600 forecast) 500 DRAMATIC TURNAROUND Reactors 439 400 (2005 forecast) ? 300 Dying/stagnating industry. 200 (dismal outlook reinforced ? over 20 years) WNA 01 forecast (re
Slide 8: Global Uranium Production/Demand
Global Uranium Production/Demand Supply is flat despite strong price/demand growth Cumulative planned and proposed reactor builds (by year of announcement) 112 120 Production 1996-2007 50 222 315 110 50 108.9 108 100 104.7 102.5 90 Million Pounds U 3O8 92.8 91.5 94.5 93.7 92.6 91 80 87.7 80.8 70 60
Slide 9: Building a New Mining Supply Industry
Building a New Mining Supply Industry 2007 to 2030 and beyond 2007 20M 230+--------------------------------------------------------------------------------------------- 30M 190 -------------------------------------------------- 160M 72M 150M 108 108M 40M 90M 2005 WNA forecast Huge discovery/developm
Slide 10: Current World Uranium Status
Current World Uranium Status globalisation of uranium markets • Process of inevitable globalisation of markets has commenced • Have NEW nuclear economies (e.g. China and India) • Have GROWING nuclear economies (e.g. US, Russia & France) Very poor U resources Major U mining and Opportunities for Pala
Slide 11: Paladin Status
Paladin Status 11
Slide 12: Uranium Companies
Uranium Companies current global status Companies Operations Producers - 18 countries Tier I • Cameco, AREVA, Rio Tinto, BHP-B, • ~85% of 2007 mine Companies Kazatomprom, ROSATOM, Navoi production operating in 9 Countries Tier II • Paladin Paladin, Uranium One, Denison, • ~15% of 2007 production Com
Slide 13: Corporate Details
Corporate Details • Listings: ASX (S&P ASX 100 Company), TSX, Namibia, Munich, Berlin, Stuttgart, Frankfurt • Issued Capital: 613M Shares 17M Employee Options • Market cap: US$3.05Bn (A$3.25Bn) • Funding: US$392M (cash) US$167M (Kayelekera project debt) • • Shareholding: 40,000 shareholders 47% inst
Slide 14: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties Advanced Exploration Pre Development Project Project Resources of 14Mlb Valhalla Resource of Construction of Mine 57Mlb Reserves of 25Mlb Andersons/Watta Resource 8Mlb Resources of 35Mlb On hold Manyingee Resource New Project of 24Mlb Angela/Pamela Deposits Hist
Slide 15: Convertible Bond Issue (February 08)
Convertible Bond Issue (February 08) use of funds Convertible Bond raising of US$325M, with proceeds to be used for the following: US$ 100–120M Mining development and expansions required to support new acquisitions US$ 50M Stage II Langer Heinrich expansion project US$ 50–70M Ongoing exploration and
Slide 16: Projects Update
PALADIN ENERGY LTD Projects Update PALADIN] A \ 16
Slide 17: Langer Heinrich Uranium Project
Langer Heinrich Uranium Project Tailings Dam Plant Shallow Open Pit 17
Slide 18: Langer Heinrich Uranium Project - location
Langer Heinrich Uranium Project location Waterline Powerline Walvis Bay 18
Slide 19: Langer Heinrich Uranium Project - current status
Langer Heinrich Uranium Project current status • Plant optimisation and remediation making excellent progress • Recoveries improving significantly in scrubbing, leaching, CCD and IX sections • Production (H2/CY07) - 650,562lb U3O8 • Production (Q2/CY08) 490,800lb U3O8 (plus 60,600lb increase in inve
Slide 20: Langer Heinrich Operations
Langer Heinrich Operations Langer Heinrich Pit and Mine Fleet Langer Heinrich Process Plant 20 LHUPL Product Ready For Shipment New Heat Exchange Units Installed
Slide 21: Kayelekera Uranium Project
Kayelekera Uranium Project Camp Tailings Dam Treatment Plant Open Pit 21
Slide 22: Kayelekera Uranium Project - plant erection in progress
Kayelekera Uranium Project plant erection in progress Power Station Fuel Tanks Pre Leach Thickener RIP Tanks Leach Tanks 22
Slide 23: Kayelekera Uranium Project - Project Summary
Kayelekera Uranium Project Project Summary • Discovered 1980 - worked to 1991 by other parties • Feasibility study and project databases acquired by PDN 1997 • BFS completed in 2006 modelled at US$60/lb – project payback 30 months (at $80/lb - 23 month payback) • Project represents: – 10% of GDP – 4
Slide 24: Kayelekera Uranium Project - current status
Kayelekera Uranium Project current status • US$167M project finance funding approved (project now fully funded) • Construction ongoing: civil earthworks and plant erection underway – 900 people on site • Long lead capital items – mill on site, acid plant on schedule – 10MW power station installed –
Slide 25: Australian Assets
Australian Assets - Skal & Valhalla Deposit - Angela Deposit 25
Slide 26: M&A Activities – Valhalla & Summit
M&A Activities – Valhalla & Summit Valhalla Acquisition Overview • Mt Isa Uranium JV (QLD) - 50% − Valhalla − Skal • Bigrlyi (NT) – 42.06% Summit Acquisition Overview • Mt Isa Uranium (QLD) - 50% • Mt Isa Uranium (QLD) - 100% − Anderson − Bikini − Mirroola − Tjilpa − Watta − Warwai + other prospects
Slide 27: Mt Isa Uranium Project - current status
Mt Isa Uranium Project current status • Mt Isa Uranium province controlled by Paladin • Project technically reassessed to attain geological and uranium target relevancy • Intensive drilling of Valhalla and Skal for resource expansion and classification • Focused metallurgical test work underway • En
Slide 28: Angela Project
Angela Project Angela Deposit – Northern Territory • Uranium Deposits in Northern Territory Australia – 37 applicants to Government for much sought after properties • Successful applicants – Cameco and Paladin in 50:50 JV – nil acquisition cost – commitment to explore and finalise BFS/EIS in 2 years
Slide 29: Outlook
Outlook 29
Slide 30: Production Schedule
Production Schedule plenty of upside on existing major projects 2007 2008 2009 2010 2011 2012 Mlb Mlb Mlb Mlb Mlb Mlb LH Stage I - 2.6 2.6 2.6 2.6 2.6 (2.6Mlb) LH Stage II - - 0.5 1.1 1.1 1.1 (3.7Mlb) LH Stage III to - - - 0.4 1.6 2.3 6Mlb Sub Total - 2.6 3.1 4.1 5.3 6.0 Kayelekera - - 1.6 3.3 3.3 3
Slide 31: Project Pipeline
Project Pipeline assets acquired & projects developed Langer Heinrich Uranium Mining Operation 2012 Angela End 2008 Inventory U3O8 269 Mlb 31
Slide 32: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key outcomes for 2008 • Langer Heinrich (Namibia) – complete Stage II expansion (2.6Mlb to 3.7Mlb pa) – optimisation of Stage I (2.6Mlb – 2.8Mlb for 2008) – new resource estimate by mid 2008 • Kayelekera (Malawi) – construction completed end 2008 – new resource estima
Slide 33: Project Development
Project Development established team and sequential development capability BFS CONSTRUCTION - US$92M PRODUCTION 2.6Mlb pa 3.7Mlb pa Stage II US$50M Stage III PRE-FEASIBILITY CONSTRUCTION PRODUCTION BFS ~ US$2.3M [Now 85%] UPDATE US$200M 3.3Mlb pa Through Project Generation Activities M&A ACTIVITIES
Slide 34: Conclusion
Conclusion Develop Paladin Into A Major Global Uranium Supplier • A focused uranium energy company – large resource base in 6 deposits - 269Mlb – strong resource upside potential – strength through geographic diversity Manyingee – expertise and funding to deliver • Langer Heinrich and Kayelekera – p
Slide 35: Contact Details
PALADIN ENERGY LTD Contact Details Mr John Borshoff Grand Central 1st Floor, 26 Railway Rd (Managing Director) Subiaco Western Australia 6008 Mobile: +61 (0) 419 912 571 PO Box 201, Subiaco Email: john.borshoff@paladinenergy.com.au Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61
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