Paladin Energy Ltd · ASX:PDN
Paladin Energy — H1 FY2008 Earnings Presentation
23 slides from Paladin Energy's earnings presentation, February 2008
Slide 1: Paladin Energy Ltd - Half Year Results & Investor Update
PALADIN ENERGY LTD The New Energy In The Market John Borshoff, Managing Director Half Year Results & Investor Update February 2008 1
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: Presentation Outline
Presentation Outline • Uranium Demand & Supply Overview • Paladin Status • Half Year Financials • Project Update • Outlook 3
Slide 4: Global Uranium Production/Demand
Global Uranium Production/Demand Uranium Market Balance Production 1996 - 2007 2007-2015 120 2000 110 100 1800 90 1600 80 million pounds U3O8 70 1400 million pounds U3O8 60 108.9 108 104.7 50 91 92.8 87.7 91.5 94.5 93.7 92.6 102.3 1200 40 80.8 30 1000 20 800 10 0 600 1996 1997 1998 1999 2000 2001 20
Slide 5: Uranium Pricing
Uranium Pricing 2007/08 Spot Price vs Term Price 160 140 Uranium Price (US$/lb) 120 100 80 60 40 20 0 Industry Received Prices ov pr ug p ec l ct n n b n ar ay Ju Se Ja Ja Ju Fe O A M 80 N D A M 70 Received Price (US$/lb) Term Price Spot Price 60 50 40 30 20 10 0 2007 ERA Cameco Uranium One Paladin
Slide 6: Building a New Mining Supply Industry
Building a New Mining Supply Industry 2007 to 2030 and beyond 20M 230+ --------------------------------------------------------------------------------------------- 30M 190 -------------------------------------------------- 160M 72M 150M 108 108M 40M 90M 2005 WNA forecast 6
Slide 7: Paladin Project Locations/Status
Paladin Project Locations/Status Advanced Exploration Pre Development Project Projects Resources of 14mlbs Valhalla Resource Development Mine of 57mlbs Reserves of 25mlbs Andersons/Watta Resource 8mlbs Resources of 35mlbs On hold Manyingee Resource of 24mlbs Operating Mine Reserves of 38mlbs Resourc
Slide 8: Achievements
Achievements Paladin has demonstrated over the past two years that it has multi project capability supported by a strong team PROJECTS M&A FINANCING PROJECTS PROJECTS M&A PROJECTS Langer Heinrich Valhalla US$250M LHU Kayelekera Summit Langer Heinrich at Construction Uranium Convertible Commissioning
Slide 9: Half Year Financials
HALF YEAR FINANCIALS 9
Slide 10: Sales Revenue
Sales Revenue • Sales Revenue of US$17.7M for the Dec 07 quarter and US$43.7M for the half year • 268,000lb sold for the Dec 07 quarter at an average realised price of US$66/lb and 601,000lb sold for the half year at an average realised price of US$73/lb • The pounds sold for the half year were sour
Slide 11: Income Statement
Income Statement • Gross profit of US$2.7M for the Dec 07 quarter and US$6.8M for the half year with Langer Heinrich contributing US$1.0M and US$2.8M respectively. No impact from sale of third party uranium purchased in the June 07 quarter • Exploration expenditure of US$2.8M for the Dec 07 quarter
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Cash and cash equivalents of US$149M at 31 Dec 07 (US$110M invested in US Treasury Bonds, balance in banks) • Inventories of US$27.7M including US$13.5M of Langer Heinrich finished goods production at cost • Net assets of US$1.3bn • Cash inflow from operations of US$9.7
Slide 13: Langer Heinrich Uranium Project Update
LANGER HEINRICH URANIUM PROJECT UPDATE 13
Slide 14: Langer Heinrich - Project Update
Langer Heinrich - Project Update current status & expectation for August 08 • Today (February 2008) – production ramp up and remediation making excellent progress – old heat exchangers stable – starting to replace with new units – recoveries improved significantly in scrubbing, leaching, CCD, and IX
Slide 15: Kayelekera Uranium Project Update
KAYELEKERA URANIUM PROJECT UPDATE 15
Slide 16: Kayelekera - Project Update
Kayelekera - Project Update current status & expectation for August 08 • Today (February 2008) – US$167M project finance funding approved (construction fully funded) – construction ongoing – civil and earthworks – 600 people on site – long lead capital items in country – power and mill – mining cont
Slide 17: Australian Assets Mt Isa
AUSTRALIAN ASSETS MT ISA 17
Slide 18: Mt Isa - Project Update
Mt Isa - Project Update current status & expectation for August 08 • Today (February 2008) – Mt Isa Uranium province controlled by Paladin – project technically reassessed to attain geological and uranium target relevancy – extensive drilling underway at Valhalla and Skal deposits – base line enviro
Slide 19: Outlook
OUTLOOK 19
Slide 20: Production Schedule
Production Schedule plenty of upside on existing major projects Project Production Start Production Vol. (U3O8) million pounds LANGER HEINRICH January 2007 2.60 (Stage 1) (full production Jan 08) KAYELEKERA 4Q 2008 3.30 LANGER HEINRICH December 2008 1.10 (Stage 2) 7.00Mlb Potential to expand these p
Slide 21: Project Pipeline 269 Mlb
Project Pipeline assets acquired & projects developed Langer Heinrich Uranium Mining Operation 2012 Late 2008 Inventory U3O8 269 Mlb 21
Slide 22: Conclusion
Conclusion DEVELOP PALADIN INTO A MAJOR GLOBAL URANIUM SUPPLIER • A focused uranium energy company ei n rich Oob agoo e r H ma – large resource base in 6 deposits - 269Mlb L an g Valhalla – strong resource upside potential Database Summit – strength through geographic diversify Manyingee – expertise
Slide 23: 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