Paladin Energy Ltd · ASX:PDN
Paladin Energy — FY2013 Earnings Presentation
22 slides from Paladin Energy's earnings presentation, Aug 29, 2013
Slide 1: June 2013 Full Year Conference Call Presentation
P PALADI IN ENER RGY LTD D A CN 061 681 098 0 Ref: 318435 29 August 2013 2 ASX Marke et Announce ements B Electroniic Lodgemen By nt Australian Securities S Exchange 20 Bridge S Street SYDNEY NSW N 2000 adam Dear Sir/Ma June 2013 Full Yearr Conferenc ce Call Pre esentation Attached please find d the
Slide 2: Annual Results Conference Call and Investor Update
Annual Results Conference Call and Investor Update 30 August 2013 John Borshoff – Managing Director/CEO Alan Rule – CFO Mark Chalmers – Executive General Manager, Production
Slide 3: 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 4: Presentation Outline
Presentation Outline Key Achievements Uranium Market Update Financial Review Project Update Outlook 2
Slide 5: Key Achievements For The Year
Key Achievements For The Year Secured Long-term Off-take Agreement with US$200M pre-payment with Électricité de France Repaid a total of US$181M in debt across the company — including US$134M outstanding on the US$325M March 2013 Convertible Bonds Record annual production of 8.255Mlb U3O8 , a 20% in
Slide 6: Strong Growth – Delivered
Strong Growth — Delivered Development & Consolidation Growth & Optimisation 12.00 Current installed => 10-08 capacity 8.5MIb = c 8.00 a 2 4 16% 3 6.00 21% L 2 é f a, oO 4.00 24% | =) 70% 2.00 4 59% 0.00 || | 07/08 08/09 09/10 10/11 11/12 12/13 13/14 Langer Heinrich Actual ' Kayelekera Actual li Lang
Slide 7: Presentation Outline
Presentation Outline Key Achievements Uranium Market Update Financial Review Project Update Outlook 5
Slide 8: Market Snapshot
Market Snapshot Demand Known, key nuclear economics have reaffirmed their growth targets Supply Uncertainty and delays with growth targets unlikely to be achieved Majority of mines unprofitable at US$35/lb - needed developments at standstill Current prices do not warrant investment and cannot be fin
Slide 9: Supply Growth Uncertainty
Supply Growth Uncertainty The impossible challenge: Primary supply will have to increase by circa 90Mlb U3O8 pa to meet 2020 requirements (in 6 years) In previous 7-year period (2005 – 2012), production increased only by 48Mlb, and Kazakhstan accounted for ~40Mlb NO OTHER “KAZATOMPROM” OR PALADIN ON
Slide 10: Uranium Price Incentivised Paladin’s Development
Uranium Price Incentivised Paladin’s Development UxC spot price/lb FUKUSHIMA Total Production LHM & KM GLOBAL FINANCIAL CRISIS PALADIN DECISION TO PROCEED WITH PRODUCTION Total Resources with Project Acquisition -8 - 8
Slide 11: Presentation Outline
Presentation Outline Key Achievements Uranium Market Update Financial Review Project Update Outlook 9
Slide 12: Profit & Loss Year ended June 2013
Profit & Loss Year ended June 2013 Revenue of US$408.4M – up 12% — 8.253Mlb sold at average realised price of US$49.5/lb Gross margin from operations of US$55.9M (excluding impairment) — average C1 costs for June quarter at US$33/lb — KM inventory impairment of US$30.9M Site non-production costs of
Slide 13: Langer Heinrich C1 Cost of Production
Langer Heinrich C1 Cost of Production US$/lb 34.0 1,600,000 lb 1,400,000 33.0 1,200,000 32.0 1,000,000 31.0 800,000 600,000 30.0 400,000 29.0 200,000 28.0 0 Sep-12 Dec-12 Mar-13 Jun-13 Uranium produced - lb C1 cost of production - US$/lb FY 2014 target US$29/lb 11
Slide 14: Kayelekera C1 Cost of Production
Kayelekera C1 Cost of Production US$/lb 50.0 900,000 lb 800,000 700,000 45.0 600,000 500,000 40.0 400,000 300,000 35.0 200,000 100,000 30.0 0 Sep-12 Dec-12 Mar-13 Jun-13 Uranium produced - lb C1 cost of production - US$/lb Target US$4-6/lb saving from Eskom power grid and acid recycling by June 2014
Slide 15: Cash Flow
Cash Flow Year Ended June 2013 Cash and cash equivalents of US$78.1M — subsequent to year end, successfully raising A$88M through private placement in August 2013 — impacted by June month sales of US$60M only received in July Cash inflow from operating activities of US$194.5M — LHM & KM generated po
Slide 16: Presentation Outline
Presentation Outline Key Achievements Uranium Market Update Financial Review Project Update Outlook 14
Slide 17: Langer Heinrich Project
Langer Heinrich Project Production for FY2013 5.292Mlb U3O8 – up 20%: Design Criteria Stage 2 Stage 3 Actual Design FY13 — recovery 86% versus design 85% Ore Throughput 2.5Mtpa 3.5Mtpa 3.54Mtpa — feed grades 812ppm versus design 800ppm Leach 1.5Mtpa 2.1Mtpa 1.99Mtpa — currently producing above desig
Slide 18: Kayelekera Project
Kayelekera Project Production capacity of 3.3Mlb U3O8 pa Design Criteria Design Actual FY13 Ore Throughput 1.5Mtpa 1.3Mtpa Production for FY2013 2.963Mlb U3O8 – up 20% — recovery 84.6% versus design 87% Ore Feed Grade 1150ppm 1143ppm — feed grades 1,143ppm versus design 1,150ppm Recovery 87% 84.6% —
Slide 19: Presentation Outline
Presentation Outline Key Achievements Uranium Market Update Financial Review Project Update Outlook 17
Slide 20: Langer Heinrich Minority Interest Sale
Langer Heinrich Minority Interest Sale Process to sell minority interest in Langer Heinrich terminated early August All final bidding parties subsequently contacted Paladin to re-engage Paladin will recommence discussions in September with a clear objective of achieving a sale as soon as possible Va
Slide 21: Outlook
Outlook Combined production guidance for FY2014 of 8.3 – 8.7Mlb U3O8 — with improving performance and decreasing unit costs Paladin is committed to closing a sale of a minority interest in Langer Heinrich as soon as possible — key participants remain interested in world class asset Full review of co
Slide 22: Paladin Energy Ltd Contact Details
Paladin Energy Ltd Contact Details Head Office Level 4, 502 Hay Street Subiaco Western Australia 6008 PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Facsimile: +61 (0) 8 9381 4978 Email: paladin@paladinenergy.com.au Website: www.paladinenergy.com.au Investor Relations Team