Paladin Energy Ltd · ASX:PDN
Paladin Energy — Shareholder Meeting (November 2013)
20 slides from Paladin Energy's shareholder meeting presentation, Nov 21, 2013
Slide 1: Annual General Meeting Presentation and Chairman's Address
P PALADI IN ENER RGY LTD D A CN 061 681 098 0 Ref: 326008 ber 2013 21 Novemb 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 Annual General Meeting Presentatio P n and Chairman’s Ad ddress Attached pleas
Slide 2: Chairman's Address at 2013 Annual General Meeting
PALADIN ENERGY LTD ACN 061 681 098 CHAIRMAN’S ADDRESS AT 2013 ANNUAL GENERAL MEETING Operationally the past financial year has been a watershed for Paladin. Both the Langer Heinrich and Kayelekera mines delivered record production with the result that the combined 8.255Mlb U3O8 annual production was
Slide 3: Chairman's Address (continued)
redundant a number of our staff. Regardless, our intention remains to retain our core capability in anticipation of improvement in the uranium price. Your Board is fully committed to getting value back into the Company, which we consider to be in a sound operational and strategic position to take ad
Slide 4: Langer Heinrich Mining Operation
Langer Heinrich Mining Operation Annual General Meeting 21 November 2013 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 Company Status and Highlights Paladin Supply/Demand Outlook Operations Update Outlook 2
Slide 7: Paladin – A Modern Uranium Company
Paladin – A Modern Uranium Company Uranium specialist with demonstrated achievements — employs 1800 staff and contractors — among top ten producers in the world — head office in Perth Mining — installed production capacity of 8.5Mlb U3O8 pa — operations in two climatic regions (arid zone and monsoon
Slide 8: Company Status and Highlights
Company Status and Highlights Health and safety — extended period of 5 star safety performance impacted by 2 fatalities — full review of all aspects of safety within the Group underway Improving operational performance — mines operating at record levels — production costs continue to trend lower — g
Slide 9: Presentation Outline
Presentation Outline Company Status and Highlights Paladin Supply/Demand Outlook Operations Update Outlook 5
Slide 10: Supply is the Real Issue Going Forward
Supply is the Real Issue Going Forward Uranium market remains subdued — short term supply surplus from excess enrichment capacity and Japanese inventory reduction — current uranium price and depressed financing environment pushing back already delayed projects — outside Kazakhstan, Paladin provided
Slide 11: Supply Deficit Certain even with Price Escalation
Supply Deficit Certain even with Price Escalation Supply/demand balance Widening deficits start in 2016 — under a moderate price increase scenario, supply deficit would be equivalent to 31Mlb pa by 2020 Current excess supply can mitigate initial future deficits through inventory buildup, but shortag
Slide 12: Presentation Outline
Presentation Outline Company Status and Highlights Paladin Supply/Demand Outlook Operations Update Outlook 8
Slide 13: Globally Diverse Project Pipeline
Globally Diverse Project Pipeline 9
Slide 14: Langer Heinrich Project Update
Langer Heinrich Project Update Three successful production capacity Actual Budget Actual expansions completed FY13 FY14 Sept’13 — 5.2Mlb with Stage 3 starting mid 2012 qtr — currently producing above budget — Sept quarter >5.7Mlb pa rate Ore processed 3.54Mt 3.65Mt 0.87Mt Ore feed grade 812ppm 753pp
Slide 15: Kayelekera Project Update
Kayelekera Project Update Production capacity of 3.3Mlb U3O8 pa Actual Budget Actual FY13 FY14 Sept’13 — operating at design post August planned shut qtr Ore 1.3Mt 1.4Mt 0.27Mt processed First modern resin-in-pulp (RIP) uranium Ore feed 1,143ppm 1,194ppm 1,264ppm processing facility grade Recovery 8
Slide 16: Production and C1 cash costs for last 2 years
Production and C1 cash costs for last 2 years Langer Heinrich Focus on corporate cost reductions — corporate overhead and exploration costs cut by US$10.8M, reduction of 24% over FY13 — discretionary capital expenditure reduced by US$12.4M Significant cost Kayelekera reductions and production optimi
Slide 17: Presentation Outline
Presentation Outline Company Status and highlights Paladin Supply/Demand Outlook Operations Update Outlook 13
Slide 18: Re-engagement for a stake in Langer Heinrich
Re-engagement for a stake in Langer Heinrich Negotiations restarted to sell a minority stake in Langer Heinrich — initial process to sell minority interest in Langer Heinrich terminated early August — rejuvenated engagement with a prominent group of nuclear industry players — value expectations refl
Slide 19: What Paladin Brings to the Nuclear Industry Table
What Paladin Brings to the Nuclear Industry Table Demonstrated achievement building 2 uranium mines in 8 years De-risked operational performance at Langer Heinrich and Kayelekera Proven management and technical capability Langer Heinrich is a world class flagship project with 20+ years production Cl
Slide 20: Over the last 2 years the following has taken place
Over the last 2 years the following has taken place Raised US$200M in Uranium offtake prepayment Paid out the 2013 convertible bonds US$325M Reduced cash costs by $80M-$100M in FY2013 and FY2014 Reducing head office staff by 35% People forget we are one of only a small handful of companies to succes