Paladin Energy Ltd · ASX:PDN
Paladin Energy — Africa Down Under Conference 2014
10 slides from Paladin Energy's conference presentation, Sep 5, 2014
Slide 1: Transition to Care and Maintenance with an African Perspective
Transition to Care and Maintenance with an African Perspective John Borshoff, Managing Director/CEO Africa Down Under Conference, 3-5 September 2014
Slide 2: Project Locations with Africa Focus
Project Locations with Africa Focus 1
Slide 3: Key Economic Benefits To Malawi
Key Economic Benefits To Malawi During production, Kayelekera Mine injected US$1.2M into Malawi’s economy every week and produced 10 percent of the nation’s Gross Domestic Product (GDP) Contributions From Inception to 31 July 2014 Uranium Export Proceeds – 10,756,999lb exported US$561M Goods & Servi
Slide 4: Approach Leading to C&M Decision
Approach Leading to C&M Decision Extension Planning and Preparation 5 teams — operational — treasury and finance — government and social — legal — sales and marketing 7 options studied all in parallel 3 months of evaluation and extreme planning covering — financial analysis — notifications/political
Slide 5: Kayelekera – Options Considered
Kayelekera – Options Considered Options considered in the strategic review — maintain status quo NO — attract a joint venture partner NO • likely to take several years and not at optimal value — high grading production NO • severe reduction in mine life — seek GoM concessions NO • in the circumstanc
Slide 6: Key Parameters of C&M Option
Key Parameters of C&M Option Commitment made to maintaining mine and infrastructure at KM in good order to facilitate rapid resumption of production and market conditions allow this to be done profitably Exploration to be continued on EPLs with defined budgets for proposed FY15 and FY16 Commitment t
Slide 7: Implementation Phases transitioning to C&M Status
Implementation Phases transitioning to C&M Status Four main phases involved Immediate phase — decision announced to all stakeholders, media, security — bulk of the redundancies – generous redundancy packages Run-down phase (approx. 2-3 months) — production continued at, or near, budget rates to redu
Slide 8: Uranium Market Snapshot
Uranium Market Snapshot $33.00 — steady uranium spot price increase $32.00 US$32.56 $31.00 since late July (+15%) $30.00 — spot market fundamentals improving $29.00 — term market contract volumes already $28.00 triple that of entire 2013 Source: UxC Daily Broker Average Price Current — globally, num
Slide 9: Price Increase Delay Exacerbating Supply Shortfall
Price Increase Delay Exacerbating Supply Shortfall Key considerations — even compared to Paladin’s previous study update (Oct. 2013), 2020 supply shortfall has increased 13% under revised incentive price scenario — depressed prices and lack of new mines create structural supply shortfall — Paladin S
Slide 10: THANK YOU!
THANK YOU! 9