Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (May 2018)
19 slides from Paladin Energy's investor presentation, May 2018
Slide 1: Investor Presentation
PALADIN ENERGY LTD 12 December, 2016 Investor Presentation May 2018 Private and Confidential Paladin Energy | Investor Presentation | 0
Slide 2: 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 res
Slide 3: Paladin: A Global Uranium Leader
Paladin A GLOBAL URANIUM LEADER OWNS LANGER HEINRICH A STRATEGIC TIER ONE MINE BALANCE SHEET STRENGTH AND FLEXIBILITY BEST SENIOR LEVERAGE TO URANIUM UPSIDE Paladin Energy | Investor Presentation | 2
Slide 4: Capital Structure and Major Shareholders
Capital Structure and Major Shareholders Capital structure Recent share price (since re-listing on ASX) Shares Outstanding 1.713Bn A$ Share price A$ 12.0c Market capitalisation A$ 206M 0.2 Market capitalisation US$1 154M 0.19 Cash US$2 51M 0.18 Debt US$2 115M 0.17 Enterprise value US$ 218M 0.16 0.15
Slide 5: Global Uranium Leader
Global Uranium Leader Resources (measured, indicated and inferred, Mlbs) Production capacity (mlbs)1 1,023 28 27 889 23 758 611 447 12 344 10 8 271 6 89 85 84 77 58 18 Uranium One Kazatomprom Cameco BHP Billiton Areva Rio Tinto Paladin Bannerman Berkeley Penninsula Energy Deep Yellow Toro Kazatompro
Slide 6: Langer Heinrich A Strategic Tier One Mine
Langer Heinrich A Strategic Tier One Mine First Quartile All-in Cash Cost1 Lowest cost open-pit mine globally1 Top 10 Uranium Mine 2 by Production 4th largest open-pit Mineral Resources depleted to 30th June 2017 +20 Year Mine Life 3 Class Measured Indicated Tonnes Mt 60.7 21.5 Grade ppm 513 459 Met
Slide 7: What has been happening in uranium?
What has been happening in uranium? Underlying estimated uranium use Growth in China, India and elsewhere means the nuclear based on nuclear power generation power industry is stronger than pre-Fukushima and growing 250 Utilities are “under buying” at a rate of 40-50Mlbs less per 200 year than c
Slide 8: What is about to happen?
What is about to happen? At the current rate of “under buying” utilities will be at “zero” discretionary inventories before 2022 – buying will need to = consumption before then Care and maintenance supply can generally come back online if prices lift to US$40-60/lb range (i.e. 2-3x current price
Slide 9: Langer Heinrich Mine – Moving to Care & Maintenance
Langer Heinrich Mine – Moving to Care & Maintenance Care & maintenance makes the most sense to preserve our strategic tier one resource for a higher uranium price To reduce cash operating costs, Langer Heinrich ceased physical mining in November 2016 maintaining processing feed from medium grade o
Slide 10: Langer Heinrich Mine – Recent Optimisation Success
Langer Heinrich Mine – Recent Optimisation Success Optimisation has resulted in a significant reduction in C1 Cash Costs C1 Cash Cost (US$/lb) 31 Flash Splash (3QFY17) 29.07 - US$0.25/lb stand-alone saving 29 27.71 27 Mining Curtailment 25.88 25 US$/lb 23 Bicarbonate Recovery Plant - US$5-6/lb stand
Slide 11: Langer Heinrich Mine - Future Optimisation Potential
Langer Heinrich Mine - Future Optimisation Potential Innovation to be worked on during care and maintenance to re-envisage LHM as an even lower cost operator for its return to production Back-end Upgrade Project (BUP) U-pgrade The BUP will utilise the existing LHM process across Marenica Energy
Slide 12: Non-Langer Heinrich Portfolio – An Industry Leading Suite of Development Assets
Non-Langer Heinrich Portfolio – An Industry Leading Suite of Development Assets Michelin (100%) Mt Isa (82/91/100%) 91,500ha mineral licence in Labrador Direct 50% interest in 2,724ha of 336,130m of cumulative licences and 82% ownership of linear drilling Canada ASX-listed Summit Resources U
Slide 13: Continued Reduction in Non-LHM Spending
Continued Reduction in Non-LHM Spending Exploration and other controllable costs have been significantly reduced and are expected to hit a "run rate" of c. US$10-11m per year from FY19E 32.9 Reduction of c. 68% Exploration Previously deferred exploration commitments at 5.3 the Michelin project are
Slide 14: Unique Leverage to Uranium
Unique Leverage to Uranium Our fully built capacity plus pipeline provides unique growth potential Potential volume growth within existing capacity (Mlbs) Future Pipeline Mlbs 8 Michelin 7 6 2.50 MT Isa 5 Manyingee 4 7.00 3 2 4.50 1 - LHM in full production (6- KM in full production (18 Total existi
Slide 15: Strategy
Strategy PRESERVE THE VALUE OF STRATEGIC TIER ONE LHM THROUGH CARE AND MAINTENANCE PREPARATION AND CONTINUED DEVELOPMENT OF OPTIMISATION INITIATIVES MAINTAIN KM AND EXPLORATION ON A “MINIMAL EXPENDITURE, CARE AND MAINTENANCE BASIS” MINIMISE CORPORATE AND ADMINISTRATIVE COSTS PREPARE FOR GROWTH Palad
Slide 16: 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 An
Slide 17: Additional Information
Paladin Energy Ltd Additional Information Paladin Energy | Investor Presentation | 16
Slide 18: Board of Directors
Board of Directors Mr Rick Wayne Crabb Mr Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor of Laws and a Master of Business Administration from the University of B. Juris (Hons), LLB, MBA, Western Australia. He practised as a solicitor from 1980 to 2004 specialising in mining,
Slide 19: Resource and Reserve Tables
Resource and Reserve Tables 30 June 2017 30 June 2017 grade % Paladin Mineral Resources M tonnes U3O8 Metal t Ownership % Canada Ore Reserves grade % Metal Ownership Measured Jacques Lake - - - 100 Michelin 17.62 0.097 17,045 100 M tonnes U3O8 t % Rainbow 0.21 0.092 193 100 Malawi Indicated Gear 0.3