Paladin Energy Ltd · ASX:PDN
Paladin Energy — Paladin Resources — Shareholder Meeting (November 2004)
36 slides from Paladin Energy's shareholder meeting presentation, Nov 23, 2004
Slide 1: Presentation to AGM cover letter
PALADIN RESOURCES LTD 245 CHURCHILL AVE, SUBIACO WESTERN AUSTRALIA 6008 PO BOX 201, SUBIACO WESTERN AUSTRALIA 6904 A.C.N. 061 681 098 TELEPHONE: (+61 8) 9381 4366 FAX: (+61 8) 9381 4978 EMAIL: paladin@paladinresources.com.au Web: www.paladinresources.com.au Ref:F5543 23 November 2004 The Company Ann
Slide 2: Annual General Meeting
PALADIN RESOURCES LTD ANNUAL GENERAL MEETING 23rd November 2004
Slide 3: Presentation Outline
Presentation Outline • Uranium & Supply and Demand • Paladin Status & Key Project Situation • Future Outlook
Slide 4: The Best Uranium Junior in the World
THE BEST URANIUM JUNIOR IN THE WORLD
Slide 5: Performance Profile
Performance Profile 12 Month Trading Chart 12 month range 1.7c-70c Recent share price 55 c Best performing stock for year to June 2004 - 1127% increase (WA Business News, TRUDO Total Shareholder Return Survey)
Slide 6: Uranium History
URANIUM HISTORY
Slide 7: Uranium Exploitation Global History
Uranium Exploitation Global History 60 years
Slide 8: Uranium Price History & Key Events
Uranium Price History & Key Events $20.25
Slide 9: Key Activity Periods
g (ft FEM CON Sacto -100's of Coys. | ¢ Few Suppliers Few Majors: Large & Small Protocol si] Few Juniors Prospectors Multinationals Olitlook Oil Coys. Specialist U Coys. I I ! I ' 1 1 ! I i I I 1 1 1 1 ' NUEXCO Bubble T =] T T T T T T T T T T T 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995
Slide 10: Supply and Demand
SUPPLY AND DEMAND
Slide 11: World Nuclear Power Capacity
World Nuclear Power Capacity (June 2003) • 440 Reactors In Operation – 360,500 MW of electricity (MWe) • 35 Reactors under construction – 28,000 MWe • 25 Reactors planned – 30,000 MWe • 31 Countries- 16% of world electricity URANIUM REQUIREMENT 2003 – 170M/lb U3O8 (77,700t)
Slide 12: World Supply & Demand Scenario
World Supply & Demand Scenario
Slide 13: World Uranium Mine Production
World Uranium Mine Production Actual vs Required (1990-2015) (Source – ZB Marketing, Denver, USA) (Source – ZB Marketing, Denver, USA)
Slide 14: World Uranium Production
World Uranium Production Scheduled vs. Required (Source – ZB Marketing, Denver, USA)
Slide 15: Uranium Producers
Uranium Producers State of the Global Industry • Supplier base severely rationalised over 20 year period – low uranium prices – no production incentives – maintain viability via aggregation • 50% of production – 4 suppliers – mixture of public, government and private companies and by-product produce
Slide 16: Paladin Status
PALADIN STATUS
Slide 17: Capital Structure
Capital Structure 12 Month Trading Chart Ordinary Shares 350M 12 month trading range 1.7-70c Recent share price 55 c Ave monthly trading vol (Nov 03 - Sept 04) 40M shares Market Capitalisation $190M Best performing stock for year to June 2004 - 1127% increase (WA Business News, TRUDO Total Sharehold
Slide 18: Junior Uranium Companies
Junior Uranium Companies (on world scene) COMPANIES STATUS PROJECT EXCHANGE MARKET CAP LOCALITIES PALADIN 3 Advanced Australia / C$175 (Emerging Producer - 2,000t) ASX Feasibility Projects Africa (A$190M) 1 Advanced SOUTHERN CROSS Australia TSX C$61M Project (on hold) IUC Exploration play Canada TSX
Slide 19: Uranium Project Acquisition
Uranium Project Acquisition Strategy – accumulation in downturn
Slide 20: Paladin Assets
. is Deposit ee Deposit (Malawi) Manyingee Deposit (Australia) Oobagooma Deposit (Australia) Frome Projects (Australia) (for project and corporate » Manyingee opportunities) * Oobagooma ® Africa ® Australia * Frome
Slide 21: 12 Month Highlights
12 Month Highlights • Langer Heinrich Uranium Project (Namibia) – bankable feasibility commenced April 04 – resource upgraded – positive implications – mid 2006 production start up - perfect timing – project funding support • Kayelekera (Malawi) – improved project economics - revived interest – meta
Slide 22: Cash Position
Cash Position Source AUD Paladin (cash in hand) $5,500,000 Société Générale +$1,500,000 (loan funds) TOTAL $7,000,000
Slide 23: Langer Heinrich Project Location Map
Langer Heinrich Project Location Map
Slide 24: Langer Heinrich Uranium Project, Namibia
Langer Heinrich Uranium Project Namibia
Slide 25: Langer Heinrich Drilling – Detail One Stats & Status
Langer Heinrich Drilling – Detail One Stats & Status • 6521m RC drilling 166 holes – 144 infill holes in D1 6521m – 16 holes regional exploration – 6 holes for geotech & metallurgical • 2.5 month program ( Sept to mid Nov) • Sample analysis – down hole radiometric logging with geochemical verificati
Slide 26: Langer Heinrich Project Resources Upgraded
Langer Heinrich Project Resources Upgraded & now drill confirmed • Total Mineral Resources (300ppm cut off) 46.9Mt @ 0.070% U3O8 - 32,988t U3O8 (previously 42.7Mt @ 0.076% U3O8 - 32,300t U3O8) • Total Mineral Resources (500ppm cut off) 22.8Mt @ 0.103% U3O8 - 23,900t U308 (previously 21.2Mt @ 0.113%
Slide 27: Updated Detail1 Resources
Langer Heinrich Project Updated Detail1 Resources • Total Mineral Resources (500ppm cut off) – 11.6Mt @ 0.099% U3O8 – 11,469t U308 • Option available to marginally increase annual production and/or minelife to 15 years plus MINE MODEL OPTIMISATION WORK NOW STARTED FOR BFS
Slide 28: Bankable Feasibility Study
Bankable Feasibility Study Work Execution Schedule (to Mar 05)
Slide 29: Langer Heinrich Uranium Project
Langer Heinrich Uranium Project • Uranium resource 11,100t contained U3O8 @ 0.11% • Robust financials (mining 1,000tpa/10 yrs*) @ US$20.0/lb U3O8 - NPV10% US$83M IRR 47% @ US$22.5/lb U3O8 - NPV10% US$110M IRR 87% • BFS underway (March 05 completion) • Capex US$45M - construction 12 months • Producti
Slide 30: 11600t of at 0.15% eU,0,
11600t of at 0.15% eU,0, : (giant UK power utility - $9m spent)
Slide 31: Kayelekera Uranium Project
Kayelekera Uranium Project • Uranium Resource 10,000t contained U3O8 @ 0.14% • Economic Study Updated (mining 1,000tpa/10 yr) @ US$20.0/lb U3O8 - NPV10% US$55M IRR 32% @ US$22.5/lb U3O8 - NPV10% US$86M IRR 43% • Metallurgical Drilling Underway – for BFS planning • BFS Start up Mid 2005 – 18 months /
Slide 32: Expectations In Next 6 Months
Expectations In Next 6 Months • Paladin – achieve recognition in global arena – expect uranium in US$25 to US$30/lb range • Langer Heinrich Uranium Project – Bankable Feasibility Study completed – project finance in place – marketing strategy finalised • Kayelekera Uranium Project – Technical and ec
Slide 33: Project Development Schedule
Project Development Schedule The building blocks BFS ~ US$2M CONSTRUCTION US$45M PRODUCTION – 2.2M lb pa (1,000 TPA) - 10 YEAR PLUS PRE-FEASIBILITY PRODUCTION BFS ~ US$2M CONSTRUCTION US$55M 1,000 TPA - 10 YEAR UPDATE GLOBAL EXPLORATION (START WHEN U $30/LB) - IDENTIFY NEW PROJECT OPPORTUNITIES PRE-
Slide 34: Project Development Schedule Vs Uranium Outlook
Project Development Schedule Vs Uranium Outlook BFS ~ US$2M CONSTRUCTION US$45M PRODUCTION – 1,000 TPA - 10 YEAR PLUS PRE-FEASIBILITY PRODUCTION BFS ~ US$2M CONSTRUCTION US$55M 1,000 TPA - 10 YEAR UPDATE GLOBAL EXPLORATION (START WHEN U $30/LB) - IDENTIFY NEW PROJECT OPPORTUNITIES PRE-FEASIBILITY CO
Slide 35: Conclusion
Conclusion become a significant U producer on world scene • Focused uranium energy company – resources of 110M pounds in-ground in 4 deposits – strength through geographic diversification – 2 projects NPV(10%) of A$172M (US$133M) @ US$20.0/lb NPV(10%) of A$243M (US$187M) @ US$22.5/lb • Quality proje
Slide 36: Paladin Resources Ltd Emerging Uranium Producer
PALADIN RESOURCES LTD EMERGING URANIUM PRODUCER November 2004 END
Paladin Resources — Shareholder Meeting (November 2004) on 6ix