Paladin Energy Ltd · ASX:PDN
Paladin Energy — Investor Presentation (October 2010)
36 slides from Paladin Energy's investor presentation, October 2010
Slide 1: Paladin Energy Ltd: The New Energy in the Market
Paladin Energy Ltd The New Energy in the Market Investor Presentation October 2010
Slide 2: Important Information
Important Information This presentation includes certain statements that may be deemed “forward-looking statements”, such as 2011 target production and plans for expansion at our projects. These statements typically contain words such as "expects" and "anticipates" and words of similar import. All s
Slide 3: Competent Persons Statement
Competent Persons Statement The technical information in this announcement that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by David Princep B.Sc. and Andrew Hutson B.E., both of whom are members of the Australasian Institute of Mining and Meta
Slide 4: Presentation Outline
Presentation Outline Paladin – Introduction – Paladin Status Update – Y/E & September 2010 Quarter Highlights – Uranium Outlook – Projects – Summary 4
Slide 5: Introduction to Paladin Energy Ltd
Introduction to Paladin Energy Ltd Diversified shareholder base, dual-listed on the ASX/TSX with a track record of outperforming relevant indices Historical Trading Performance1 • Dual-listed on Australian (ASX) and Toronto (TSX) Stock A$/share Exchanges 12 • Also trades on Munich, Berlin, Stuttgart
Slide 6: Value Proposition
Value Proposition Paladin offers an attractive investment offering at a time when the uranium market outlook remains uniquely positive Uranium Producer Paladin is an (emerging Tier I global) uranium producer Fully Independent Paladin is the only non-aligned pure uranium producer Increasing Paladin h
Slide 7: Presentation Outline
Presentation Outline Paladin – Introduction – Paladin Status Update – Y/E & September 2010 Quarter Highlights – Uranium Outlook – Projects – Summary 7
Slide 8: Paladin’s Suite of Uranium Projects
Paladin’s Suite of Uranium Projects staged for sequential development Deep Yellow Ltd 19.6% NGM Resources Ltd 90.78% voting power (as at 25 October 2010); takeover unconditional KM= Kayelekera Mine LHM= Langer Heinrich Mine 8
Slide 9: Resources and Reserves (September 2010)
Paladin Energy Resources and Reserves (September 2010) Project Measured and Indicated Mineral Inferred Mineral Resources Resources Attributable to Paladin Attributable to Paladin Cut-off ppm U3O8 t U3O8 Mlb U3O8 % U 3O 8 tU3O8 Mlb U3O8 % U 3O 8 Langer Heinrich (100%) 250 67,759 149.4 0.055 10,910 24
Slide 10: Two Operating Uranium Mines in Two Years
Two Operating Uranium Mines in Two Years WORLD FIRSTS ON BOTH OPERATIONS • New process technologies utilised • Langer Heinrich Mine – Alkaline Leach • Kayelekera Mine – Resin-in-Pulp • Gives Paladin a strong competitive edge and valuable internal IP THIS APPROACH HAS MADE PALADIN A WORLD LEADER IN M
Slide 11: A Tier 1 Global Uranium Producer
A Tier 1 Global Uranium Producer Multi-staged parallel activities—developing a complete company • Sustained production Langer Heinrich Stage 2 (3.7Mlb pa) • Ramping up production Kayelekera commercial production achieved, 100% nameplate as of mid-September 2010 • Immediate Expansion Langer Heinrich
Slide 12: Presentation Outline
Presentation Outline Paladin – Introduction – Paladin Status Update – Y/E & September 2010 Quarter Highlights – Uranium Outlook – Projects – Summary 12
Slide 13: Paladin Y/E 2010 Highlights
Paladin Y/E 2010 Highlights June 10 Mar 10 Dec 09 Sept 09 June 10 June 09 Quarter Quarter Quarter Quarter Full Year Full Year Production (lb) – LHM 927,373 928,370 841,995 654,513 3,352,251 2,702,972 +26% Y/Y Production (lb) – KM 515,478 228,996 145,315 74,086 963,875 34,600 +125% Q/Q Total Producti
Slide 14: Financial Highlights
Financial Highlights Financial Position Key Financial Metrics and Debt Summary • C1 costs at LHM maintained at (US$ millions) Year end 30 June, 2009 2010 US$26/lb (June qtr 2010) Revenue 114.8 204.3 YoY Growth 12.7% 78.0% Gross Profit 61.8 72.7 • Industry leading US$55/lb realised Gross Margin 53.8%
Slide 15: September 2010 Quarterly Activities Report
September 2010 Quarterly Activities Report • Quarterly production of 1.36Mlb vs 1.44Mlb from previous quarter • Kayelekera delayed in achieving sustained nameplate until mid September – higher efficiencies and nameplate production achieved after introduction of a resin cleaning circuit • Langer Hein
Slide 16: Presentation Outline
Presentation Outline Paladin – Introduction – Paladin Status Update – Y/E & September 2010 Quarter Highlights – Uranium Outlook – Projects – Summary 16
Slide 17: Global Uranium Production
Global Uranium Production 2000 - 2009 A N D Demand – remains robust D EM Supply – static and not responding to both price and demand As of 1 July 415 493 130 120 315 ? 50 288 110 50 112 100 90 million pounds U3O8 80 70 132 60 114 108.5 107.3 104.5 103 50 94.5 93.7 92.5 91.5 40 RISE 30 PRI CE 20 10 0
Slide 18: World Nuclear Capacity - Growth is Assured
World Nuclear Capacity - Growth is Assured number of reactors proposed to be operating by 2030 Status 1 July 2010 Total 991 vs [898]– 10.4% increase in 12 months Current Nuclear Under Construction Planned Capacity Reactors / (Capacity) 439 (374.8GWe) 59 (60.GWe) [43] 149 (163.2GWe) [133] 178Mlb U3O8
Slide 19: Uranium Price Trends
Uranium Price Trends CY 2009/10/11 Term TT Term UxC Term Average sale price FY2010 Spot Paladin Other TT Spot UxC Spot FY10 FY11 Sourced publications: TT= TradeTechUxC= Ux Consulting * October spot references UXC BAP 19
Slide 20: Uranium Companies
Uranium Companies current global status Companies Operations Producers - 18 countries Tier I • Cameco, AREVA, Rio Tinto, BHP-B, • ~85% of 2009 mine Companies Kazatomprom, Atomredmetzoloto production operating in 8 (ARMZ), Navoi countries takeover Paladin Tier II • Uranium One, Denison, • ~15% of 200
Slide 21: Presentation Outline
Presentation Outline Paladin – Introduction – Paladin Status Update – Y/E & September 2010 Quarter Highlights – Uranium Outlook – Projects – Summary 21
Slide 22: Langer Heinrich Project Location
Langer Heinrich Project Location 22
Slide 23: Langer Heinrich Project
Langer Heinrich Project large resource/reserve upgrade MINERAL RESOURCES 250ppm Cut-off Mt Grade % U3O8 t U3O8 MlbU3O8 Measured Resources 46.7 0.053 24,838 54.71 Indicated Resources 77.6 0.055 42,921 94.54 Measured + Indicated 124.3 0.055 67,758 149.25 Inferred Resources 18.5 0.06 10,910 24.04 MININ
Slide 24: Langer Heinrich: staged growth
Langer Heinrich staged growth • Stage 1 – Alkaline leach, start-up Jan 2007 – design 2.6Mlb pa, CAPEX US$100M 9 • Stage 2 – Full 7 months of nameplate production achieved – design 3.7Mlb pa, CAPEX US$59M 9 • Stage 3 – Expansion – increase to 5.2Mlb pa – CAPEX US$99.5M – construction advancing (70% c
Slide 25: Langer Heinrich: Stage 3 construction status
Langer Heinrich Stage 3 construction status ROM & CRUSHER SCRUBBER BASE CCD 7 CCD7 5m x 12m SCRUBBER ARRIVING ON LHM SITE 25
Slide 26: Langer Heinrich: Operational / Expansion Update
Langer Heinrich Operational / Expansion Update • Qtrly production of 899,735lb vs 927,373lb previous qtr • 97.3% of nameplate achieved with the shortfall resulting from introduction of new pit-f material into the plant – minor modifications have sorted this issue and plant now running steadily at mi
Slide 27: Langer Heinrich Production
Langer Heinrich Production quarter by quarter Stage 2 - 925,000lb 27
Slide 28: Kayelekera Project Location
Kayelekera Project Location M26 Karonga-Chitipa Road Zambia Lake Malawi 5 km 5 mi 28
Slide 29: Kayelekera Geology and Resources
Kayelekera Geology and Resources Pit outline Final Pit Measured Indicated Inferred Grade Grade Grade Mt ppm Metal t Mt ppm Metal t Mt ppm Metal t Resources 3.5 1,241 4,347 17.2 769 13,242 5.5 625 3,433 29
Slide 30: Kayelekera Mine
Kayelekera Mine Design Production Achieved • Ore feed proven to 220tph vs 190tph design • All circuits are consistently operating at design and able to produce 3.3Mlb pa • RIP efficiency 97% versus the June quarter of 85% • Mechanical availability of the plant now at design • Reconciliation of ore b
Slide 31: Kayelekera Mine: Operational Update
Kayelekera Mine Operational Update • Quarterly production of 462,977lb vs 515,478lb from previous quarter • Production plateau at 75% of design resulting from bottleneck associated with resin cleaning. • Expanded cleaning circuit installed and optimized after which design easily achieved (mid-Septem
Slide 32: Kayelekera Mine Production
Kayelekera Mine Production status September 2010 32
Slide 33: Other Projects
Other Projects expanding the pipeline • Mount Isa, Qld (part JV with Summit) – US$10M exploration budget targeted on resource expansion – feasibility start-up late 2011 • Angela, NT (50% JV with Cameco) – resource verification – preliminary scoping study will define exploration objectives • Bigrlyi
Slide 34: Presentation Outline
Presentation Outline Paladin – Introduction – Paladin Status Update – Y/E & September 2010 Quarter Highlights – Uranium Outlook – Projects – Summary 34
Slide 35: Production Outlook
2 Year Production Outlook 15 14 13 Actual Outlook 12 11 Stage 4 10 Stage 3 9 8.5 Mlb 8 7.0+ U3O8 76 5 4.3 4 3 2.70 2 1.71 1 0 07/08 08/09 09/10 10/11 11/12 Langer Heinrich Actual Langer Heinrich Production +Stage 3 unquantified ramp up contribution Kayelekera Actual Kayelekera Production 35
Slide 36: Summary
Summary Key Takeaway: Non-Aligned Pure Uranium Producer with Strong Growth Upside and Proven Track Record OUTLOOK • Priority focus on meeting production objectives • Maintaining strong organic production growth profile • Resource upgrades to support expansions • Strong development potential from pro
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