Paladin Energy Ltd · ASX:PDN
Paladin Energy — Non-Deal Roadshow (April 2020)
23 slides from Paladin Energy's roadshow presentation, Apr 15, 2020
Slide 1: Paladin Energy Ltd Broker Roadshow
PALADIN ENERGY LTD Broker Roadshow April 2020 Ian Purdy – Chief Executive Officer PALADIN ENERGY LTD
Slide 2: Disclaimer and notes
Disclaimer and notes JORC and NI 43-101 Mineral resources and ore reserves This presentation contains summary information about the Company’s activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be comp
Slide 3: Why Paladin?
Why Paladin? Paladin has streamlined the company with the sole focus on the restart of the globally significant Langer Heinrich operation in mining friendly Namibia Our existing infrastructure, historic mine development and 10-year operations track record provides Paladin an early mover option in an
Slide 4: Strong financial position
Strong financial position • US$35.8M of Unrestricted Cash1,2 provides extended runway for Paladin to execute its strategy • Significantly reduced cash burn with FY2021 forecast < US$10M (FY2020 guidance US$17M) delivered by: • Sale of Kayelekera mine • Optimised care & maintenance costs at Langer He
Slide 5: Langer Heinrich: A Globally Significant Uranium Operation
Langer Heinrich A Globally Significant Uranium Operation PALADIN ENERGY LTD
Slide 6: Langer Heinrich operation overview
Langer Heinrich operation overview • A strategic, tier one mine with a historical production capacity of 5.2Mlb pa U3O8 • Paladin suspended operations in May 2018 due to low uranium prices • Paladin owns 75% (25% owned by CNNC Overseas Uranium Holding Limited) • Fully permitted and licensed with a 1
Slide 7: Namibia is a premier uranium jurisdiction
Namibia is a premier uranium jurisdiction Three globally significant Uranium mines (Husab, Rossing and Langer Heinrich) when at full capacity supply ~15% of the world’s Uranium (~25Mlb pa U3O8) Uranium has been continually produced in Namibia since 1976 under a stable mining and Uranium regulation r
Slide 8: Restart Pre-Feasibility Study complete
Restart Pre-Feasibility Study complete Paladin completed a Restart Pre-Feasibility Study in October 2019: • RC drilling programme provided assurance on high grade mineral resources and stockpiled ore • Geo-metallurgical testwork programme • Detailed production restart plan including costs and ramp u
Slide 9: Restart Pre-Feasibility Study economics
Restart Pre-Feasibility Study economics 12-month lead time to first production after a restart decision is made Cost to Restart Production All in Mine Restart Capital Operations Sustaining Cost Life Intensity1 US$80M 5.2Mlbs pa US$33/lb 19 years US$15/lb US$110M 6.5Mlbs pa2 US$30/lb 17 years US$17/l
Slide 10: Langer Heinrich restart & debottlenecking plan underway
Langer Heinrich restart & debottlenecking plan underway Restart & Debottlenecking Plan is currently underway and focused on: • Pre-Feasibility Study (PFS) outcomes being stress tested to maximise financial returns • Plant reliability and de-risking restart activities • Future operational and financi
Slide 11: Why Uranium?
Why Uranium? Positive Structural Dynamics
Slide 12: Structural supply deficit
Structural supply deficit World Nuclear Association Supply Shortage Graph Stockpile Drawdown Tonnes U Mlb 125,000 250 100,000 200 75,000 150 “Under buying” 50,000 100 25,000 ` 50 ` 0 0 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2011 2012 2013 2014 2015 2016 2017 2018 2019 Current Ca
Slide 13: Current pricing unsustainable
Current pricing unsustainable COVID19 Disruptions Uranium Market Prices 2011-20 $30 $29 US$/lb $28 (US$/lb) Spot U $27 TradeTech Spot Price TradeTech Long-Term Price $26 $100 $25 January 2011 $24 $90 Spot market peaks, $23 Ranger tailings overflow risk December January February March 3Mlb lost produ
Slide 14: Impact of sub-economic pricing
Impact of sub-economic pricing Cumulative Primary Supply Cuts Future Contracted Coverage Rates of US & European Utilities Mlb pa Contract coverage (% of total requirements) 0 120% -5 -10 100% -15 80% -20 -25 60% -30 -35 40% -40 20% -45 ` ` -50 0% 2016 2017 2018 2019 2020 2021 2022 2019 2020 2021 202
Slide 15: Paladin Investment Conclusion
Paladin Investment Conclusion PALADIN ENERGY LTD
Slide 16: Paladin investment conclusion
Paladin investment conclusion Paladin is poised to take 1 Langer Heinrich is 2 Strong Financial 3 advantage of improving competitively positioned Position Uranium market versus other suspended mines • Growing structural supply deficit • 12-months to recommence • Significant runway to execute • Prima
Slide 17: Appendix
Appendix PALADIN ENERGY LTD
Slide 18: Paladin corporate snapshot
Paladin corporate snapshot Market Snapshot ASX: PDN A Supportive Shareholder Base5 Shares on issue 2.027B Geographic split Top 50 holders own 90% of shares Share price (as at 14 April 2020) A$ 0.093c 7% 9% Market capitalisation A$ 188.6M 28% 16% Market capitalisation US$1 116.9M 25% Unrestricted cas
Slide 19: Meet the new Board and CEO
Meet the new Board and CEO Cliff Lawrenson Peter Main Peter Watson Ian Purdy Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Mining executive with deep expertise in Mining and finance professional with Chemical engineer with extensive Highly-respected exe
Slide 20: Meet the new management team
Meet the new management team Anna Sudlow Michael Drake Gary Stoker Andrea Betti Chief Financial Officer Chief Operating Officer Principal Uranium Marketing Company Secretary Consultant (Consultant) Highly qualified CFO with 25 years of Mining Professional with 25 years of Uranium marketing professio
Slide 21: A quality global suite of exploration assets
A quality global suite of exploration assets Mt Isa (100%) • Six Mineral Development Licenses covering 14,011 ha and three Exploration Permits • Largest Uranium deposit in Canada Manyingee Queensland • Potential for future development of 41.5Mlb uranium mine Michelin Status: Pre-development explorat
Slide 22: Resource & reserve tables
Resource & reserve tables Mlb U3O8 Paladin Ownership Mineral Resources Mt Grade ppm U3O8 (100% basis) (%) Namibia Langer Heinrich Measured1 66.2 490 71.9 75 Indicated1 18.8 435 18.0 75 30 June 2019 Inferred1 Stockpiles1 6.3 30.8 420 355 5.8 24.0 75 75 Total Namibia 122.1 445 119.7 75 Canada Measured
Slide 23: Contact Us
CONTACT US HEAD OFFICE T: +61 (0) 8 9423 8117 Level 4, 502 Hay Street E: paladin@paladinenergy.com.au Subiaco Western Australia 6008 www.paladinenergy.com.au PALADIN ENERGY LTD This presentation has been authorised for lodgement by Ian Purdy, CEO, Paladin Energy Limited