Slide 1: Paladin Resources Ltd September Quarter 2007 Conference Call
PALADIN RESOURCES LTD John Borshoff, Managing Director/CEO Ron Chamberlain, CFO September Quarter 2007 Conference Call 1 19 November 2007
Slide 2: Disclaimer
Disclaimer 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 resource potential, exploration drilling, exploitation activities and e
Slide 3: Presentation Outline
Presentation Outline • Uranium Supply Overview • Paladin Status • Q3 Financials • Project Update • Future Expectation 3
Slide 4: Building a New Mining Supply Industry
Building a New Mining Supply Industry 2006 to 2030 and beyond 20M 230+--------------------------------------------------------------------------------------------- 30M 190 -------------------------------------------------- 160M 72M 150M 103 103M 40M 90M 2005 WNA forecast 4
Slide 5: Paladin Overview
Paladin Overview • An S&P/ASX 100 company – DUAL LISTED ON TSX • PRODUCTION at Langer Heinrich Uranium Mine (Namibia) – 2.6Mlb nameplate production for 2008 • CONSTRUCTION started on Kayelekera Uranium Project (Malawi) – US$85M already committed and on schedule • M&A ACTIVITY ongoing – Valhalla and
Slide 6: Paladin Project Locations
Paladin Project Locations Advanced Exploration Project Pre Development Project Development of Mine On hold Operating Mine Paladin 50% (PLUS 82% control of Summit) 6
Slide 7: Sales Revenue
Sales Revenue • Sales Revenue of US$26.0M for the Sept 07 quarter • 333,000lb sold at an average realised price of US$78/lb • The pounds sold were sourced from Langer Heinrich production (183,000lb) and third party uranium purchased in the June 07 quarter (150,000lb) • Langer Heinrich production of
Slide 8: Income Statement
Income Statement • Gross profit of US$4.1M for the Sept 07 quarter with Langer Heinrich contributing US$1.8M, no impact from sale of third party uranium purchased in the June 07 quarter • Exploration expenditure of US$3.8M • Finance costs of US$6.8M • Other expenses of US$9.3M, including US$2.9M sal
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Cash and cash equivalents of US$165.8M at 30 Sept 07 • Inventories of US$29.3M including US$4.7M of remaining third party uranium purchased in the June 07 quarter • Net assets of US$1.3bn • Cash inflow from operations of US$7.9M for the Sept 07 quarter from sale of both
Slide 10: Langer Heinrich - Project Update
Langer Heinrich - Project Update performance to date & expectation for April 08 • 6 months ago (April 2007) – plant ramp up/official opening – heat exchangers/tank liners failing and impeding ramp up progress – systematic elimination of bottlenecks/design improvements – metal recovery in all section
Slide 11: Kayelekera - Project Update
Kayelekera - Project Update performance to date & expectation for April 08 • 6 months ago (April 2007) – Development Agreement signed with Govt – 10 year stability period – BFS and EIS finalised and submitted to Govt – ML granted and environmental approvals received – Owner’s construction team estab
Slide 12: Mt Isa - Project Update
Mt Isa - Project Update performance to date & expectation for April 08 • 6 months ago (April 2007) – Paladin 50% JV partner on Valhalla/Skal Deposit – hostile takeover bid made for Summit Resources for balance of assets – Summit Board recommends offer – Areva fight for uranium marketing rights • Tod
Slide 13: Project Pipeline
Project Pipeline assets acquired & projects developed Langer Heinrich Uranium Mining Operation 2012 Late 2008 Inventory U3O8 269 Mlb 13
Slide 14: Production Schedule
Production Schedule plenty of upside on existing major projects Project Production Start Production Vol. (U3O8) million pounds LANGER HEINRICH January 2007 2.60 (Stage 1) (full production Jan 08) KAYELEKERA 4Q 2008 3.30 LANGER HEINRICH December 2008 1.10 (Stage 2) 7.00Mlb Potential to expand these p
Slide 15: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key work programs 07/08 • Langer Heinrich – design and initiate Stage II expansion (2.6Mlb to 3.7Mlb) – vanadium circuit mid 08 – 21,000m drilling to increase resource base • Kayelekera – construction process ongoing – 9,000m resource upgrade drilling • Mt Isa Project
Slide 16: Producing Uranium Companies
Producing Uranium Companies Paladin differentiating itself PRODUCERS - 18 countries • TIER I Companies X AREVA, – Cameco, X BHP, X RIO, X Kazatomprom, ROSATOM, Navoi (~83% of 2006 mine production operating in 9 Countries) • TIER II Companies – PALADIN, URANIUM ONE, DENISON, Heathgate, Mesteña and ot
Slide 17: Contact Details
PALADIN RESOURCES LTD Contact Details Mr John Borshoff Grand Central 1st Floor, 26 Railway Rd (Managing Director/CEO) Subiaco Western Australia 6008 Mobile: +61 (0) 419 912 571 PO Box 201, Subiaco Email: john.borshoff@paladinresources.com.au Western Australia 6904 Telephone: +61 (0) 8 9381 4366 Mr R