Paladin Energy Ltd · ASX:PDN
Paladin Energy — Shareholder Meeting (November 2008)
44 slides from Paladin Energy's shareholder meeting presentation, Nov 26, 2008
Slide 1: The New Energy In The Market
Paladin Energy Ltd The e New Energy e gy In The e Ma Market et John Borshoff – Managing Director/CEO Annual General Meeting 1 26 November 2008
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 • Paladin P l di St Status t • Uranium Market (Dustin Garrow) • Projects Update – Langer Heinrich (Wyatt Buck) – Kayelekera K l k P Project j t (John (J h Borshoff) B h ff) – Social Development Component - Malawi (Neville Huxham) • Future F t re Outlook O tlook 3
Slide 4: Paladin Status
Paladin Status overview • Achieving stated operational objectives – Langer Heinrich produced 650,554lb U3O8 Sept Qtr – at design – Langer Heinrich Stage II expansion will be commissioned Mar Qtr – Langer Heinrich resources and reserves increased substantially to support long mine life at expanded pr
Slide 5: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties staged g for sequential q development p Advanced Exploration Pre Development Project j Project Resources of 23Mlb Resource - 85Mlb Construction of Mine Reserves of 25Mlb Resources of 35Mlb pro uranium pro uranium Re-activate Evaluation Manyingee Resource of pro
Slide 6: Uranium Market
URANIUM MARKET Dustin Garrow Marketing / Paladin Nuclear Ltd 6
Slide 7: World Nuclear Capacity
World Nuclear Capacity (October 2008) 439 Reactors 373,247 MWe 30 Countries 167 million pounds U3O8 required
Slide 8: Reactors Under Construction
Reactors Under Construction (October 2008) Global: 36 Reactors 29,848 Mwe China: 7 / 6,700 6 700 India: 6 / 2,976 Japan: 2 / 2,285 Russia: 7 / 4,810 , South Korea: 3 / 3,000
Slide 9: Reactors - Planned
Reactors - Planned (October 2008) Global: 99 Reactors 108,675 Mwe China: , 26 / 27,620 India: 10 / 9,760 Japan: 11 / 14 ,945 Russia: 12 / 14,340 South Korea: 5 / 6,600 United States: 12 / 15 15,000 000
Slide 10: Reactors - Proposed
Reactors - Proposed (October 2008) 232 Reactors 211,575 Mwe 34 Countries
Slide 11: Global Uranium Production/Demand
Global Uranium Production/Demand Supply is flat despite strong price/demand growth Cumulative planned and proposed reactor builds (by year of announcement) 112 120 Production 1996-2007 50 222 316 110 50 108.9 108 100 104.7 102.5 90 Million Pounds U 3O8 92.8 91.5 94.5 93.7 92.6 91 80 87.7 80 8 80.8 7
Slide 12: Uranium Production
Uranium Production • Announced production cut-backs/start-up delays – Cameco (McArthur River / Rabbit Lake / U.S. ISR / Inkai) – UraniumOne (Dominion closure) – Denison (White Mesa / Midwest) – Uranium Resources ((Kingsville g Dome / Rosita)) – First Uranium (Ezulwini) – KazAtomProm decreased 2009 f
Slide 13: Uranium Price Trend
Uranium Price Trend 2007 - Present $140.00 $140.00 $130.00 $130.00 $120.00 $120.00 $110.00 $110.00 $100.00 $100.00 US$/lb U3O8 $90.00 $90.00 $80.00 $80.00 $70.00 $70.00 $60.00 $60.00 $50.00 $50.00 $40.00 $40.00 $30.00 $30.00 $20.00 $20.00 $10.00 $10.00 Jan-07 Jan-08 Jan-09 Average U3O8 Spot Price Lo
Slide 14: Spot Uranium Market
Spot Uranium Market • Through mid-November, 2008 spot market volume exceeded 37.0Mlb; 37 0Mlb; September volume set new monthly record of over 8.3Mlb transacted • Nuclear N l utilities tiliti remain i the th largest l t single i l buying b i group with ith primary producers making large purchases •
Slide 15: Term Uranium Market
Term Uranium Market • Long-Term price indications began 2008 at $95/lb but declined through the year to current level of $70/lb. $70/lb • Anticipate increased buying activity commencing early 2009 as nuclear utilities look to cover forward uranium needs (2010/2011 and beyond) • Purchase uranium for
Slide 16: Langer Heinrich Update
LANGER HEINRICH UPDATE Wyatt Buck GM - Production 16
Slide 17: Stage I at design production, Stage II and III expansions
STAGE I AT DESIGN PRODUCTION STAGE III EXPANSION IN DESIGN PHASE STAGE II EXPANSION ON SCHEDULE LARGE RESOURCE UPGRADE
Slide 18: LHU Temporary Tailings Dam
LHU Temporary Tailings Dam 2 Nov 2008
Slide 19: Pit A & B
Pit A & B 2 Nov 2008
Slide 20: Langer Heinrich Project large resource/reserve upgrade
Langer Heinrich Project large g resource/reserve upgrade pg MINERAL RESOURCES 250ppm Cut-off Mt Grade % U3O8 t U 3 O8 Mlb U3O8 Measured Resources 32.8 0.06 19,582 43.158 Indicated Resources 23.8 0.06 13,278 29.260 Measured + Indicated 56.4 0.06 32,858 72.418 46% increase Inferred Resources 70.7 0.06
Slide 21: Production - quarter by quarter
Production - quarter by quarter Last 4 q quarters - production p in lbs U3O8 800,000.0 700,000.0 600,000.0 500,000.0 Accounting 400,000.0 Drummed Design 300,000.0 200,000.0 100 000 0 100,000.0 0.0 7 8 8 8 /0 /0 /0 /0 ec ar pt e un M Se -D r-J n- ct ly- Ja O Ap Ju
Slide 22: Production – month by month
Production – month by month Production - lbs U3O8 300,000 250,000 200,000 Accounting 150,000 drumming design 100,000 50,000 - Apr May June July Aug Sept Oct
Slide 23: Production – 5 months at design
Production – 5 months at design production last 5 m onths 120.0 100.0 80.0 Acc't prod 60.0 drummed Nameplate 40.0 20.0 - June July Aug Sept Oct
Slide 24: Plant Performance – Cash Unit Cost
Plant Performance – Cash Unit Cost Unit Cost 35.00 30.00 25.00 20.00 15.00 5 00 10.00 5.00 0.00 July Aug Sept Oct
Slide 25: Stage II Expansion
Stage Il Expansion—“% 2 Nov 2008 — >= ad
Slide 26: Questions?
Questions?
Slide 27: Operations Summary
Operations Summary 1. Safety performance, both Conventional and Radiation, acceptable performance with steady improvement 2. All critical Environmental aspects covered by 3rd parties – World wide experts 3. 5 consecutive months at design production levels 4. Projects, both optimization and Stage II,
Slide 28: Kayelekera Uranium Project Status
Kayelekera Uranium Project St t Status Paladin (Africa) Ltd
Slide 29: Kayelekera Uranium Project current status
Kayelekera Uranium Project current status • US$200M CAPEX – (US$180M committed to Oct 08) Exploration – on time and on budget Targets – commissioning/ramp i i i / up March M h Qtr Qt – 3.3Mlb U3O8 pa using acid leach/Resin in Pulp Karonga • Plant erection advanced stage – 1700 people on site – high
Slide 30: Getting ready for commissioning
Getting ready for commissioning Conveyors Mill and Pre-Leach Crusher Tailings Paladin (Africa)Thickener Ltd (mineral sizer)
Slide 31: Social Development and Country Affairs
Social Development and Country Affairs Neville Huxham Country Manager - Malawi Paladin (Africa) Ltd
Slide 32: Malawi - Social Management Objectives
Malawi - Social Management Objectives Protecting g Paladin’s Good Name Strategic Enhancing Our Corporate Reputation Objectives j Maintaining Project Value • Engaging with civil societies (NGO’s) and local communities and preserving accord • Managing Government and key stakeholder relationships to pr
Slide 33: Paladin & Corporate Social Responsibility
Paladin & Corporate Social Responsibility Corporate Reputation Social Exhibiting positive Values Mandate Cultural Sensitivity • Increasing social capital and creating shareholder wealth are not divergent objectives. • Enhancing social mandate makes good business sense by opening doors and creating d
Slide 34: Social Responsibility Program Focus
Social Responsibility Program Focus Lack of irrigation and subsistence farming lead to crop failure, poverty and famine. Better food production HIV/AIDS, tuberculosis and malaria are major killers in Malawi. Malawi Health Issues Creating the foundation for a Access to productive and fulfilling life.
Slide 35: Health Clinic Work in Progress
Health Clinic Work in Progress
Slide 36: Community Development Team
Community Development Team • In November the first activities started at the renovated clinic in Kayelekera village: – 156 children were vaccinated against measles. – A ‘clinician’ ‘ li i i ’ hhas b been ttransferred f d tto th the Kayelekera clinic from Wiliro health centre (12km away). – The first
Slide 37: Karonga Water Supply Project - Update
Garnet Halliday Karonga Water Supply Project j - Update p • Agreement concluded with Northern Region Water B Board d enabling bli final fi l design d i for f Project. P j t • Upgraded water supply to provide sustainable, safe drinking for Karonga Town Town’s s projected population of 45,000 people.
Slide 38: Future Outlook
Presentation Outline FUTURE OUTLOOK 38
Slide 39: 4 Year Production Outlook
4 Year Production Outlook 10 9.3 9 8.4 Actual Forecast 8 7 6.6 6 Mlb 5 U3O8 4 3 35 3.35 3 2 1.71 1 0 2007/08 2008/09 2009/10 2010/11 2011/12 Langer Heinrich Production Kayelekera Production 39
Slide 40: Project Pipeline
Project Pipeline assets acquired q &p projects j developed p Langer Heinrich Uranium Mining 2012 Operation p End 2008 Inventory U3O8 330 Mlb New production with staged t d organic i growth 2008 to 2010 40
Slide 41: Paladin Offers Excellent Upside
Paladin Offers Excellent Upside key y outcomes for 2008/09 • Langer Heinrich (Namibia) – achieve 1.4Mlb to 1.55Mlb for H2 2008 (CY) – complete Stage II expansion (2.6Mlb to 3.7Mlb pa) early 2009 – planning/design for Stage III expansion – produce 3.1Mlb U3O8 for 12 month period end June 09 • Kayelek
Slide 42: Conclusion
Conclusion • MAINTAINING STRONG PRODUCTION PROFILE FY 08/09 • CONTINUED EXPANSION AT LANGER HEINRICH (STAGE III) • SUSTAINED DEVELOPMENT FROM PROJECT PIPELINE – progress Mt Isa and Angela Projects for development start 2012+ • FOCUSSED M&A ACTIVITY – opportunity to establish a global uranium mining
Slide 43: Questions?
PALADIN ENERGY LTd Q Questions? ti ? 43
Slide 44: Proxy Votes Received
Proxy Votes Received For Against Abstain % of vote in favour R Resolution l ti 1 213 759 398 213,759,398 26 414 386 26,414,386 1 327 821 1,327,821 88 5% 88.5% Resolution 2 238,738,315 2,124,394 638,894 98.9% Resolution 3 213,926,685 15,243,917 560,677 93.1%