John Borshoff Managing Director/CEO

Transcription

1 Paladin Energy Ltd The New Energy In The Market John Borshoff Managing Director/CEO Annual General Meeting 26 November

2 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 events or developments that Paladin Energy Ltd (the Company ) expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forwardlooking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 Presentation Outline Paladin Statust Uranium Market (Dustin Garrow) Projects Update Langer Heinrich (Wyatt Buck) Kayelekera Project (John Borshoff) Social Development Component - Malawi (Neville Huxham) Future Outlook 3

4 Paladin Status overview Achieving stated operational objectives Langer Heinrich produced 650,554lb U 3 O 8 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 production Kayelekera at final stages of construction. Commissioning/ramp up Mar Qtr Seeking to establish a global mining footprint Mt Isa Project yields expanded resource base Angela/Pamela JV Project tenement granted New State Government elected in Western Australia with pro uranium mining policy positive implications for Manyingee Project Strong cash position to support growth 4

5 Paladin s Suite of Uranium Properties staged for sequential development Construction of Mine Reserves of 25Mlb Resources of 35Mlb Advanced Exploration Project Resources of 23Mlb Pre Development Project Resource - 85Mlb pro uranium pro uranium Re-activate Evaluation Manyingee Resource of 24Mlb pro uranium New Project Angela/Pamela Deposits Historical ~28Mlb Operating Mine plus expansion Reserves of 65.8Mlb Resources of 164Mlb Deep Yellow 19.29% Attributable Pounds Paladin 100% Paladin 85% Paladin 42.06% Paladin 50% (plus 81.99% control of Summit in its 100% owned properties) Paladin 50% JV Cameco 5

6 URANIUM MARKET Dustin Garrow Marketing / Paladin Nuclear Ltd 6

7 World Nuclear Capacity (October 2008) 439 Reactors 373,247 MWe 30 Countries 167 million pounds U 3 O 8 required

8 Reactors Under Construction (October 2008) Global: 36 Reactors 29,848 Mwe China: 7 / 6,700 India: 6 / 2,976 Japan: 2 / 2,285 Russia: 7 / 4,810 South Korea: 3 / 3,000

9 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 / 15,000

10 Reactors - Proposed (October 2008) 232 Reactors 211,575 Mwe 34 Countries

11 Global Uranium Production/Demand Supply is flat despite strong price/demand growth Cumulative planned and proposed reactor builds (by year of announcement) U 3 O 8 Million Pounds Production Spot price 2006 Production 102.5Mlb Down 5% 2007 Production 108.0Mlb Up 5% 108

12 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 Dome / Rosita) First Uranium (Ezulwini) KazAtomProm decreased 2009 forecast by 14% UxC had been forecasting 2008 global production of 121.8Mlb U 3 O 8 but more likely around 110Mlb - 112Mlb U 3 O 8 Cigar Lake delay due to mine flooding (October 2006) Olympic Dam expansion delay

13 Uranium Price Trend Present $ $ US$/lb U3O8 $ $ $ $ $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $ $ $ $ $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $10.00 Jan-07 Jan-08 Jan-09 Average U3O8 Spot Price Long-Term U3O8 Price

14 Spot Uranium Market Through mid-november, 2008 spot market volume exceeded 37.0Mlb; September volume set new monthly record of over 8.3Mlb transacted Nuclear utilities remain the largest single buying group with primary producers making large purchases China Guangdong Nuclear Power entered spot market for the delivery of 800 MTU (2.1Mlb) by mid-2009 Recent spot price rise from $44/lb to $55/lb reflecting favourable market fundamentals

15 Term Uranium Market Long-Term price indications began 2008 at $95/lb but declined through the year to current level of $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 initial reactor fuel loadings (new build) expected On-going uranium supply constraints expected to place upward pressure on term price INDIA (?)

16 LANGER HEINRICH UPDATE Wyatt Buck GM - Production 16

17 STAGE I AT DESIGN PRODUCTION STAGE II EXPANSION ON SCHEDULE STAGE III EXPANSION IN DESIGN PHASE LARGE RESOURCE UPGRADE

18 LHU Temporary Tailings Dam 2 Nov 2008

19 Pit A & B 2 Nov 2008

20 Langer Heinrich Project large resource/reserve upgrade MINERAL RESOURCES 250ppm Cut-off Mt Grade % U 3 O 8 t U 3 O 8 Mlb U 3 O 8 Measured Resources , Indicated Resources , Measured + Indicated , % increase Inferred Resources , % increase JORC / NI compliant MINING US$60/lb U 3 O 8 250ppm Cut-off Mt Grade % U 3 O 8 Tonnes U 3 O 8 Proven Ore Reserves ,924 (39.50Mlb) Probable Ore Reserves ,950 (26.34Mlb) Total ,874 (65.84Mlb) 75% increase JORC / NI compliant 20

21 Production - quarter by quarter Last 4 quarters - production in lbs U 3 O 8 800, , , , , ,000.0 Accounting Drummed Design 200, , Oct-Dec/07 Jan-Mar/08 Apr-June/08 July-Sept/08

22 Production month by month Production - lbs U3O8 300, , , , ,000 Accounting drumming design 50,000 - Apr May June July Aug Sept Oct

23 Production 5 months at design production last 5 months Acc't prod drummed Nameplate June July Aug Sept Oct

24 Plant Performance Cash Unit Cost Unit Cost July Aug Sept Oct

25 Stage II Expansion 2 Nov 2008

26 Questions?

27 Operations Summary 1. Safety performance, both Conventional and Radiation, acceptable performance with steady improvement 2. All critical Environmental aspects covered by 3 rd parties World wide experts 3. 5 consecutive months at design production levels 4. Projects, both optimization and Stage II, are effectively raising production capacity through increased tonnage and higher efficiencies 5. Stage III in progress, evaluating all options

28 Kayelekera Uranium Project Statust Paladin (Africa) Ltd

29 Kayelekera Uranium Project current status US$200M CAPEX (US$180M committed to Oct 08) on time and on budget commissioning/ramp i i up March Qtr 3.3Mlb U 3 O 8 pa using acid leach/resin in Pulp Plant erection advanced stage Exploration Targets Karonga 1700 people on site high safety achievement 2.9Mhrs injury free Long lead capital items power plant commissioned, SAG mill installed major acid plant components on site Tailings Dam and other water structure construction ongoing Open-pit pre-strip underway Developing strong uranium experienced operational team. Commissioning team in place 29

30 Getting ready for commissioning Conveyors Mill and Pre-Leach Paladin Tailings (Africa) Thickener Ltd Crusher (mineral sizer)

31 Paladin (Africa) Ltd Social Development and Country Affairs Neville Huxham Country Manager - Malawi

32 Malawi - Social Management Objectives Strategic Objectives Protecting Paladin s Good Name Enhancing Our Corporate Reputation Maintaining Project Value Engaging with civil societies (NGO s) and local communities and preserving accord Managing Government and key stakeholder relationships to promote Company interests. Maintaining an early warning system to detect and deal with issues before they become incidents.

33 Paladin & Corporate Social Responsibility Corporate Reputation Social Mandate Exhibiting positive Values 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 development opportunities.

34 Social Responsibility Program Focus Better food production Lack of irrigation and subsistence farming lead to crop failure, poverty and famine. Health Issues HIV/AIDS, tuberculosis and malaria are major killers in Malawi. Access to Education Creating the foundation for a productive and fulfilling life. Fostering Business To provide job opportunities and foster local business opportunities to supply Paladin and others with goods and services.

35 Health Clinic Work in Progress

36 Community Development Team In November the first activities started at the renovated clinic in Kayelekera village: 156 children were vaccinated against measles. A clinician i i has been transferred dto the Kayelekera clinic from Wiliro health centre (12km away). The first HIV/AIDS clinic was conducted at the Kayelekera clinic. A regular weekly General Clinic with doctor and nurses - will begin operating from Thursday 27 Paladin s two specialist health care November. workers are active in the Kayelekera region and have successfully arranged for the permanent posting by the Government s Health Department of a healthcare worker to the renovated clinic at Kayelekera.

37 Garnet Halliday Karonga Water Supply Project - Update Agreement concluded with Northern Region Water Board enabling final design for Project. Upgraded water supply to provide sustainable, safe drinking for Karonga Town s projected population of 45,000 people. Plan to utilise local labour (job creation/income generation).

38 Presentation Outline FUTURE OUTLOOK 38

39 4 Year Production Outlook Mlb U 3 O Actual Forecast / / / / /12 Langer Heinrich Production Kayelekera Production 39

40 Project Pipeline assets acquired & projects developed 2012 End 2008 Langer Heinrich Uranium Mining Operation Inventory U 3 O Mlb New production with staged organic growth 2008 to

41 Paladin Offers Excellent Upside key outcomes for 2008/09 Langer Heinrich (Namibia) achieve 1.4Mlb to 1.55Mlb for H (CY) complete Stage II expansion (2.6Mlb to 3.7Mlb pa) early 2009 planning/design for Stage III expansion produce 3.1Mlb U 3 O 8 for 12 month period end June 09 Kayelekera (Malawi) construction completed end 2008 produce 0.3Mlb U 3 O 8 by June 09 Mt Isa Project (Queensland - Australia) new resource estimate Dec Qtr complete prefeasibility study Angela/Pamela Uranium Deposit (Northern Territory Australia) commence field work June quarter 09 Manyingee (Western Australia) exploration start up Significant opportunity to increase overall resource base in 08/09 41

42 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 FOCUSSED M&A ACTIVITY opportunity to establish a global uranium mining house URANIUM MARKET STRENGTHENING STRONG BALANCE SHEET 42

43 PALADIN ENERGY LTd Questions? 43

44 Proxy Votes Received For Against Abstain % of vote in favour Resolution 1 213,759, ,414,386 1,327, % Resolution 2 238,738,315 2,124, , % Resolution 3 213,926,685 15,243, , %