PALADIN RESOURCES LTD. John Borshoff, Managing Director/CEO Ron Chamberlain, CFO

Transcription

1 PALADIN RESOURCES LTD John Borshoff, Managing Director/CEO Ron Chamberlain, CFO September Quarter 2007 Conference Call 19 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 Resources 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 forwardlooking 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 forward-looking 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 Uranium Supply Overview Paladin Status Q3 Financials Project Update Future Expectation 3

4 Building a New Mining Supply Industry 2006 to 2030 and beyond M M 30M 150M 160M 103M 40M 90M 2005 WNA forecast 4

5 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 Summit (Australia) Most comprehensive uranium team outside majors geological, engineering (ops & construction), environmental, marketing Globally a leading emerging uranium supply company with a uranium trading subsidiary to enhance PDN position Uranium spot price US$93.00/lb U 3 O 8 5

6 Paladin Project Locations Advanced Exploration Project Pre Development Project Development of Mine On hold Operating Mine Paladin 50% (PLUS 82% control of Summit) 6

7 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 274,000lb delivered to all three conversion facilities without previous transport delays 35,000lb remain of third party uranium purchased which is scheduled for delivery into sales contracts in Dec 07 quarter 7

8 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 sales contract expense on the remaining 35,000lb of third party uranium purchased Loss after tax of US$14.5m or US$0.02 per share for the Sept 07 quarter 8

9 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 Langer Heinrich and third party uranium purchased Cash outflow from investing of US$26.3M relating to increased investment in Deep Yellow now 14.34%, Kayelekera mine construction and exploration expenditure 9

10 Langer Heinrich - Project Update performance to date 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 sections of flowsheet need major improvement alkaline leach process proving successful production (Q1/07) - 30,000lb U 3 O 8 Today (Oct 2007) & expectation for April 08 production ramp up and remediation making good progress heat exchangers stable recoveries improved significantly in scrubbing, leaching, CCD (from Oct) sections IX columns the remaining major bottleneck additional units ordered Aug 07 production (Q2/07, Q3/07) - 375,000lb U 3 O 8 6 months time (April 2008) plant operating at nameplate (2.6Mlb U 3 O 8 annual) from January 2008 cost optimization process commenced/new heat exchangers installed additional IX columns installed December 2007 Stage II expansion started - 2.6Mlb to 3.7Mlbs U 3 O 8 annually expected 6 month production (Q4/07 & Q1/08) 1,020,000lb U 3 O 8 10

11 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 established (moved from Langer Heinrich Project) pioneer works started on site Today (October 2007) long lead capital items ordered and deliveries on schedule EPCM manager and mining contractor appointed construction underway civil and earthworks started 300 people on site social development programmes in formulation court action withdrawn 6 months time (April 2008) erection of treatment plant underway open pit mining underway GM Operations appointed and operational team being established 11

12 Mt Isa - Project Update performance to date 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 Today (October 2007) Mt Isa Uranium province controlled by Paladin & expectation for April 08 project technically reassessed to attain geological and uranium target relevancy extensive drilling underway at Valhalla and Skal deposits base line environmental studies initiated Areva actions continue (not material to Paladin) 6 months time (April 2008) intensive drilling of Valhalla and Skal for resource expansion and classification focussed metallurgical testwork underway environmental work ongoing ongoing lobbying of QLD government re uranium policy preparing for Pre-Feasibility Study 12

13 Project Pipeline assets acquired & projects developed 2012 Langer Heinrich Uranium Mining Operation Late 2008 Inventory U 3 O Mlb 13

14 Production Schedule plenty of upside on existing major projects Project Production Start Production Vol. (U 3 O 8 ) million pounds LANGER HEINRICH (Stage 1) January 2007 (full production Jan 08) 2.60 KAYELEKERA 4Q LANGER HEINRICH (Stage 2) December Mlb Potential to expand these projects to a total production of 8Mlb to 9Mlb U 3 O 8 for 2009/10 14

15 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 excellent potential to increase current resource base extensive drilling (50,000m) planned to prepare for a BFS ongoing metallurgical testwork and start environmental baseline work Bigrlyi Project 52,000m focussed on excellent target good opportunity to increase current resource base Significant opportunity to increase overall resource base in 07/08 15

16 Producing Uranium Companies Paladin differentiating itself PRODUCERS - 18 countries TIER I Companies X X X X Cameco, AREVA, RIO, BHP, Kazatomprom, ROSATOM, Navoi (~83% of 2006 mine production operating in 9 Countries) TIER II Companies PALADIN, URANIUM ONE, DENISON, Heathgate, Mesteña and other producers (~17% 2006 production in 4 of above & 9 other countries) NON PRODUCERS TIER III Companies - Speculative Dozen or so companies with resources >20Mlb U 3 O 8 resources operating in 9 countries (6 new) TIER IV Companies - Highly Speculative 100 s of companies X 2008 Production Downgrade 16

17 PALADIN RESOURCES LTD Contact Details Mr John Borshoff (Managing Director/CEO) Mobile: +61 (0) Mr Ron Chamberlain (CFO) Mobile: +61 (0) Grand Central 1st Floor, 26 Railway Rd Subiaco Western Australia 6008 PO Box 201, Subiaco Western Australia 6904 Telephone: +61 (0) Facsimile: +61 (0) paladin@paladinresources.com.au Website: 17