Paladin Energy Ltdgy
The New Energy In The Market
John Borshoff – Managing Director/CEO
1Investor Presentation
February 2009
Disclaimer
This presentation includes certain statements that may be deemed “forward-lookingstatements”. All statements in this presentation, other than statements of historical facts, thataddress future production, reserve or resource potential, exploration drilling, exploitationactivities and events or developments that Paladin Energy Ltd (the “Company”) expects tooccur, are forward-looking statements.
Although the Company believes the expectations expressed in such forward-lookingg p y p p gstatements are based on reasonable assumptions, such statements are not guarantees offuture performance and actual results or developments may differ materially from those in theforward-looking statements. Factors that could cause actual results to differ materially fromthose in forward looking statements include market prices, exploitation and explorationsuccesses and continued availability of capital and financing and general economic marketsuccesses, and continued availability of capital and financing and general economic, marketor business conditions.
Investors are cautioned that any such statements are not guarantees of future performanceand 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 itslooking statements. The Company does not assume any obligation to update or revise itsforward-looking statements, whether as a result of new information, future events orotherwise.
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Paladin Statuskey takeawayskey takeaways
• Paladin reaches significant growth operational milestones– Langer Heinrich sustaining above nameplate and commissioninga ge e c susta g abo e a ep ate a d co ss o g– Kayelekera in commissioning phase
• Committed to growth and expanding production base• Committed to growth and expanding production base– Stage III Langer Heinrich– Mount Isa
M&A ( FUSION k )– M&A (eg FUSION takeover)
• Demonstrating clear action to support its strategic vision– foresaw transformational changes in nuclear industry
• Sufficient funding available to support envisaged growthSufficient funding available to support envisaged growth
• Stable, effective Board and growing management
Paladin’s Suite of Uranium Properties staged for sequential developmentstaged for sequential development
Ad d E l ti Pre Development
Construction of MineReserves of 25Mlb
Advanced Exploration ProjectResources of 23Mlb
Pre Development ProjectResource - 85Mlb
Resources of 35Mlb
pro uranium
pro uranium
Re-activate EvaluationManyingee Resource of 24Mlb
New ProjectAngela/Pamela DepositsHistorical ~28Mlb
pro uranium
Operating Mine plus expansion
Reserves of 65.8Mlb
Resources of 164MlbPaladin 100% Paladin 85%
Attributable Pounds
Resources of 164MlbPaladin 42.06% Paladin 50% (plus 81.99% control of Summit –
in its 100% owned properties) Paladin 50% JV Cameco
5Fusion 100% & Deep Yellow 19.29%
Recent Dec Qtr Results
• Gross profit of US$6.4M, with LHUP contributing US$5.3M.Gross profit of US$6.4M, with LHUP contributing US$5.3M.
• Record production levels on upward trend - 673,982lb, up from650 554lb for the previous quarter650,554lb for the previous quarter.
• Declining costs, projected to decline further.
• Reduced sales revenue reflects delivery schedules, not shortfall in sales e.g. 208,000lb sold 2 Jan 09.
• Elected to impair Mount Isa exploration assets (US$527.6M net of DTL) and required to impair investment in Deep Yellow Ltd (US$26.0M).
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Questions?• STAGE I - at above design production • STAGE II - expansion being commissioned
• STAGE III - expansion in design phase
• Large Resource Upgrade
Langer Heinrich Mountain
Open Pits
Plant Tailings
Langer Heinrich Projectlarge resource/reserve upgradelarge resource/reserve upgrade
MINERAL RESOURCES
250ppm Cut-off Mt Grade % U O t U O Mlb U O250ppm Cut-off Mt Grade % U3O8 t U3O8 Mlb U3O8
Measured Resources 32.8 0.06 19,582 43.171
Indicated Resources 23.6 0.06 13,276 29.269
Measured + Indicated 56.4 0.06 32,858 72.440 46% increaseMeasured Indicated 56.4 0.06 32,858 72.440
Inferred Resources 70.7 0.06 41,557 91.617
Conforms to both JORC and NI 43-101 guidelines
64% increase
g
MINING RESERVES @ US$60/lb U3O8
250ppm Cut-off Mt Grade % U3O8 Tonnes U3O8250ppm Cut off Mt Grade % U3O8 Tonnes U3O8
Proven Ore Reserves 30.0 0.06 17,924 (39.50Mlb)
Probable Ore Reserves 20.6 0.06 11,950 (26.34Mlb)
Total 50.6 0.06 29,874 (65.84Mlb) 75% increase* , ( )
Conforms to both JORC and NI 43-101 guidelines
* Stage I Mine plan
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- 900ppm U3O8 ore feed for 12 years- 420ppm (low grade stock piles) ore feed for 5 years
Langer Heinrich Projectproduction – 6 months at designproduction 6 months at design
300,000
January 2009, production lbs U3O8
100 000
150,000
200,000
250,000
DrummedDesign
-
50,000
100,000 g
8 months over Nameplate, lbs U3O8
1 200 0001,400,000 1,600,000 1,800,000 2,000,000
400,000 600,000 800,000
1,000,000 1,200,000
Actual Drummed
Design
-200,000
June to Jan/09
Langer Heinrich Production quarter by quarterquarter by quarter
600,000650,000
650,054
673,982Stage I Design
390 807
490,800
568,670
400,000
500,000
lb88%
100%
104%
259,755
390,807
100 000
200,000
300,000U3O8
%
60%
75%
88%
0
100,000
Q1 Q2 Q3 Q4 Q1 Q2
40%
Q1Sept 07
Q2Dec 07
Q3Mar 08
Q4Jun 08
Q1Sept 08
Q2Dec 08
Langer HeinrichStage II expansionStage II expansion
IX Columns
Pre leach
Front–end Upgrade
Larger Leach TanksCCD Thickeners
Langer HeinrichStage II construction statusStage II construction status
New Crushing System Pre-Leach &CCD Thickeners
Leach Tanks Power StationPower Station
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Kayelekera Uranium Projectcurrent statuscurrent status• US$200M CAPEX – (final within 5%)
– construction 90% complete Exploration Targetsconstruction 90% complete
– commissioning started January 2009
– 3.3Mlb U3O8 pa using acid leach/Resin in Pulp
d ti i M h 2009Karonga
Targets
Hot Targets
– production ramp-up in March 2009
– 1600 people on site
– high safety achievement 2.9Mhrs injury free
• Tailings Dam and other water structure construction completed
O it d t t k ili
Juma
• Open-pit down to ore zone, stockpiling commenced
• Developing strong uranium experiencedoperational team.
• Excellent satellite targets for resource expansion (Juma and Mpata)p ( p )
• Project financing (US$167M) near drawdown 15
Kayelekera Uranium Projectlarge resource/reserve upgradelarge resource/reserve upgrade
MINERAL RESOURCES300ppm Cut off Mt Grade ppm Tonnes Mlb300ppm Cut-off Mt Grade ppm
U3O8
Tonnes U3O8
MlbU3O8
Measured Resources 3.42 1,211 4,141 9.1Indicated Resources 18.78 725 13,626 30.0Total 22.20 800 17,757 39.1Inferred Resources 3.9 552 2,152 4.7 29% increase
Conforms to both JORC and NI 43-101 guidelines
MINING RESERVES400ppm Cut-off Mt Grade
ppmU O
Tonnes U3O8
MlbU3O8
U3O8Proven Ore Reserve 2.87 1,373 3,943 8.7Probable Ore Reserve 9.75 959 9,342 20.6Total 12.62 1,053 13,285 29.3 17% increase, ,
Conforms to both JORC and NI 43-101 guidelines
27% Increase in total Resources
Mount Isa Uranium Projectcurrent status• Uranium resource attributable to
Paladin increased by 198% to 85 2Mlb
current status
Fusion DepositsPaladin increased by 198% to 85.2Mlb– Skal resource update due March 09
• Focused metallurgical scoping test
p
Focused metallurgical scoping test work underway
• Environmental baseline work ongoing
• Fusion takeover adds resources and potential for more
VALHALLA
SKAL
• Preparing for Bankable Feasibility Study to start early 2010
• Ongoing lobbying of QLD Government re uranium policy
• 08/09 budget US$8M
Stated Resources – Summit and Valhalla
Deposit * Measured and IndicatedR
InferredR
PaladinShResources Resources Share
Cut-off ppmU3O8
Mt Grade ppm t U3O8 Mt Grade
ppm t U3O8
Valhalla 230 27.80 891 24,765 7.3 799 5,863 90.9%Skal 250 7.6 508 3,781 90.9%Bikini 250 10.1 517 5,200 81.9%50 0 5 5, 00 8 9%Andersons 230 2.0 1,050 2,100 81.9%Watta 230 4.2 410 1,720 81.9%
24 765 18 664Total 27.80 891 24,765 (54.6Mlb) 31.2 597 18,664
(41.1Mlb)Total Resource Attributable to
P l di25.27 891 22,511
(49 6Mlb) 26.9 601 16,154(35 6Mlb)Paladin (49.6Mlb) (35.6Mlb)
Conforms to both JORC and NI 43-101 guidelines
* Excludes the Fusion 7 06Mlb at 07% U O NI 43 101 Inferred Resources
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Excludes the Fusion 7.06Mlb at .07% U3O8 NI 43-101 Inferred Resources
4 Year Production Outlook
8.49.3
8
9
10
Actual Forecast
6.6
6
7
8
Mlb
3.35
3
4
5MlbU3O8
1.71
1
2
3
0
2007/08 2008/09 2009/10 2010/11 2011/12
Langer Heinrich Production Kayelekera Production
Project Pipelineassets acquired & projects developedassets acquired & projects developed
In
Langer HeinrichU i Mi i
In Commissioning
2012Uranium Mining
Operation
Inventory U3O8
351Mlb351Mlb
New production with staged organic g ggrowth 2007 to 2011
Paladin Offers Excellent Upside key outcomes for 2008/09key outcomes for 2008/09
• Langer Heinrich (Namibia)– achieve 1.5Mlb to 1.6Mlb for H2 2008 (CY)– fully integrate Stage II expansion (2.6Mlb to 3.7Mlb pa)– Stage III expansion planned and designed– produce 2.95Mlb U3O8 for 12 month period end June 09
• Kayelekera (Malawi) – fully commission operation and start production ramp-up in March– produce 0.4Mlb U3O8 by June 09produce 0.4Mlb U3O8 by June 09– drilling on hot targets
• Mount Isa Project (Queensland - Australia)– update resource estimate for Skal March 09 and continue drilling– complete prefeasibility study April 09– initiate work on Fusion targets
• Angela/Pamela Uranium Deposit (Northern Territory – Australia)– commence field work June quarter 09
• Manyingee (Western Australia)• Manyingee (Western Australia)– start up preparation for resource confirmation drilling
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Conclusion
• Multi-mine/multi-country operating status
• Maintaining strong production profile
• Further expansion possibility at Langer Heinrich (Stage III)Further expansion possibility at Langer Heinrich (Stage III)
• Sustained development from project pipelineprogress Mount Isa and Angela Projects for development beyond– progress Mount Isa and Angela Projects for development beyond 2012
• Focussed M&A activity• Focussed M&A activity– opportunity to establish a global uranium mining house
U i k t tl k iti• Uranium market outlook very positive
• Strong balance sheet
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PALADIN ENERGY LTDContact Details
Mr John Borshoff(Managing Director)
Grand Central 1st Floor, 26 Railway RdSubiaco Western Australia 6008(Managing Director)
Mobile: +61 (0) 419 912 571Email: [email protected]
Subiaco Western Australia 6008PO Box 201, Subiaco Western Australia 6904Telephone: +61 (0) 8 9381 4366Facsimile: +61 (0) 8 9381 4978Email: [email protected] @p gyWebsite: www.paladinenergy.com.au