Paladin Energy : Annual Report to shareholders

PALADIN ENERGY LTD

ACN 061 681 098

ASX Announcement

28 August 2020

FINANCIAL REPORT

FOR THE YEAR ENDING 30 JUNE 2020

Paladin Energy Limited (ASX:PDN) (Paladin or the Company) is pleased to announce its financial results for the year ended 30 June 2020 (FY2020).

FY2020 HIGHLIGHTS

Financial and Operational Performance

• Paladin Energy Limited (Paladin or the Company) announced the results of the Langer Heinrich Mine Restart Plan (The Restart Plan) during FY2020 confirming restart capital, costs and operational performance
• The Restart Plan has a low restart capital intensity (US$14/lb) and competitive C1 Cost of Production (US$27/lb) and confirms the Langer Heinrich Mine is well positioned alongside other Tier 1 operations to deliver product into a recovering uranium market
• The Langer Heinrich Mine remained in Care and Maintenance during the year
• Net loss after tax from continuing operations for FY2020 of US$46.1M (FY2019 US$49.1M)
• FY2020 expenditure was US$16.8M, compared to guidance of US$17M
• Total Assets of US$364.4M as at 30 June 2020

Health & Safety

• No lost-time injuries were recorded during the year
• The Company instituted appropriate protocols across all locations to minimise the potential transmission of COVID-19, with no reported confirmed cases to our people, or onsite contractors

Corporate

• Restructuring of Paladin Board and new Chief Executive Officer appointed during FY2020 to provide the technical and commercial skill set necessary to restart the Langer Heinrich Mine
• Paladin completed the sale of its interest in the non-core Kayelekera Mine to Lotus Resources Limited and Lily Resources Pty Ltd
• Successful completion of a Share Placement to institutional and sophisticated investors and a Share Purchase Plan raising gross proceeds of US$21.6M was completed in September 2019
• US$34.2M of cash and cash equivalents as at 30 June 2020 (excluding restricted cash of $1M)
• The Company's guidance for FY2021 total expenditure is US$9.5M, a 44% reduction from
  FY2020

Level 4, 502 Hay Street, Subiaco, Western Australia 6008 Postal: PO Box 201, Subiaco, Western Australia 6904

Tel: [phone] Fax: [phone] Email: [e-mail] Website: www.paladinenergy.com.au

Paladin CEO, Ian Purdy said "Reflecting on FY2020, we have made significant progress with the key highlight being the completion of the Langer Heinrich Mine Restart Plan. The Restart Plan highlights the significant potential economic returns that can be delivered under the right uranium price environment. We are encouraged that the uranium market is showing early signs of recovery. While prices are not yet sufficient to drive the stakeholder returns required to restart operations, the market is clearly improving and we are in a strong position to restart our mine at the appropriate time. I look forward to updating you on our continued progress over the course of the year"

This release has been authorised for release by the Board of Directors of Paladin Energy Ltd.

For further information contact:

Ian Purdy

Chief Executive Officer

P: [phone]

1. [e-mail]

About Paladin

Paladin Energy Limited (ASX: PDN) is an Australian listed uranium company focused on maximising the value of its 75% stake in the Langer Heinrich Uranium mine in Namibia.

Langer Heinrich is a globally significant, long-life operation, having already produced over 43Mlb U3O8 to date. Operations at Langer Heinrich were suspended in 2018 due to low uranium prices.

Beyond Langer Heinrich, the Company also owns a large global portfolio of uranium exploration and development assets. Nuclear power remains a cost-effective, low carbon option for electricity generation.

Appendix 4E - Financial Report

Financial year ended 30 June 2020

Paladin Energy Ltd

ABN or equivalent company reference

ACN 061 681 098

Results for announcement to the market

			30 June 2020	30 June 2019
				US$'000	US$'000
Revenue from sales of uranium oxide	Down	100%	to	-	21,491
Revenue	Down	100%	to	-	21,491
Loss after tax attributable to members	Down	163%	to	(79,866)	(30,345)
Net loss for the year attributable to	Down	163%	to	(79,866)	(30,345)
members
Loss per share (US cents)				(4.1)	(1.7)
Dividends		Amount per security	Franked amount per security
It is not proposed to pay dividends for the year		N/A		N/A
Previous corresponding year:
No dividend paid			N/A		N/A

An explanation of the results is included in the Operating and Financial Review and the Financial Report attached.

	30 June 2020	30 June 2019
Net tangible assets per share	US$0.04	US$0.04

Other

Previous corresponding period is the year ended 30 June 2019.

All foreign subsidiaries are prepared using IFRS.

PALADIN ENERGY LTD

ACN 061 681 098

ANNUAL

REPORT

2020