PA L ADIN
P A L A D I N
R E S O U R C E S
A C N 0 6 1 6 8 1 0 9 8
L T D
A N N U A L R E P O R T 2 0 0 3
This concise report has been derived from the full financial report for the year ended 30 June
2003. The full financial report and auditor's report will be sent to members on request, free of
charge. Please call 08 9381 4366 and a copy will be forwarded to you. Alternatively, you can
access both the full financial report and the concise report via the internet at our website:
www.paladinresources.com.au.
The concise financial report cannot be expected to provide as full an understanding of the
financial performance, financial position and financing and investing activities of Paladin
Resources Ltd and its controlled entities as the full financial report.
The financial report covers both Paladin Resources Ltd as an individual entity and the
consolidated entity consisting of Paladin Resources Ltd and its controlled entities.
Paladin Resources Ltd is a company limited by shares, incorporated and domiciled in Australia.
Its registered office and principal place of business is:
Paladin Resources Ltd
1st Floor, 245 Churchill Avenue
SUBIACO WA 6008
A description of the nature of the consolidated entity's operations and its principal activities is
included in the review of operations and activities on pages 5 to 10 and in the Directors' Report
on pages 12 to 15.
Through the use of the internet, we have ensured that our corporate reporting is timely, complete,
and available globally at minimum cost to the company.
All press releases, financial statements and other information is available on our website
www.paladinresources.com.au.
Front Cover: Langer Heinrich Uranium Project.
P A L A D I N R E S O U R C E S L T D
C O N T E N T S
COMPANY SNAPSHOT
MINERAL RESOURCE STRUCTURE
CHAIRMAN'S LETTER
URANIUM UPTURN FOR CLEAN ELECTRICITY
SUMMARY OF REVIEW OF OPERATIONS
REVIEW OF OPERATIONS
CORPORATE GOVERNANCE STATEMENT
DIRECTORS' REPORT
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
DISCUSSION AND ANALYSIS OF CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
DISCUSSION AND ANALYSIS OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CASH FLOWS
DISCUSSION AND ANALYSIS OF CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS' DECLARATION
INDEPENDENT AUDIT REPORT TO THE MEMBERS
ADDITIONAL INFORMATION
CORPORATE DIRECTORY
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C O M P A N Y S N A P S H O T
P A L A D I N M O V I N G T O W A R D P R O D U C T I O N
(cid:2)
Uranium price up 25% in 12 months, now at 5 year high (US$12.20/lb)
(cid:2)
Company owns Langer Heinrich Uranium Project – a world class uranium deposit
(cid:2)
Bankable Feasibility Study planned for Langer Heinrich testing a 1,000tpa uranium operation
(equivalent to 88,000 oz gold) running over 10 years plus
M I N E R A L R E S O U R C E S T R U C T U R E
PALADIN RESOURCES LTD
U R A N I U M A C T I V I T I E S
N O N - U R A N I U M
A C T I V I T I E S
AFRICA
AUSTRALIA
DATABASE
100%
Langer Heinrich
Deposit, Namibia
(cid:1)
Near term
development
opportunity
90%
Kayelekera
Deposit, Malawi
100%
Manyingee
Deposit
100%
Oobagooma
Deposit
Au, PGM, Cu, Search
(cid:2)
Ashburton
Project
(Marengo
Spin Off)
Platinum,
Copper/Gold
Search
Frome
Project
Davenport Project
Mt Lofty Project
Arunta Project
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P A L A D I N R E S O U R C E S L T D
C H A I R M A N ’ S L E T T E R
Dear Shareholder
This year has in many ways been an important
watershed year for Paladin and one which has seen
both consolidation and rationalisation.
Consolidation has occurred with focus on our exciting
Langer Heinrich Uranium Project in Namibia which
gave a positive Pre-Feasibility Study and efforts are
now underway to secure funding for the 12 month
Bankable Feasibility Study. The uranium price is
nearing a 5 year high, having cracked the critical
US$10/lb U3O8 barrier early in the year, now at
US$12.20/lb and seemingly poised to go higher. The
timing is well set for the next stage on development for
the Langer Heinrich Project. Financial modelling at a
conservative long term contract price for uranium of
US$14.00/lb U3O8, a project producing 1,000t U3O8 over
10 years shows an NPV10% of US$50M. To better
understand the scope of the Langer Heinrich Deposit, it
has the equivalent in mineable resources of 968,000 oz
of gold, would produce the equivalent of 88,000 oz of
gold per year and have a mine operating cost of
US$163/oz in equivalent gold terms. Several
organisations are indicating interest in supporting the
to date indicate these resources can be expanded to
hopefully allow a small but profitable underground
mining operation. Absolut Resources Corp, our joint
venture partner, has indicated it will fund the next stage
of the evaluation as part of its earn-in.
Most of you will have been aware of the shareholder
dissent which occurred early this year and which
unfortunately created an enormous distraction both to
the Board and staff at a critical time in the Langer
Heinrich pre-feasibility evaluation. The resolutions
presented at the Extraordinary General Meeting to
remove the Board were soundly defeated, however to
accommodate renewed emphasis on the African
projects and introduce new blood, Doug Dunnet and
Gillian Swaby resigned as directors. We are pleased to
have Leon Pretorius as the new director and believe his
African and technical experience will be invaluable for
the Langer Heinrich Project. I would like to again
sincerely thank Doug and Gill for their dedicated
contribution as directors since listing of the Company
in 1994.
Paladin's interest in Coretel was successfully disposed
of after Coretel went into voluntary administration.
Unfortunately our original Coretel investment did not
achieve the desired objectives due principally to the
severe downturn in the telco sector. Coretel was
merged with eSpan Solutions, in which Paladin can
have a 30% equity interest through its $800,000
convertible note. This note matures in 2006 accruing a
5% annual compounding interest. There is also a fully
funded litigation against Coretel's equipment supplier,
Nortel and Paladin will receive 30% of any damages
claim found against that company. Considering many
companies which divested into hi tech lost all value in
their assets, we believe, under the circumstances,
Paladin has done well to redeem part of the funds it
BFS funding and these are currently being pursued.
invested in Coretel.
The other uranium projects of the Company,
Kayelekera and Manyingee, will remain on hold while
Langer Heinrich is being evaluated, although with
improving uranium price interest may expand into the
Kayelekera project earlier.
In terms of our non uranium activities, Marengo, the
gold company which Paladin spun out, is making a
second serious effort to list on the ASX. An updated
prospectus is prepared incorporating an additional gold
project from the prospective Laverton region and
should assist greatly in the listing of this company.
Also Paladin, through its database, has identified a gold
resource in the Mt Lofty Ranges east of Adelaide. A
resource of some 20,000ozs already exists and results
It is indeed pleasing to see general renewed investor
interest in the resource sector. This has combined with
the rising uranium price to improve Paladin's share
price. If, as is expected, this important investment
climate continues I feel sure Paladin has an exciting
year ahead.
Rick Crabb
CHAIRMAN
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U R A N I U M U P T U R N F O R C L E A N E L E C T R I C I T Y
The price of uranium is rising steadily due to emerging
Similar concessions are expected to eventually be
positive supply/demand fundamentals. The increasing
provided to the nuclear industry at large to
awareness of customers, suppliers and governments
combat vital greenhouse gas emission issues
that nuclear energy must maintain a key role in the
giving added impetus for increased nuclear power
supply of electricity both on economic and
utilisation.
environmental grounds is placing clear upward
pressure on the uranium market. Some important
developments reinforcing this trend are:-
In the European Union (EU) an extensive EU-wide
study on energy carried out in 2002 made it clear
that nuclear energy which provides 35% of EU
The recent temporary failure of a major uranium
electricity is already an important means of
mine causing immediate increase in the uranium
reducing greenhouse emissions and is
price reflecting a market fragility and vulnerability
fundamental in the EU's ability to meet stipulated
in terms of supply and the critical need to
Kyoto targets. EU states are not expected to
establish diversity in supply sources for the mid to
jeopardise the significant contribution that nuclear
long term.
power provides in this regard.
In the US, the Senate is considering a
In Europe Switzerland, Finland and Sweden have
comprehensive energy bill which includes
strengthened their resolve to maintain and/or
substantial support for nuclear energy. This
increase their dependency on nuclear power.
includes funding support for the construction of a
Bulgaria, Czechoslovakia, Ukraine and Rumania
high temperature nuclear reactor for hydrogen
are all moving forward to construct additional
production to advance the development of the
nuclear generating capacity.
hydrogen fuel cell technology and enable the US
to maintain industrial supremacy. If implemented
this technology would require massive input from
sustainable energy sources namely nuclear power.
In recognition of its very low environmental
effects the Ontario Government (Canada) has
extended tax concessions from renewables
(hydro, wind) to now also include nuclear power,
making this technology even more competitive.
In Asia China, India, South Korea, Taiwan and
Japan are maintaining their imperatives to
increase dependency on nuclear power for
generation of clean electricity.
With its quality advanced uranium projects, Paladin is
well placed to benefit and advantage its shareholders
from this improving uranium outlook.
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S U M M A R Y O F R E V E I W O F O P E R A T I O N S
Paladin has two key asset sets; a portfolio of quality
offer development possibilities for the future. With
uranium projects spearheaded by its Langer Heinrich
uranium prices at a 5 year high (US$12.20/lb
Project and the potential of an extensive exploration
September 2003), Paladin is one of few juniors globally
database that has still to be fully exploited.
that can offer attractive speculative possibilities for this
URANIUM
The objective of the Company is to develop into a
southern African junior energy company centered on
its Langer Heinrich Uranium Project in Namibia. A
positive Pre-Feasibility Study completed by Paladin
during the year confirmed the justification to take this
project to a Bankable Feasibility Study ("BFS"). This is
estimated to cost approximately A$3M-A$3.5M and
take 12 months to complete. The Company is currently
in discussions with its engineers (Fluor Daniel) to
obtain the detailed scheduling and costing for the BFS
and is discussing funding options for it with several
interested parties.
commodity giving investors the possibility of strong
upside.
In accumulating its uranium assets, consideration was
always given by the Company to acquiring projects
with the potential to be low cost operations and
suitable for smaller companies to develop.
DATABASE
A further objective of the Company is to continue
taking advantage of its extensive database and utilise
third party funds for exploration (via joint venture farm-
out). The Australian database continues to generate
project possibilities. An example of this has been the
Mt Lofty Joint Venture where a gold resource has been
Paladin's uranium portfolio also contains the
identified.
Kayelekera, Manyingee and Oobagooma Projects and,
whilst Langer Heinrich is the first choice, the others
URANIUM PROJECT SUMMARIES
CRITERIA
LANGER HEINRICH
KAYELEKERA
MANYINGEE
OOBAGOOMA
Paladin equity
100%
90%
100%
100%
Location
Namibia, Southern Africa
Malawi, Southern Africa
West Pilbara,
West Australia
West Kimberley,
West Australia
Deposit Type
Calcrete
Sandstone
Sandstone
Sandstone
Resources
tonnes U3O8
11,000t U3O8 @ 0.11%
(additional potential available)
11,547t U3O8 @ 0.15%
7,860t U3O8 @ 0.12%
9,950t U3O8 @ 0.14%
Mining Method
Conventional open pit
Conventional open pit
In-Situ Leach
In-Situ Leach
Previous Owners
Gencor Limited (South African
Central Electricity
Cogema
Cogema
Mining group) Acclaim
(WA Company)
Generating Board
(UK utility)
(French utility)
(French utility)
Past Expenditure
A$20M
A$9M
A$16M
A$5M
Activity/Status
1973-1980, 1999 to
present - Active
1982 - 1990 On hold
1979-1988 On hold
1982-1985 On hold
Project Significance
Large resource, good
Revised mining concept
One of only three
Large resource
infrastructure with good
potential for development
positive indicating potential Australian advanced
for development
ISL projects
potential
Timeframe
◆ 1 year BFS
◆ 18 months BFS
◆ 3 year staged
◆ 1 year construction
◆ 1 year construction
feasibility study
◆ 2 year reserve /
resource drilling
◆ 10 year (at least) mine life
◆ 10 year mine life
◆ 1 year construction
◆ 3 year feasibility
◆ 10 year mine life
study
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R E V I E W O F O P E R A T I O N S
LANGER HEINRICH URANIUM PROJECT
Langer Heinrich has the capacity to be a very low
In August 2002 Paladin announced the purchase of the
Langer Heinrich Uranium Deposit located in Namibia,
Southern Africa, from Aztec Resources Ltd ("Aztec" -
formerly Acclaim Uranium NL). The purchase
consideration was $15,000 together with a very soft
production royalty of 12 cents per kilogram of
yellowcake product sold and delivered to a buyer.
Aztec sold this Project after the company changed
corporate management and direction to pursue other
interests.
The Langer Heinrich Uranium Project is 100% owned
by Paladin through its wholly owned Namibian
subsidiary (Langer Heinrich Uranium (Pty) Ltd). The
Langer Heinrich deposit was discovered in 1973 by
Gencor Limited, a major South African Mining House
(now part of BHP Billiton). This is a calcrete type
deposit containing a global resource of 29,900t U3O8 at
a grade of 0.06% contained in 7 discrete mineralised
zones along a 15km length within an extensive
paleodrainage system. The deposit is located in the
Namib Desert, 80km east of the major seaport of
Walvis Bay.
The Paladin Directors decided to acquire the Langer
Heinrich Project for the following principal reasons: -
The improving market outlook worldwide for the
use of nuclear energy for production of electricity.
Uranium Oxide spot price continues to improve
(up 25% in 12 months and now US$12.20 per
pound). Market analysts are predicting
substantial increases in the price of this
commodity in the mid-term.
cost uranium producer.
In March 2003 Paladin completed the Pre-Feasibility
Study, the results showing clearly that the project
should be taken to final feasibility determination.
The Mineable Resource at the 344ppm U3O8 cut off is
estimated at 10,114,000t of ore grading 0.11% U3O8
containing 11,155t U3O8 and this resource is the basis
of the project Pre-Feasibility assessment and financial
modelling. Paladin has estimated a geological
resource for the deposit of 50Mt at 0.06% containing
29,900t U3O8 at a cut off of 200ppm U3O8. Opportunity
exists for additional mineralisation to be found within
the existing tenement as indicated by open-ended
drilling.
Current analysis indicates the project is robust and able
to support a 10 year mine life producing 1,000tpa
uranium oxide at a low operating cost. The cost of the
proposed BFS is estimated to be in the vicinity of A$3M
and is expected to take 12 months to complete. Fluor
has been selected as the engineers to manage the BFS.
With the improving uranium price and the feature that
a premium in the vicinity of 20%-25% can typically be
negotiated above the spot price for U3O8 sold under
long term sales contracts, it is anticipated that long
term sale contracts in the vicinity of US$13.00-
US$15.00/lb U3O8 will be possible for 2003/4 and
beyond when the Project starts production. Financial
modelling shows that with a base annual production of
1,000t U3O8 using an example sale price of US$14.00/lb
U3O8, midway in this range, the Project, over its 10 year
mine life, is capable of producing strong returns as
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Test mining trench and pit (Gencor 1978). In background 21 dumps of graded ore for various lithogical types.
shown by the following key performance indicator
table:-
Key Project Performance Indicators
US$
Total Operating Surplus
Cash Positive
Project NPV (10%)
Project IRR
Debt/Equity Ratio
Operating Costs
Mining
Processing
Admin
Total OPEX
Capital Costs
Equipment
Facilities & Infrastructure
Project Development
Contingencies
Total CAPEX
$167M
Year 3
$50M
35%
0.60
US$/t
$4.47
$6.81
$3.00
$14.28/t
or $6.54/lb U3O8
US$M
$20M
$6.2M
$7.3M
$3.4M
$36.9M
Estimated production costs of US$6.54/lb U3O8 place
the Project favourably in the lower quartile for cost of
production. At this stage of determination, capital
costs for establishment of the operation are estimated
to be US$37M.
The results to date show that Paladin has acquired a
premier project in Langer Heinrich, capable of taking
the Company to its next stage of development.
Detailed scheduling and costing of the BFS has begun
with Fluor. Negotiations are also underway with
several funding agencies who are offering the
possibility of assistance in funding of the BFS. One of
these funding groups has indicated willingness to fund
in the order of US$400,000 by way of a non refundable
grant. Fluor, in conjunction with Paladin, is now
preparing a formal application to secure this grant.
In addition Paladin has received early indication that a
major Institution is willing to fund the balance of the
BFS less Paladin's direct costs. There are certain
criteria that Paladin will need to meet to enable this to
occur. Nonetheless this is regarded as a major
breakthrough and discussions are underway to define
the required parameters that will ensure a firm
commitment is forthcoming. It is envisaged that this
Institution will then also take up equity in the Project
assuming a positive BFS outcome.
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The development schedule for the Langer Heinrich Project is envisaged as follows:-
2004
Year
2005
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2006
Q1
Q2
Task
BFS
EIS
Reserves
Sampling
Testwork
Engineering
Financial Analysis
Project Commitment
Construction
Implementation
KAYELEKERA PROJECT
The Kayelekera Uranium Project is located in the
northern part of Malawi in Southern Africa, 8km south
of the main road that connects the townships of
Karonga and Chitipa. It is 40km to the west of the
provincial town of Karonga. Exclusive Prospecting
Licence "EPL 070" covers the Kayelekera deposit.
Mid 2006
(Paladin Africa Ltd). This Project has had A$9M spent
by previous owners, culminating in completion of a
final feasibility study in 1990 which showed the project
to be uneconomic on the parameters then utilised.
Modelling of a new mining concept by Paladin
indicates that the Project can be optimised with a
positive financial outcome. Approximately US$2.7M is
required for a new updated bankable feasibility study.
A final feasibility study is required on this Project
The Project is currently on hold while the Langer
before decision to develop can be made and this work
Heinrich Project is being advanced.
will be largely based on, and assisted by, the extensive
feasibility studies carried out by its previous owners in
the period 1982-1990.
The Kayelekera Project presents an ideal platform for
initiation of a much needed modern mining industry in
Malawi and may therefore be viewed sympathetically
The Kayelekera Uranium Project is owned 90% by
by international funding organisations.
Paladin through its wholly owned Malawi subsidiary
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MANYINGEE PROJECT
The Manyingee Uranium Project is located in the
northwest of Western Australia, 85km inland from the
coastal township of Onslow. Good access to the site
exist, either via the North West Coastal Highway (39km)
or the Barradale-Onslow road 22km to the west. The
Tubridgi Natural Gas Pipeline passes 500 metres east of
the licence area. The property is protected by 3 Mining
Leases totalling 13km2.
The Project contains an Indicated and Inferred
Resource of 6.4Mt of ore at a grade of 0.12% U3O8
containing 7,680t of U3O8 in permeable sandstone and
previous trial test work indicates the deposit is
amenable to In-situ Leach Mining (ISL).
The Project is currently mothballed and no field work
was carried out on the Project during the year, with the
Southern African projects being given priority for
development.
OOBAGOOMA PROJECT
No work was carried out on this Project during the
year. The main exploration effort, once the tenements
have been granted, will be to confirm continuity of the
uranium mineralisation by infill drilling concentrating
on mineralised redox fronts as re-interpreted and
further develop the reserves for consideration of a
future ISL mining operation.
QUASAR-PALADIN JOINT VENTURE
Paladin has a joint venture in South Australia on
EL3001 and EL3078 with Quasar Resources Pty Ltd, a
wholly owned subsidiary of Heathgate Resources Ltd
(“Heathgate”), owner of the Beverley ISL uranium
mining operation in the Frome Basin which reached full
production in 2001. Heathgate Resources is an
Australian affiliate of General Atomics of the USA.
The two tenements cover 1,500km2 and are located
immediately north of the Beverley Mine tenements.
Heathgate can earn an 80% interest in these properties
with Paladin retaining a free carried interest of 20% and
15% respectively until completion of a bankable
The Oobagooma Project is located 75km north east of
feasibility study and a decision to mine.
Derby in the Kimberley Region of Western Australia on
freehold land owned by the Commonwealth and used
by the military. The area is covered by two EL
applications covering 392km2. The Project was
explored by Afmeco from 1983 to 1986 during which
time extensive zones of uranium mineralisation were
discovered. Afmeco calculated total geological
resources of 8.2Mt of ore at a grade of 0.12% U3O8
containing 9,950t U3O8 using geostatisical methods
employing a 0.03% U3O8 cut off.
Heathgate carried out an electromagnetic airborne
TEMPEST survey over the properties to identify
prospective palaeochannels. The data delineated
numerous targets and rotary mud drilling has
commenced to test these prospective zones.
Ground magnetic, gravity surveys, geological mapping,
soil and rock chip sampling were also conducted over
an area of approximately 6km2 in the Woolatchi Creek
area of EL3001 at a location NW from Moolawatana
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homestead. An elongated magnetic anomaly
Paladin retains a convertible note of $800,000 with a
approximately 1800m by 300m was located along with
term of 4 years. The convertible note will accrue
a number of small intense bullseye features in part
interest at a rate of 5% per annum payable at maturity.
coincident with a TEMPEST anomaly located by the
On the present corporate structure Paladin has the right
regional airborne survey previously carried out. A
to a 30% equity in this new merged group via its
number of small residual gravity features are also
convertible note facility and this conversion is at
present. This may represent an iron oxide/copper/gold
Paladin's discretion. Pursuant to Coretel's DOCA,
prospect located within an eastern extension of the Mt
Paladin will also receive 30% of the net proceeds from
Baddage Block containing Mesoproterozoic granitic,
the damages claim which is currently underway against
volcanic and metasedimentary rocks beneath a thin
Nortel (equipment supplier to Coretel). This action is
Cretaceous sedimentary cover. Modelling of the
fully funded by an independent insurance litigator.
magnetic data has identified a number of steeply
dipping magnetic horizons warranting further
COMMERCIAL PROPERTY
assessment. Drill testing is planned following receipt
Negotiations are currently underway for the sale of this
of soil and rock chip sampling results and completion
building.
of heritage surveys.
NON URANIUM ACTIVITIES
MT LOFTY JOINT VENTURE PROJECT
The first pass exploration work on the Mt Lofty Joint
Venture tenements with Paladin as operator has been
undertaken, with Absolut Resources Corp. ("Absolut")
completing its minimum expenditure of $60,000 to earn
a 10% interest in the Project. Absolut can earn a total
of 45% on expenditure of a further $345,000 on EL2863.
The investigations to date involving ground magnetic
and soil geochemical surveys, systematic rock chip
sampling, surface mapping and evaluation of old mine
data have isolated high grade gold mineralisation in
the Stockyard Gully area.
The joint venture partners are encouraged with the
results of the first pass investigations. Paladin, has
proposed further exploration once the small exemption
area within the prospective zone has been lifted by the
Mines Department and access clearance has been
achieved to carry out drilling in the Forest Reserve
area. Absolute has agreed to fund the next stage of
evaluation subject to the approval of its placement with
the TSX Venture Exchange and continue earning
further equity in the joint venture. The exploration
work which is planned will involve RC drilling targeted
to test both depth extension and lateral continuity of
the identified mineralisation.
OTHER INVESTMENTS
CORETEL PTY LTD
Additionally Etron has the opportunity of receiving a
further $40,000 from one of the tower lessees to be
paid on completion of construction of their facility on
the property.
MARENGO MINING LIMITED
As reported last year, Paladin spun off this new gold
exploration company as a consequence of its database
with specific focus on the prospective Ashburton
region of Western Australia and a view to list this on
the Australian Stock Exchange (ASX) mid 2002.
Unfortunately the ensuing downturn in equity markets
has to date not afforded Marengo this opportunity.
With renewed market interest in the resources sector,
the Directors of Marengo have advised that
consideration is again being given to seek a listing on
the ASX. This is scheduled to occur during the 4th
quarter 2003. Marengo's 100% ownership of a
significant portion of the Ashburton Structural Corridor,
gives it an excellent opportunity to discover Carlin style
gold deposits in a region which already hosts one very
successful gold mining operation and is the focus for
aggressive exploration programmes by major resource
companies. Also the recent acquisition by Marengo of
a new project in the Laverton area of WA gives the
company prime exploration ground in a proven gold
producing region.
Marengo currently has only 13.6 million shares on
issue and with cash at bank of some $300,000 is well
positioned to take advantage of a market upturn to gain
The Deed of Company Arrangement (DOCA) for Coretel
ASX listing.
entered into by the Avanti Group International Pty Ltd
was finalised 22 November 2002.
Coretel has been successfully merged with e-Span
Solutions Pty Ltd (e-Span). This Telco business is
operating from the existing Coretel premises at Belmont.
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C O R P O R A T E G O V E R N A N C E
S T A T E M E N T
CORPORATE GOVERNANCE
The Board is responsible for the overall Corporate Governance of the Group ("the Group") including the strategic
direction, establishing goals for management and monitoring the achievement of these goals. The Board has also
established a framework for the management of the Group including setting levels of remuneration for Executive
Directors, Managers and senior personnel, an overall framework of internal control and the establishment of
appropriate ethical standards.
The Board regularly reviews operational and financial performance and reviews and approves detailed budgets and
investment opportunities. Being a small company at present, the Board works closely with executive management to
identify and manage operational, financial and legislative risk. Whilst the Corporate Governance policies and
procedures have been in place since the incorporation of the Company, they were formally adopted by the Board in
May 1996.
AUDIT COMMITTEE
The Company is not of a size which justifies having a separate Audit Committee, however, matters typically dealt with
by such a committee are dealt with by the full Board.
COMPOSITION OF THE BOARD
The composition of the Board is determined using the following principles:
The Board should comprise three Directors. This number may be increased where it is felt that additional
expertise is required in specific areas, or when an outstanding candidate materialises.
The Chairman of the Board should be a Non-Executive Director.
The Board should comprise Directors with a broad range of expertise.
When a vacancy exists, through whatever cause, or where it is considered that the Board would benefit from the
services of a new director with particular skills, the Board selects a candidate or panel of candidates with the
appropriate expertise and experience. The Board then appoints the most suitable candidate who must stand for
election at the next general meeting of shareholders. The Company does not have a formal Nomination Committee.
INDEPENDENT PROFESSIONAL ADVICE
Each Director has the right to seek independent professional advice at the Group's expense. However, prior approval
of the Chairman is required, which may not be unreasonably withheld.
REMUNERATION
Remuneration levels are set by the Board in accordance with industry standards to attract suitably qualified and
experienced Directors and senior executives. The Board obtains independent advice on the appropriateness of
remuneration packages.
ETHICAL STANDARDS
All Directors, managers and employees are to act with the utmost integrity and objectivity, striving at all times to
enhance the reputation and performance of the Group.
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◆
◆
◆
D I R E C T O R S ’
R E P O R T
The Directors present their report on the consolidated entity consisting of Paladin Resources Ltd and the entities it
controlled at the end of, or during, the year ended 30 June 2003.
DIRECTORS
The Directors in office at the date of this report are:
Mr Rick W. Crabb (Chairman)
B. Juris (Hons), LLB, MBA
Mr Crabb is a partner with the legal practice, Blakiston and Crabb and a Director of the investment bank, Chatsworth
Stirling Pty Ltd. He holds degrees of Bachelor of Jurisprudence (Honours), Bachelor of Laws and Master of Business
Administration from the University of Western Australia. He has practised as a solicitor since 1980 and was previously
a partner with a major law firm. He specialises in mining, corporate and commercial law. Mr Crabb is also a director
of Menzies Court Holdings Limited, Ashburton Minerals NL, Alcaston Mining NL, ST Synergy Ltd, Thundelarra
Exploration Ltd and Chatsworth Stirling Pty Ltd.
Mr John Borshoff (Managing Director)
B.Sc. F.AusIMM
Mr Borshoff is a geologist who has been involved in the Australian exploration and mining industry for 26 years.
Mr Borshoff worked for International Nickel and Canadian Superior Mining before joining a German mining group,
Uranerz from 1976 to 1991. He became Chief Geologist/Exploration Manager during the period 1981-1986 and served
as its chief executive from 1987 to mid 1991 when the German parent of Uranerz made the decision to close its
Australian operations. Uranerz primary focus was for the search and development of uranium projects with the
company operating extensively throughout Australia, North America and Africa.
Mr Borshoff has extensive experience in uranium, gold and base metal exploration, company management and
administration.
Dr Leon Pretorius (Director - Non-Executive)
BSc(Hons), MSc, PhD, FAusIMM (CP), MAIG, PrSciNat
Dr Pretorius is a geochemist with 30 years experience working both in Australia and Africa. He has extensive
experience in uranium, gold, base metal and industrial mineral exploration and has a sound knowledge of opencast
mining operations in Sub-Saharan Africa. From 1984 to 1990 Dr Pretorius was Managing Director of Australian
publicly listed company Keela-Wee Exploration Ltd and since has been actively involved in the resource sector both in
Australia and Southern Africa.
Dr Pretorius was appointed a director on 27 March 2003.
PRINCIPAL ACTIVITY
The principal activity of the economic entity constituted by Paladin Resources Ltd and the entities it controlled during
the financial year was mineral exploration.
RESULTS OF OPERATIONS
The economic entity's policy is to write off acquisition and exploration costs associated with abandoned or non-
commercial areas and to this extent an amount of $41,272 (2002: $96,079) was written off. Expenditure totalling
$3,166,276 (2002: $2,808,937) has been carried forward on other areas where operations are continuing. The
consolidated results are as follows:
Operating loss after income tax
571,633
2,226,113
2003
$
2002
$
1 2
P A L A D I N R E S O U R C E S L T D
D I R E C T O R S ’
R E P O R T
DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended for the current year.
REVIEW OF OPERATIONS
A detailed review of the economic entity's operations is set out on pages 5 to 10 of this report.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the economic entity during the financial year not otherwise
dealt with in this report.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction
or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect substantially the
operations of the economic entity, the results of these operations or the state of affairs of the economic entity in
subsequent financial years with the exception of those matters disclosed in Note 5 of the financial statements.
ENVIRONMENTAL REGULATIONS
The consolidated entity is subject to significant environmental regulation in respect to its exploration
The Company aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that it is
aware of and is in compliance with all environmental legislation. The Directors of the Company reviewed the Company's
projects during the year and are not aware of any breach of environmental legislation for the financial year under review.
LIKELY DEVELOPMENTS
Likely developments in the operations of the economic entity constituted by Paladin Resources Ltd and the entities it
controls from time to time are set out in the attached Review of Operations.
OPTIONS OVER UNISSUED CAPITAL
Unlisted Options
(i)
Exercisable at 15 cents, on or before 30 November 2004
Balance at 1 July 2002
Issued during year
Balance at date of this report
Listed Options
(ii)
Exercisable at 10 cents, on or before 21 January 2004
Balance at 1 July 2002
Issued during year
Balance at date of this report
(iii) Exercisable at 15 cents, on or before 31 May 2003
Balance 1 July 2002
Issued during year
Less expired during year
Balance at date of this report
NUMBER OF OPTIONS
2003
2002
4,700,000
-
4,700,000
-
4,700,000
4,700,000
62,250,000
-
750,000
62,250,000
63,000,000
62,250,000
52,303,071
52,203,071
-
100,000
(52,303,071)
-
-
52,303,071
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D I R E C T O R S ’
R E P O R T
DIRECTORS' INTERESTS
2003
R W Crabb
J Borshoff
L Pretorius
Fully Paid
Shares
Options*
Options**
5,964,746
566,940
12,458,394
1,778,345
8,000,000
750,000
1,000,000
1,500,000
-
The particulars of Directors' interests in shares and options are as at the date of this report.
*
Listed and exercisable at 10 cents on or before 21 January 2004
** Unlisted and exercisable at 15 cents on or before 30 November 2004
DIRECTORS' AND EXECUTIVES' EMOLUMENTS
Remuneration levels are set by the Board in accordance with industry standards to attract suitably qualified and
experienced Directors and senior executives and is not performance linked.
Name
Directors' Fees
Consulting Fees
$
$
Options
$
Total
$
2003
2002
2003
2002
2003
2002
2003
2002
Non-executive Directors of Paladin Resources Ltd
R Crabb
D Dunnet
D R Kennedy
L Pretorius+
12,000
15,000
28,576
-
30,000
20,000
4,000
3,000
-
-
-
-
20,000
11,097
-
-
Executive Directors of Paladin Resources Ltd
J Borshoff
12,000
15,000
153,500
144,375
G Swaby
7,000
15,000
52,000
70,800
-
-
-
1,500
-
-
6,000
40,576
21,000
6,000
30,000
37,097
-
-
4,000
24,500
-
-
9,000
165,500
168,375
7,200
59,000
93,000
D Dunnet resigned 10 December 2002
D R Kennedy was appointed 10 December 2002 and resigned on 27 March 2003
L Pretorius was appointed on 27 March 2003
G Swaby resigned on 1 February 2003
+The $20,000 consulting fees was paid through the issue of 1,000,000 fully paid shares at $0.02 each and 750,000
options at $0.002 each in the Company.
There are no other executives in the Company.
The amounts disclosed above for remuneration relating to options are the assessed fair values of options at the date
they were granted during the year ended 30 June 2003. Fair values have been assessed using the Black Scholes
option pricing models. This value has not been included in the statement of Financial Performance.
As at 30 June 2003, a total of $427,606 due to directors, former directors and their companies was included in trade
creditors:
Agreement was reached between the Company (represented by the independent Director, Dr Leon Pretorius) and other
Directors, former Directors and associates of Directors of Paladin in relation to the satisfaction of debts totalling
$402,836. It was agreed repayment would only be made out of the balance reached by Paladin from sale by Etron
Properties Pty Ltd of the property at 5-7 Belmont Avenue, Belmont. It is further understood that if Paladin does not
receive sufficient monies to satisfy these debts then the balance of those debts shall be forgiven and released in full.
1 4
P A L A D I N R E S O U R C E S L T D
D I R E C T O R S ’
R E P O R T
MEETINGS OF DIRECTORS
The following table sets out the number of meetings of the Company's Directors held during the year ended 30 June
2003 and the number of meetings attended by each Director.
Number of meetings held:
Number of meetings attended by:
R W Crabb
J Borshoff
L Pretorius
G Swaby
D Dunnet
D R Kennedy
12
12
12
2
8
6
3
Number of meetings entitled to attend:
12
12
2
8
6
4
INSURANCE OF OFFICERS
During the financial year, the Company has paid premiums to insure each of the following persons against certain
liabilities arising out of their conduct while acting in the capacity of officer of the Company.
R Crabb
J Borshoff
L Pretorius
G Swaby
D Dunnet
D R Kennedy
Under the terms of the insurance contract, the nature of liabilities insured against and the premium paid cannot be
disclosed.
DATED at Perth this 30th day of September 2003
Signed in accordance with a resolution of Directors.
J Borshoff
DIRECTOR
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C O N S O L I D A T E D S T A T E M E N T O F
F I N A N C I A L P E R F O R M A N C E
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
Notes
Revenue from ordinary activities
Exploration costs written off
Borrowing costs
General and administration
Bad debts written off
Write down of investments
Write back of investments
Share of net loss of associate accounted for
using the equity method
Loss from ordinary activities before income tax
Income tax expense
Total changes in equity other than those resulting from
transactions with owners as owners
CONSOLIDATED
2003
$
148,905
(41,272)
(59,503)
(556,971)
(81,800)
2002
$
258,724
(96,079)
(51,585)
(489,268)
-
-
(1,445,000)
256,000
-
(236,992)
571,633
-
(402,905)
2,226,113
-
571,633
2,226,113
Basic and diluted earnings per share (cents)
4
(0.27)
(1.05)
The above statement of financial performance should be read in conjunction with the accompanying notes.
D I S C U S S I O N & A N A L Y S I S O F C O N S O L I D A T E D
S T A T E M E N T O F F I N A N C I A L P E R F O R M A N C E
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
In August 2002 the Company purchased the Langer Heinrich Uranium Deposit located in Namibia, southern Africa on
the back of an improving market outlook worldwide for the use of nuclear energy for production of electricity and an
increasing uranium price. At the time of purchase, the uranium price was US$9.75/lb U3O8 having now reached
US$12.20 at the date of signing these accounts. In March 2003 Paladin completed the Pre-Feasibility Study, with the
results showing that the Project should be taken to final feasibility determination. Detailed scheduling and costing of
the Bankable Feasibility has begun with Fluor and negotiations are underway with several funding agencies who are
offering the possibility of assistance in funding the Bankable Feasibility Study.
Evaluation of the proprietary database produced the Mt Lofty Project which became the subject of a joint venture with
Absolut Resources Corp. Absolut has earned a 10% interest by expenditure of $60,000 and can earn a total of 45% by
expending a further $345,000.
In relation to the investment in Coretel Pty Ltd, the Deed of Company Arrangement was finalised in November 2002.
Negotiations with the purchaser of that company resulted in Paladin retaining a convertible note of $800,000 with a 4
year term, which accrues interest at 5% per annum. As a result of this, $256,000 has been written back against the
investment to bring the book value to $800,000.
The commercial premises produced rental revenue totalling $122,674 with associated borrowing costs of $59,503. As
a result of the Deed of Company Arrangement for Coretel, an amount of $81,800 was written off as bad debts relating
to the prior year.
As a result of equity accounting for ST Synergy Ltd, Paladin's consolidated loss included $200,000 in respect of
amortised goodwill and $36,992 as the share of the operating loss of that company.
1 6
P A L A D I N R E S O U R C E S L T D
C O N S O L I D A T E D S T A T E M E N T O F
F I N A N C I A L P O S I T I O N
a s a t
3 0 J u n e 2 0 0 3
CONSOLIDATED
CURRENT ASSETS
Cash
Receivables
Property Plant & Equipment
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Receivables
Investments in associate
Other financial assets
Property, plant & equipment
Other
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Accounts payable
Provisions
Interest bearing liabilities
Other
2003
$
121,829
171,279
1,132,955
1,426,063
24,438
-
800,000
318,871
3,166,276
4,309,585
5,735,648
471,188
37,097
731,943
50,000
2002
$
286,890
210,158
-
497,048
-
236,991
544,000
1,566,997
2,808,937
5,156,925
5,653,973
236,517
32,610
-
-
TOTAL CURRENT LIABILITIES
1,290,228
269,127
NON CURRENT LIABILITIES
Interest bearing liabilities
Other
TOTAL NON CURRENT LIABILITIES
-
20,000
20,000
731,787
20,000
751,787
TOTAL LIABILITIES
1,310,228
1,020,914
NET ASSETS
4,425,420
4,633,059
PARENT ENTITY INTEREST EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
19,470,094
19,099,393
174,463
181,170
(15,219,137)
(14,647,504)
4,425,420
4,633,059
The above statement of financial position should be read in conjunction with the accompanying notes.
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D I S C U S S I O N & A N A L Y S I S O F C O N S O L I D A T E D
S T A T E M E N T O F F I N A N C I A L P O S I T I O N
a s a t
3 0 J u n e 2 0 0 3
ASSETS
Current assets increased by $929,015, due in the main part to the reclassification of the commercial property from non
current to current assets, reflecting the fact that negotiations are currently underway for its sale. Offsetting this, non
current assets reduced by $847,340 as a result of the property reclassification, the write-back of the investment held in
Coretel (increase of $256,000) and the reduction in value of ST Synergy Ltd as a result of equity accounting (decrease
of $236,991).
Exploration efforts centred mainly on the Langer Heinrich Uranium Project, resulted in a net increase of capitalised
exploration expenditure of $357,339
LIABILITIES
The reclassification of the commercial property as detailed above resulted in a corresponding reclassification of the
attaching mortgage from non current to current liabilities. Overall, total liabilities increased by $289,314 largely
reflecting the remuneration remaining unpaid to Directors. Details of this are set out in the accompanying Directors'
Report.
EQUITY
Contributed equity increased by $370,701 as a result of share issues totalling $401,950 with offsetting transaction costs
of $31,249.
1 8
P A L A D I N R E S O U R C E S L T D
C O N S O L I D A T E D S T A T E M E N T O F
C A S H F L O W S
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Interest paid
Rental income
Net cash outflow from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Exploration and evaluation expenditure
Payments for investments
Sale proceeds on investments
Payment for controlled entities net of cash acquired
Net cash outflow from investing activities
Cash flows from financing activities
Share placement
Fundraising costs
Repayment of borrowings
Mortgage funding
Loan funding
Net cash inflow from financing activities
Net decrease in cash held
Cash at the beginning of the financial year
Cash at the end of the financial year
CONSOLIDATED
2003
$
2002
$
(346,710)
(521,486)
1,793
(59,503)
122,674
(281,746)
(235)
(256,525)
-
-
(4,649)
(261,409)
366,050
(37,956)
-
-
50,000
378,094
6,275
(51,585)
82,833
(483,963)
(19,805)
(299,537)
(386,422)
42,066
-
(663,698)
867,650
(153,078)
(3,305)
146,443
-
857,710
(165,061)
(289,951)
286,890
121,829
576,841
286,890
D I S C U S S I O N & A N A L Y S I S O F C O N S O L I D A T E D
S T A T E M E N T O F C A S H F L O W S
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
CASH FLOWS FROM OPERATING ACTIVITIES
The net cash outflow decreased to $281,746 reflecting the increased creditor position at year end.
INVESTING ACTIVITIES
The outflow reduced significantly from $663,698 to $261,409 reflecting the payments made in the prior year in relation
to the investment in Coretel Pty Ltd.
FINANCING ACTIVITIES
Fundraising from share issues accounted for the majority of cash inflows, together with loan funding of $50,000.
a n n u a l
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N O T E S T O T H E C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
This concise financial report relates to the consolidated entity consisting of Paladin Resources Ltd and the entities it
controlled at the end of, or during, the year ended 30 June 2003. The accounting policies adopted are consistent with
those of the previous year.
1.
BASIS OF ACCOUNTING
The financial report has been prepared on the basis of accounting principles applicable to a going concern, which
assumes the commercial realisation of the future potential of the Company's and consolidated entity's assets and
the discharge of their liabilities in the normal course of business.
The Board considers that the Company is a going concern and recognises that additional funding is required to
ensure that the Company can continue to fund its and the consolidated entity's operations for the twelve month
period from the date of this financial report. Such additional funding, as occurred during the year ended 30 June
2003 and has occurred subsequent to balance date as discussed in Note 5, can be derived from either one or a
combination of the following:
The Belmont commercial property is currently under negotiation for sale; the sale of which should release
additional working capital after repayment of debts;
Marengo Mining Pty Ltd is expected to list on the ASX in the December 2003 quarter, crystallizing
reimbursement payments to Paladin of $132,000;
Absolut Resources will fund 100% of the exploration on the Mt Lofty Joint Venture during earn-in and this
will partially offset Paladin operating costs;
The strategic investment relationship entered into with the Contiguous Millennium Fund, a global resource
investment fund, provides the opportunity to access necessary funding for ongoing working capital. In
addition, the Company is currently in discussion with a number of parties in relation to funding of the
Langer Heinrich Bankable Feasibility Study; and
The placement of securities under ASX Listing Rule 7.1 or an excluded offer pursuant to the Corporations
Act 2001.
In consideration of the foregoing factors, the Directors believe it is appropriate to adopt the going concern basis
of accounting in the preparation of this concise financial report.
There were no changes in accounting policies for the year ended 30 June 2003.
2.
SEGMENT INFORMATION
The consolidated entity operates in the following segments:-
Resources
Strong resource focus on uranium together with a proprietary database covering gold, copper and platinum.
Software
23% investment in ST Synergy Ltd, a Knowledge Management software company listed on ASX.
Telecommunications
Convertible notes totalling $800,000 with a 4 year term, accruing interest at 5% per annum. These arise from the
Company's original investment in Coretel Pty Ltd, a niche telecommunications company.
Property
Commercial premises located in Belmont, Perth, Western Australia.
2 0
P A L A D I N R E S O U R C E S L T D
◆
◆
◆
◆
◆
N O T E S T O T H E C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
2.
SEGMENT INFORMATION CONTINUED
Industry Segments 2003
Resources
Software
Telecommunications
Property
Consolidated
$
$
$
$
$
Other revenue
Total segment revenue
25,857
25,857
-
-
-
-
123,048
123,048
148,905
148,905
Loss from ordinary activities before
income tax expense
(554,663)
(236,992)
256,000
(35,978)
(571,633)
Income tax expense
-
-
-
-
-
Loss from ordinary activities after
income tax expense
(298,663)
(236,992)
256,000
(35,978)
(571,633)
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
3,772,267
151,047
Acquisitions of property, plant and
equipment, and other non-current
segment assets
398,846
Depreciation and amortisation expense
96,693
Other non-cash expenses
-
Industry Segments 2002
Other revenue
48,391
Unallocated revenue
Total segment revenue
Profit/(loss) from ordinary activities
-
-
-
-
-
-
800,000
1,163,381
5,735,648
-
-
-
(256,000)
731,943
-
18,713
81,800
882,990
427,238
1,310,228
398,846
115,406
(174,200)
-
114,333
162,724
96,000
258,724
before income tax expense
(411,254)
(402,905)
(1,445,000)
33,046
(2,226,113)
Income tax expense
-
-
-
-
-
Loss from ordinary activities after
income tax expense
(411,254)
(402,905)
(1,445,000)
33,046
(2,226,113)
Total assets
3,583,707
236,991
544,000
1,289,275
5,653,973
Segment liabilities
262,941
-
Unallocated liabilities
Total liabilities
Investment in associate
-
236,991
Acquisitions of property, plant and
equipment, and other non-current
segment assets
392,837
Depreciation and amortisation expense
102,730
Other non-cash expenses
23,957
-
-
-
-
-
-
-
-
-
262,941
757,973
1,020,914
236,991
15,056
11,903
407,893
114,633
1,445,000
-
1,468,957
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N O T E S T O T H E C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
f o r
t h e y e a r
e n d e d 3 0 J u n e 2 0 0 3
2.
SEGMENT INFORMATION CONTINUED
Geographical Segments
Segment revenues
Segment assets
current segment assets
2003
$
2002
$
2003
$
2002
$
2003
$
2002
$
Acquisitions of property, plant
and equipment, and other non-
Australia
Africa
148,905
258,724
4,597,412
4,856,707
17,042
336,314
-
-
1,138,236
797,266
381,804
71,579
148,905
258,724
5,735,648
5,653,973
398,846
407,893
3.
DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended for the current year.
4.
EARNINGS PER SHARE
(a) Basic and diluted Loss Per Share
CONSOLIDATED
2003
(cents)
(0.27)
$
2002
(cents)
(1.05)
$
Weighted average number of ordinary shares on issue during
the year used as the denominator in calculating basic
earnings per share
208,280,686
211,336,743
Earnings used in calculating diluted and basic earnings per share
(571,633)
(2,226,113)
(b) Diluted Earnings Per Share
Diluted earnings per share is the same as basic earnings per share as there are no potential ordinary shares
that are dilutive.
5.
EVENTS SUBSEQUENT TO BALANCE DATE
There has not arisen since the end of the financial year any item, transaction or event of a material and unusual
nature likely, in the opinion of the Directors of the Company, to affect substantially the operations of the
economic entity in subsequent financial years with the exception of:-
Issue of Shares and Options
On 12 August 2003, the Company issued 5,000,000 fully paid shares at 1 cent per share to Contiguous Millennium
Fund together with the following unlisted options to provide additional working capital:
Number of Options
Exercise Price
Expiry Date
4,500,000
4,200,000
3,800,000
1.1 cents
1.2 cents
1.3 cents
31 March 2004
31 December 2004
30 November 2005
In addition, on 4 September 2003, 3,000,000 fully paid shares at 1 cent per share were issued to Dr L Pretorius, a
director, in lieu of consulting services.
SALES REVENUE
There was no sales revenue during the year (2002: nil)
FULL FINANCIAL REPORT
Further financial information can be obtained from the full financial report which is available, free of charge, on
request from the Company. A copy may be requested by calling (08) 9381 4366.
P A L A D I N R E S O U R C E S L T D
6.
7.
2 2
D I R E C T O R S ’
D E C L A R A T I O N
The directors declare that in their opinion, the concise financial report of the consolidated entity for the year ended 30
June 2003 as set out on pages 16 to 22 complies with Accounting Standard AASB 1039: Concise Financial Reports.
The financial statements and specific disclosures included in this concise financial report have been derived from the
full financial report for the year ended 30 June 2003.
The concise financial report cannot be expected to provide as full an understanding of the financial performance,
financial position and financing and investing activities of the consolidated entity as the full financial report, which as
indicated in Note 7, is available on request.
This declaration is made in accordance with a resolution of the directors.
John Borshoff
DIRECTOR
Perth
30th September 2003
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I N D E P E N D E N T A U D I T R E P O R T
T O T H E M E M B E R S O F P A L A D I N R E S O U R C E S L T D
SCOPE
We have audited the concise financial report of Paladin Resources Ltd (the Company) for the financial year ended 30
June 2003 as set out on pages 16 to 23, in order to express an opinion on it to the members of the Company. The
Company's Directors are responsible for the concise financial report.
Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to
whether the concise financial report is free of material misstatement. We have also performed an independent audit of
the full financial report of the company and its controlled entities for the year ended 30 June 2003. Our audit report on
the full financial report was signed on 30 September 2003 and was not subject to any qualification.
Our procedures in respect of the audit of the concise financial report included testing that the information in the
concise financial report is consistent with the full financial report and examination on a test basis, of evidence
supporting the amounts, discussion and analysis and other disclosures which were not directly derived from the full
financial report. These procedures have been undertaken to form an opinion whether, in all material respects, the
concise financial report is presented fairly in accordance with Accounting Standard AASB 1039 : Concise Financial
Reports, issued in Australia.
The audit opinion expressed in this report has been formed on the above basis.
AUDIT OPINION
In our opinion, the concise financial report of the Company and its controlled entities for the year ended 30 June 2003
complies with Accounting Standard AASB 1039 : Concise Financial Reports.
RSM BIRD CAMERON PARTNERS
Chartered Accountants
Perth, WA
Dated: 30 September 2003
S C CUBITT
Partner
2 4
P A L A D I N R E S O U R C E S L T D
A D D I T I O N A L
I N F O R M A T I O N
P u r s u a n t
t o
t h e L i s t
i n g R e q u i
r e m e n t s o f
A u s t
r a l
i a n
S t o c k E x c h a n g e L i m i
t e d a s a t
3 0 S e p t e m b e r
2 0 0 3
(a) Distribution and number of holders
SHAREHOLDERS
OPTIONHOLDERS
21.01.2004
1 -
1,000
1,001 -
5,000
5,001 -
10,000
10,001 -
100,000
100,001 - maximum
21
105
216
1,073
399
1,814
31
211
110
195
65
612
832 shareholders hold less than a marketable parcel of shares.
587 optionholders (21.01.2004) hold less than a marketable parcel of options.
(b) Substantial shareholders (5% or more of issued capital).
J Borshoff and associated companies
(c)
The twenty largest shareholders hold 35.37% of the total shares issued.
Holder
Aylworth Holdings Pty Ltd
Merrill Lynch (Australia) Nominees Pty Ltd
Mr G J Buchanan & Mrs H J Buchanan
Dr L E Pretorius
Mr R A Healy & Mrs H M Healy
Nefco Nominees Pty Ltd
Mr R J Pilley
Reynolds (Nominees) Pty Limited
Citicorp Nominees Pty Limited
Mrs J A Godwin
Shar Holdings Pty Ltd
Mr R W Crabb & Mrs C J Crabb
Mr J U Blanchard III
Calm Holdings Pty Ltd
Strategic Consultants Pty Ltd
Mr H Leung
Tarmel Pty Limited
Alpenrose Investments Inc
Aurex Pty Ltd
Trio Investments Pty Ltd
No. of Shares
11,843,237
11,414,985
10,080,434
8,000,000
7,500,000
5,000,000
5,000,000
5,000,000
4,544,863
3,938,300
3,778,401
3,748,050
2,777,778
2,750,000
2,184,800
2,000,000
1,867,141
1,730,000
1,701,861
1,698,655
%
4.33
4.17
3.68
3.00
2.74
1.83
1.83
1.83
1.66
1.44
1.38
1.37
1.02
1.01
0.80
0.73
0.68
0.63
0.62
0.62
96,558,505
35.37
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A D D I T I O N A L
I N F O R M A T I O N
P u r s u a n t
t o
t h e L i s t
i n g R e q u i
r e m e n t s o f
A u s t
r a l
i a n
S t o c k E x c h a n g e L i m i
t e d a s a t
3 0 S e p t e m b e r
2 0 0 3
(d) The twenty largest optionholders (21.01.2004) hold 70.07% of the total options issued.
Holder
Mr Lionel Henry Evans
Mr A D Dimmock
Dr S L Chiam
Kapiri Holdings Pty Ltd
Danny A Baayoun & Co Pty Ltd
Ms S Proud
Wakeford Holdings Pty Ltd
Mandevilla Pty Ltd
Aylworth Holdings Pty Ltd
Mr P J Hay
Mrs V I Sanos & Mr M L Sanos
Miss L J Petrie
Mr A Harrison
Mr G W Thomas
Hermes Capital Pty Ltd
Mr A Todarello
Dr L E Pretorius
Grundy Nominees Pty Ltd
Mr J Grover
Shar Holdings Pty Ltd
No. of Shares
8,000,000
5,982,198
5,120,301
3,000,000
2,500,000
2,348,594
2,256,886
2,071,429
1,691,892
1,500,000
1,500,000
1,449,177
1,283,055
1,066,166
1,000,000
800,000
750,000
678,572
594,286
539,772
%
12.70
9.50
8.13
4.76
3.97
3.73
3.58
3.29
2.69
2.38
2.38
2.30
2.04
1.69
1.59
1.27
1.19
1.08
0.94
0.86
44,732,328
70.07
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P A L A D I N R E S O U R C E S L T D
A D D I T I O N A L
I N F O R M A T I O N
P u r s u a n t
t o
t h e L i s t
i n g R e q u i
r e m e n t s o f
A u s t
r a l
i a n
S t o c k E x c h a n g e L i m i
t e d a s a t
3 0 S e p t e m b e r
2 0 0 3
(e) Voting rights
For all shares, voting rights are one vote per member on a show of hands and one vote per share in a poll.
(f) Mining Tenements held -
Project
Tenement
Interest % JV Partner/s
Operator
URANIUM PROJECTS
WESTERN AUSTRALIA
Manyingee
Oobagooma
SOUTH AUSTRALIA
Siccus
Lake Elder
Mt Yerila
NORTHERN TERRITORY
3 ML's
100%
4 EL(A)'s
100%
-
-
-
-
1 EL
1 EL
1 EL
90%
20%
15%
Signature Resources NL
Paladin
Quasar Resources Pty Ltd
Quasar Resources Pty Ltd
Quasar Resources Pty Ltd
J E Risinger
Quasar Resources Pty Ltd
N E Arunta
1 EL
100%
-
-
MALAWI - AFRICA
Kayelekera
1 EPL
90%
Balmain Resources Pty Ltd
Paladin
NAMIBIA - AFRICA
Langer Heinrich
1 MDRL
100%
-
-
NON-URANIUM PROJECTS
SOUTH AUSTRALIA
Mt Lofty Ranges
2 EL's
90%
Absolut Resources Corporation Paladin
Reaphook JV
1 EL
7.5%
Perilya Limited
Perilya Limited
NORTHERN TERRITORY
Davenport
3 EL(A)'s
30%
Newmont NFM Pty Ltd
Newmont NFM Pty Ltd
EPL
Exclusive Prospecting Licence (Malawi)
MDRL Mineral Deposit Retention Licence (Namibia)
ML
(A)
M
EL
Mining Lease (Australia)
Pending Application
Mining Lease (WA)
Exploration Licence (SA and NT)
EL(A)
Exploration Licence Application (SA and NT)
EPL
Exclusive Prospecting Licence (Malawi)
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C O R P O R A T E D I R E C T O R Y
DIRECTORS
Mr Rick Wayne Crabb (Chairman)
Mr John Borshoff (Managing Director)
Dr Leon Pretorius (Director)
COMPANY SECRETARY
Ms Gillian Swaby
REGISTERED OFFICE
1st Floor, 245 Churchill Avenue
Subiaco Western Australia 6008
(PO Box 201, Subiaco)
Telephone:
(+61 8) 9381 4366
Facsimile:
(+61 8) 9381 4978
Email:
Web:
paladin@paladinresources.com.au
www.paladinresources.com.au
SHARE REGISTER
Computershare Investor Services Pty Limited
AUDITORS
SOLICITORS TO THE COMPANY
Level 2, 45 St George’s Terrace
Perth Western Australia 6000
Telephone:
(+61 8) 9323 2000
Facsimile:
(+61 8) 9323 2033
RSM Bird Cameron Partners
8 St George’s Terrace
Perth Western Australia 6000
Blakiston & Crabb
1202 Hay Street
West Perth Western Australia 6005
2 8
P A L A D I N R E S O U R C E S L T D
L A N G E R H E I N R I C H
U R A N I U M D E P O S I T
T e s t
M i n i n g T r e n c h
( G e n c o r
1 9 7 8 )
.
E x c a v a t e d 8 0 , 0 0 0 t
o f
o r e g r a d i n g 0 . 0 1 % U 3 O 8 .
P A L A D I N R E S O U R C E S L T D
A C N 0 6 1 6 8 1 0 9 8
1st Floor, 245 Churchill Avenue, Subiaco WA 6008
www.paladinresources.com.au