Paladin Energy Annual Report 2022

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FY2022 Annual Report · Paladin Energy

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ANNU AL REPORT
20 22

Contents

Chairman’s Letter

Insights from the CEO

Operating and Financial Review

Ore Reserves and Mineral Resources

Environmental, Social and Governance

Corporate Governance Statement

Directors’ Report

Remuneration Report

Auditor’s Independence Declaration

Contents of Financial Report

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Directors’ Declaration

Independent Auditor's Report

Additional Information

Corporate Directory

100

105

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

Sustainability is at the
core of every action we
take as a company, and it
ensures we remain firmly
committed to our people,
the environment and our
community – today and
well into the future.

Chairman’s Letter

Dear Shareholders,

Financial Year 2022 saw Paladin make material
progress toward restarting production at our globally
significant Langer Heinrich Mine. With a well-defined
mine restart plan, a strong and growing uranium
sales offtake portfolio and excellent uranium market
fundamentals, the Company was pleased to announce,
subsequent to year end, the decision to return the
Langer Heinrich Mine to production with first volumes
targeted for the first quarter of Calendar Year 2024.

To de-risk the future restart of the Langer Heinrich
Mine, in March 2022 the Company undertook an
equity raising to provide funding for the restart of
uranium mining operations at the Langer Heinrich Mine
and to continue to advance our uranium marketing and
exploration activities. This equity raising, coupled with
a retail investor focused Share Purchase Plan, was
heavily over-subscribed and I would like to thank our
shareholders for their ongoing support and welcome
all new shareholders to our register.

At Paladin we will contribute significantly to global
decarbonisation through clean nuclear energy by the
restart of our Langer Heinrich Mine. Nuclear energy
remains one of the most cost effective and lowest
carbon emitting forms of energy generation now and
it is expected to continue in the medium and longer
term. Growing global demand for electricity, coupled
with targets for reduced CO2 emissions, will ensure
nuclear energy plays a key role in the decarbonisation
of global power generation. Paladin continues to
look forward to positively contributing to global
decarbonisation.

Our activities continued to be underpinned by our
core Sustainability Commitments: Health, Safety and
Wellbeing, People and Opportunity, Community and
Social Investment, and Environmental Stewardship.
Sustainability standards are vitally important to us and
we work hard to ensure that both our personal and
our organisational values and actions exceed those
standards.

Our significant progress during the year reflects the
support and contributions of all our stakeholders. I
would like to extend my thanks to our Paladin staff
across all our operations. Their ongoing hard work and
commitment to our efforts in advancing the Langer
Heinrich Mine towards restarting production are greatly
appreciated. Most especially I would like to thank our
shareholders for continuing to offer trust and support
as we return Paladin to production. Together, we look
forward to forging a positive and sustainable future for
our Company and for the planet.

Yours faithfully

Cliff Lawrenson
Chairman

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022As the world continues to
move towards a decarbonised
economy, Paladin is in the
enviable position of being
able to make a significant
contribution, underpinned by
a world class, long life mine
located in a premier jurisdiction.

Insights from the CEO

Dear Shareholders,

Paladin is pleased to announce a successful 2022
Financial Year (FY2022), culminating in July 2022 with
the announcement to restart production at the Langer
Heinrich Mine. The decision to return the mine to
production was supported by:

• a successful uranium marketing strategy that has
delivered cornerstone offtakes with leading global
counterparties

• continuing strong uranium market fundamentals

with positive macro tailwinds for uranium driven by
nuclear’s position as a reliable, low carbon baseload
power source

• a well-defined Mine Restart Plan1 providing a
low-risk pathway to a return to production.

Early works activities, including the mobilisation of
key staff and contractors and the ordering of long
lead time capital equipment commenced in the June
quarter and the Company is targeting commercial
uranium production at Langer Heinrich in the first
quarter of Calendar Year 2024 (CY2024).

The extensive workstreams we have conducted
reinforce our confidence in Langer Heinrich as a
low-risk, robust, long life operation that is positioned
to take advantage of improving uranium market
conditions and deliver sustainable value creation for
all of our stakeholders.

URANIUM, NUCLEAR ENERGY
AND DECARBONISATION

Uranium mining and processing are critical
components of the nuclear fuel cycle as they provide
the raw material for producing clean, sustainable
baseload electricity. With growing global demand for
electricity, and targets set for reduced CO2 emissions,
nuclear energy will continue to play a key role in the
decarbonisation of global power generation.

Nuclear energy provided approximately half of the
USA’s carbon-free electricity in 2021, making it their
largest domestic source of low carbon energy. Nuclear
power plants do not emit greenhouse gases while
generating electricity, and every reduction in CO2
emissions reduces the impacts of climate change
and global warming. Nuclear expansion remains a
focus in Asia, with 35 reactor builds underway across
the region. Europe and North America are focused
on preserving existing nuclear assets and looking to
the future via new reactor programs that include the
deployment of small modular reactors.

Recent events have had profound implications for
global energy markets. These include geopolitical
upheavals resulting from Russia’s invasion of Ukraine,
the ongoing COVID-19 pandemic and increasingly
urgent decarbonisation measures. The role of
nuclear power in providing energy security and
combatting global warming is increasingly recognised,
providing the nuclear industry with long term growth
opportunities.

1ASX Announcement “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update” dated 4 November 2021

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022SUSTAINABILITY AND PAL ADIN

OUTLOOK

Paladin is committed to the core principle of delivering
value through sustainable development. Our Paladin
Values support every decision we take. With these
strong foundations, we can focus on achieving
economic, social and environmental sustainability in
balanced and successful ways for all stakeholders.
Paladin is pleased to provide further details of our
Sustainability Commitment on pages 20 to 25. We look
forward to releasing our annual Sustainability Report in
October 2022.

OUR PEOPLE

People are at the heart of our Company. Our strategic
recruitment processes ensure that our organisation
has the expertise to successfully execute the
Company’s strategy. We are a global business with
capability in Australia, Namibia, Canada, USA and
Europe.

We put the health, safety and wellbeing of our
workforce and all stakeholders at the forefront, with
a positive culture of safety that underpins all our
decisions and actions. Importantly, during the year
we recorded no lost-time injuries.

The decision to commence restart activities at the
Langer Heinrich Mine marked a significant milestone
for the Company. I look forward to updating you all on
our restart progress in the coming periods.

Paladin will continue to maintain our corporate
spending discipline, whilst ramping up activities at the
Langer Heinrich Mine to support operational readiness
and uranium marketing. The Company is also pleased
to recommence exploration fieldwork and development
studies at the high-grade, advanced exploration
Michelin Project in Labrador, Canada.

I would like to thank our Board of Directors for their
ongoing commitment and support. I would also like
to thank our employees, contractors and consultants
for their dedication, professionalism and efficiency
throughout the year.

Finally, I would like to extend my sincere thanks to you,
our shareholders, for showing continued support for
our Company. The positive formal launch of the Langer
Heinrich restart, a robust outlook for uranium markets
and the knowledge that we actively contribute to the
decarbonisation of global electricity generation puts us
in a strong position for future success.

Yours faithfully

Ian Purdy
Chief Executive Officer

Western utilities are actively seeking to reduce future
reliance on Russian supply of nuclear fuel due to the
logistical disruptions and potential sanctions driven by
Russia’s actions, which also threaten to impact Kazakh
and Uzbek supplies. Nuclear fuel markets are also
moving to transition away from Russia for enrichment
and uranium conversion services.

The rise of secondary uranium demand was a key
theme during FY2022. Primarily driven by the Sprott
Physical Uranium Trust, approximately 50Mlb of
uranium was sequestered from the market during
the year. Both spot and longer term market prices
increased substantially during FY2022.

Driven by market uncertainties and reduced inventory
availability, 2022 has seen the return of utilities into
the long term uranium market. Contracted volumes
for the first half of the year already exceed annual
volumes recorded during 2020 and 2021, with
additional demand growth anticipated over the
remainder of 2022.

RESTARTING THE L ANGER
HEINRICH MINE

The decision to commence restart activities at the
Langer Heinrich Mine represents the culmination of
years of detailed planning and execution work which
has provided a low-risk pathway back to production.

To ensure a successful execution of restart activities
and the delivery of the Langer Heinrich Mine into
production, Paladin has appointed ADP Group, a
leading African focused engineering company, to
provide EPCM services. Paladin’s in-country project
team has been strengthened with the appointment of
a Restart Project Director who will be supported by
Paladin’s in-country operations team.

The significant and detailed planning for the
recommencement of activities at Langer Henrich
has provided a detailed scope of the key work
activities and critical path items for the successful
commencement of production.

Key work packages for FY2023 include:

• completion of detailed engineering and design

• purchase of all project materials and equipment

packages

• mobilisation and commencement of multi-disciplined

plant refurbishment and upgrade works

• work packages to ensure the stable and long

term provision of water and power to site.

Our well-defined restart plan and strong execution
project capability provide a low-risk pathway to a
return to production, targeted for the first quarter of
CY2024.

OFFTAKE PORTFOLIO

Paladin achieved an important milestone during
the financial year with a Tender Award received for
an offer to supply uranium concentrates to a major
North American power utility. This was executed as a
binding Offtake Agreement subsequent to year end.
The Offtake Agreement is consistent with Paladin’s
uranium marketing strategy of securing contracts with
industry leading counterparties and complements the
Company’s life of mine offtake agreement with CNNC3.

We are continuing our uranium marketing efforts, with
the intention of building a contract portfolio with high
quality counterparties, delivering a balance of pricing
mechanisms and geographic diversification, and will
prioritise contracts with price-protected mechanisms.

The strength of the Company’s uranium sales offtake
coupled with the strong uranium market fundamentals
were primary factors in the decision to restart
operations at Langer Heinrich.

STRONG BAL ANCE SHEET

Our already robust balance sheet was further
strengthened during the year with a successful
institutional placement of new fully paid ordinary
shares and a Share Purchase Plan which jointly
raised A$215M (before costs). Both the institutional
placement and Share Purchase Plan were strongly
supported, and I would like to thank our existing
shareholders and new shareholders for their support.
At the end of the financial year, Paladin held A$177.1M
in cash, which de-risks restart execution and
provides a platform for further uranium marketing and
exploration activities.

2Minerals Council of Australia emissions data applied to Langer Heinrich Uranium Life of Mine production as detailed in the ASX Announcement
referenced in footnote 1. All material assumptions underpinning the production target continue to apply and have not materially changed

3CNNC Overseas Uranium Holding Limited

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022Operating and
Financial Review

OVERVIEW OF OPERATIONS

Paladin Energy Ltd (ASX:PDN OTCQX:PALAF) is
an Australian listed uranium company focused on
returning the Langer Heinrich Mine to commercial
production in the first quarter of CY2024. The Langer
Heinrich Mine is a globally significant, long life
operation, having already produced over 43Mlb U3O8
prior to operations being suspended in 2018 due to
low uranium prices.

Beyond the Langer Heinrich Mine, the Company also
owns a large global portfolio of uranium exploration
and development assets. Nuclear power remains
a leading sustainable source of low-carbon global
electricity generation.

The Company is incorporated under the laws of
Australia with a primary share market listing on
the Australian Securities Exchange (ASX) and the
Namibian Stock Exchange (NSX). The Company also
trades on the OTCQX market in the United States of
America.

HIGHLIGHTS

Health and Safety

• Paladin had no lost-time injuries or reportable

environmental incidents during FY2022

• The Company continued to maintain appropriate
protocols across all locations to minimise the
potential transmission of COVID-19.

Operational Performance

• During the year, Paladin released the Langer
Heinrich Mine Restart Plan Update, Mineral
Resource and Ore Reserve Update

• On 19 July 2022, Paladin announced the decision

• Exploration fieldwork and development studies

have recommenced at the Michelin Project, with
the Michelin summer field program underway. Work
includes ground mapping, sampling, prospecting and
an airborne gravity-gradiometry survey, with results
expected by the end of 2023.

Uranium Marketing Activities

• In March 2022, the Company secured a Tender
Award to supply uranium concentrates to a
major North American power utility. The Offtake
Agreement was executed in July 2022, with supply
to commence in 2024

to return the Langer Heinrich Mine (LHM) to
production, with first volumes targeted for the first
quarter of CY2024

• Paladin continues to engage with global power
utilities, with a view to securing further offtake
agreements.

Corporate

• The Company successfully completed an

institutional placement (Placement) and a Share
Purchase Plan (SPP) of new fully paid ordinary
shares in Paladin (New Shares). The Placement
raised A$200M (before costs) and the SPP
raised A$15M (before costs) through the issue
of approximately 298.6 million New Shares at an
offer price of A$0.72 per share. The offer price
represents:

- 8.9% discount to the last closing price of Paladin
shares on ASX of $0.79 on 30 March 2022 (being
the last date Paladin shares traded prior to
announcement of the Placement)

- 12% discount to the 5-day volume average

weighted price (VWAP) up to and including 30
March 2022

• Paladin re-entered the ASX 200 in December 2021

as part of the ASX Quarterly Rebalance

• The Company had cash and cash equivalents at 30
June 2022 of US$177.1M (excluding restricted cash
of US$1M).

• The decision to restart production at the LHM is

supported by strong uranium market fundamentals
and continued progress on uranium marketing
activities, including the execution of a binding
Offtake Agreement for the previously announced
Tender Award

• The LHM remained on care and maintenance

during the year and there were no production or
development activities during the year.

Exploration

• During the year, the Company undertook the work
required to meet minimum tenement commitments
at its exploration projects in Canada and Australia,
and rehabilitation monitoring continued across all
locations without incident

• Under the terms of the Michelin Joint Venture
Agreement, a mandatory transfer of 5% from
Michelin Nominees Ltd to Aurora Energy Ltd (a
wholly owned subsidiary of the Company) was
completed, increasing the Company’s interest from
65% to 70%

• As required under the terms of the Michelin Joint
Venture Agreement, Paladin will be conducting
a sales process for the Michelin Project, acting
reasonably and taking into account the commercial
interests of the related bodies corporate

• Paladin has the right to determine if the terms of any
offer made under the sales process are acceptable,
and also has a right of pre-emption to acquire the
Michelin Joint Venture partner’s interest in the
Project

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
FINANCIAL PERFORMANCE

Key financial performance metric

Year ended 30 June

2022

2021

% Change

Earnings

Average selling price

U3O8 sold

Revenue

Cost of sales

US$/lb

47.00

29.85

100,000

US$’000

4,700

US$’000

(4,693)

2,985

(2,973)

Net loss after tax from continuing operations

US$’000

(43,939)

(58,258)

(25)

Cash Flows

Cash flows from operating activities

Capital expenditure

Free cash flows

Financial Position

US$’000

(6,794)

(3,427)

US$’000

(10,221)

(5,565)

(3,261)

(8,826)

Unrestricted cash and cash equivalents

US$’000

177,066

30,661

Debt (principal amount + accrued interest)

Net debt

Total equity

US$’000

358,412

246,708

Gearing ratio (Net debt / (net debt + equity))

477

Earnings

Net loss after tax from continuing operations
decreased by 25%, mainly as a consequence of
reduced finance costs of US$13,006,000 (2021:
US$32,412,000) arising from the redemption of the
Senior Secured Notes in April 2021. This was offset
by higher foreign exchange losses of US$8,179,000
(2021: foreign exchange loss US$3,934,000) which
are predominantly due to the increase in Australian
dollars held after the completion of the equity raising,
offset by the foreign exchange translation of the
environmental rehabilitation provision in Namibia. The
Namibian dollar depreciated 13% against the USD
during the year, from US$1:N$14.3121 at 30 June 2021
to US$1:N$16.1471 at 30 June 2022.

Cash Flows

The Group had unrestricted cash and cash equivalents
at 30 June 2022 of US$177.1M. Unrestricted cash and
cash equivalents increased by US$146M during the
year comprising of the following cash flows:

• Placement and Share Purchase Plan – net proceeds

from the issue of shares of US$156,585,000

• Proceeds from sale of investments – proceeds

from sale of 90M shares in Lotus Resources Ltd of
US$13,386,000

• Proceeds from sale of Paladin (Africa) Ltd –

receipt of the third tranche of repayment of funds
advanced to provide security for the US$10,000,000
environmental performance bond from Lotus
Resources Ltd of US$2,000,000

• Shareholder loans advanced – advance from CNNC
to Langer Heinrich Uranium (Pty) Ltd of US$811,000

• Receipts from customers – proceeds from a spot
sale of 100,000lb of uranium of US$4,700,000

• Cost of sales – cost of sales relating to the spot sale

of US$4,692,500

• Corporate expenditure – corporate expenditure of

US$4,183,000

• Langer Heinrich expenditure – expenditure for
care and maintenance at Langer Heinrich Mine
of US$2,843,000

• Langer Heinrich restart study costs – restart study

expenditure of US$2,242,000

• Exploration expenditure – minimum tenement
commitments at its exploration projects of
US$1,005,000

• Property, plant and equipment – payments for
property, plant and equipment of US$180,000

• Effect of movement in exchange rates on cash

held – US$16,156,000 was predominantly due to an
increase in Australian dollar holdings following the
completion of the equity raising.

Financial Position

Unrestricted Group cash and cash equivalents
increased by 477% to US$177,066,000. At 30 June
2022 Paladin holds no corporate debt. The Company’s
gearing ratio was Nil% from 30 June 2021 to 30 June
2022.

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022Ore Reserves and
Mineral Resources

PROJECT LOCATIONS AND RESOURCE OVERVIEW

Canada
Michelin
Advanced
Exploration

Namibia
Langer Heinrich
Returning to Production

Australia
Manyingee &
Carley Bore
Advanced
Exploration

Australia
Head Office

Unless specifically noted, Mineral Resources were prepared and first disclosed under the JORC Code 2004. These estimates have not been updated since to
comply with JORC Code (2012) on the basis that the information that the estimates are derived from have not materially changed since it was last reported.

Australia
Mount Isa
Advanced
Exploration

NAMIBIA

Langer Heinrich

Langer Heinrich is located in central western Namibia
approximately 80km east of Swakopmund. Langer
Heinrich is a surficial calcrete type uranium deposit
containing a JORC Code (2012) compliant Mineral
Resource of 140Mt containing 128.1Mlb U3O8 at a
grade of 415ppm U3O8 and 41.5Mlb V2O5 at grade of
135ppm V2O5 at a cut-off of grade of 200ppm U3O8
with a cut-off grade of 250ppm U3O8 applied to
stockpiles.

The deposit is situated in the 15km long paleo drainage
system located within the Gawib River valley between
the Langer Heinrich and Schifferberg Mountains.

Langer Heinrich Mine Ore Reserves are estimated at
84.8Mt at a grade of 448ppm U3O8 containing 83.8Mlb
U3O8.

The Langer Heinrich Mine transitioned to care and
maintenance in August 2018, and the decision to
return the Langer Heinrich Mine to production was
announced in July 2022. Paladin's interest in Langer
Heinrich is 75%.

CANADA

Michelin Project

Paladin, through its wholly owned subsidiary Aurora
Energy Ltd (Aurora), holds rights to 52,250 hectares
of mineral claims within the Central Mineral Belt of
Labrador (CMB), Canada, approximately 140km north
of Happy Valley-Goose Bay and 40km southwest of
the community of Postville.

Paladin currently holds a 70% interest (which increased
from 65% in May 2022) in a special purpose joint
venture (the Michelin Joint Venture) which owns the
Michelin Project. The Michelin Joint Venture includes
a farm out agreement over a five-year period whereby
Paladin will receive an additional 5% participating
interest in the Michelin Project on an annual basis until
May 2023, in return for Paladin funding all obligations
for the Michelin Project over this period.

The mineral claims cover a significant area of
prospective ground over the CMB. The claims contain
105.6Mlb U3O8 Measured and Indicated Mineral
Resources as well as an additional 22Mlb U3O8 Inferred
Mineral Resource in six deposits. The largest of these
deposits is Michelin which contains a total JORC Code
(2012) compliant Mineral Resource of 92.0Mlb U3O8,
82.2Mlb of which is classified Measured and Indicated.
Michelin is still open along strike and at depth. Cut-off
grades for all deposits except Jacques Lake reflect
the use of open cut (200ppm) and underground
(500ppm) mining methodologies in the determination
of prospects for eventual economic extraction.

For Jacques Lake, there was insufficient Mineral
Resources remaining after pit optimisation studies to
warrant any portion being considered for underground
mining.

As required under the terms of the Michelin Joint
Venture Agreement, Paladin will be conducting a sales
process for the Michelin Project:

• Paladin has the right to determine if any offer made
under the potential sales process is acceptable

• Paladin has a right of pre-emption to acquire the

minority shareholder’s interest in the joint venture.

QUEENSL AND

Mount Isa Project

The Mount Isa Project, which is wholly owned by
Paladin, is located 40km north of Mount Isa and
consists of six Mineral Development Licences.

The Mount Isa Project includes 10 deposits containing
106.2Mlb U3O8 Measured and Indicated Mineral
Resources as well as 42.2Mlb U3O8 Inferred Mineral
Resources at a cut-off grade of 250ppm U3O8 for all
deposits except Valhalla, which utilised a cut-off grade
of 230ppm U3O8.

WESTERN AUSTRALIA

Manyingee Project

Manyingee is located in the north-west of Western
Australia, 1,100km north of Perth and 85km inland
from the coastal township of Onslow. The property
is comprised of three mining leases covering 1,307
hectares. Field trials by AFMEX demonstrated that
the Manyingee sandstone-hosted uranium deposit
is amenable to extraction by in-situ recovery (ISR) in
1985.

Manyingee contains an Indicated Mineral Resource of
15.7Mlb U3O8 grading 850ppm and an Inferred Mineral
Resource of 10.2Mlb U3O8 grading 850ppm (JORC
Code (2012) compliant) at a cut-off grade of 250ppm
U3O8.

Carley Bore

Carley Bore is located approximately 100km south of
Manyingee in Western Australia. Carley Bore consists
of two contiguous exploration licences with granted
retention status.

The Carley Bore deposit contains JORC Code (2012)
compliant Mineral Resources, 5.0Mlb U3O8 grading
420ppm in the Indicated category and 10.6Mlb U3O8
grading 280ppm in the Inferred category at a cut-off
grade of 150ppm U3O8. Potential exists for extensions
to mineralisation north and south of the estimated
Carley Bore Mineral Resource.

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
MINERAL RESOURCES AND ORE RESERVES SUMMARY

The following tables detail the Company’s Mineral Resources and Ore Reserves and the changes that have
occurred within FY2022. There were no material changes to the Company’s Mineral Resources and Ore Reserves
for Canada and Australia.

30 June 2021

30 June 2022

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

Uranium Mineral Resources

NAMIBIA: Langer Heinrich1 2

Measured

In-situ

MG ROM stockpiles

LG ROM stockpiles

Total Measured

66.2

4.7

26.1

97.0

490

520

325

445

71.9

5.4

18.7

79.1

6.3

20.2

95.9

105.6

450

510

325

430

78.6

7.1

12.9

1.6

6.7

1.7

14.5

(5.9)

(4.2)

100.2

8.6

4.3

Indicated

Inferred

TOTAL

In-situ

Uranium Mineral Resources

CANADA

Measured Michelin3

Rainbow

Indicated

Gear

Inda

Jacques Lake3

Michelin

Nash

Rainbow

Inferred

Gear

Inda

Jacques Lake3

Michelin3

Nash

Rainbow

18.8

435

18.0

23.5

375

19.5

4.7

1.5

6.3

122.1

420

445

5.8

11.0

119.7

140.1

345

415

8.4

4.7

128.1

18.0

2.6

8.4

30 June 2021

30 June 2022

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

17.6

0.2

0.4

1.2

13.0

20.6

0.7

0.8

0.3

3.3

3.6

4.5

0.5

0.9

965

920

770

690

630

980

830

860

920

670

550

985

720

810

37.6

0.4

0.6

1.8

18.0

44.6

1.2

1.4

0.6

4.8

4.4

9.9

0.8

1.6

17.6

0.2

0.4

1.2

13.0

20.6

0.7

0.8

0.3

3.3

3.6

4.5

0.5

0.9

965

920

770

690

630

980

830

860

920

670

550

985

720

810

37.6

0.4

0.6

1.8

18.0

44.6

1.2

1.4

0.6

4.8

4.4

9.9

0.8

1.6

TOTAL Canada

67.7

860

127.7

67.7

860

127.7

Figures may not add due to rounding.

Uranium Mineral Resources

AUSTRALIA

30 June 2021

30 June 2022

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

Measured

Valhalla

16.0

820

28.9

16.0

820

28.9

Indicated

Andersons

Bikini

Duke Batman

Odin

Skal

Valhalla

Carley Bore4

Manyingee4

Inferred

Andersons

Bikini

Duke Batman

Honey Pot

Mirrioola

Odin

Skal

Valhalla

Watta

Warwai

Carley Bore4

Manyingee4

1.4

5.8

0.5

8.2

14.3

18.6

5.4

8.4

0.1

6.7

0.3

2.6

2.0

5.8

1.4

9.1

5.6

0.4

17.4

5.4

1,450

495

1,370

555

640

840

420

850

1,640

490

1,100

700

560

590

520

640

400

360

280

850

4.6

6.3

1.6

10.0

20.2

34.5

5.0

15.7

0.4

7.3

0.7

4.0

2.5

7.6

1.6

12.8

5.0

0.3

10.6

10.2

1.4

5.8

0.5

8.2

14.3

18.6

5.4

8.4

0.1

6.7

0.3

2.6

2.0

5.8

1.4

9.1

5.6

0.4

17.4

5.4

1,450

495

1,370

555

640

840

420

850

1,640

490

1,100

700

560

590

520

640

400

360

280

850

4.6

6.3

1.6

10.0

20.2

34.5

5.0

15.7

0.4

7.3

0.7

4.0

2.5

7.6

1.6

12.8

5.0

0.3

10.6

10.2

TOTAL Australia

135.4

635

189.8

135.4

635

189.8

Figures may not add due to rounding.

4JORC Code (2012) compliant

1JORC Code (2012) compliant. Cut-off of grade of 200ppm U3O8 applied to in-situ, with a cut-off grade of 250ppm U3O8 applied to stockpiles.
2ASX Announcement “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update“ dated 4 November 2021
3JORC Code (2012) compliant

1 6

1 7

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
Vanadium Mineral Resources

NAMIBIA: Langer Heinrich5 6

Measured

30 June 2021

30 June 2022

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

In-situ

MG ROM stockpiles

LG ROM stockpiles

Total Measured

66.2

4.7

26.1

97.0

160

170

105

145

23.3

1.8

6.0

79.1

6.3

20.2

31.1

105.6

145

165

105

140

25.5

12.9

2.2

0.5

1.6

(5.9)

(1.3)

2.3

4.7

32.5

8.6

1.4

Indicated

Inferred

In-situ

18.8

140

5.8

23.5

120

6.3

4.7

0.5

In-situ

TOTAL Namibia

6.3

122.1

135

145

1.9

11.0

38.8

140.1

115

135

2.7

4.7

41.5

18.0

0.8

2.7

Uranium Ore Reserves

NAMIBIA: Langer Heinrich5 6

Proved

Probable

Stockpiles

TOTAL Namibia

30 June 2021

30 June 2022

Change

Grade
ppm
U3O8

Mlb
U3O8

Grade
ppm
U3O8

Mlb
U3O8

42.0

13.1

30.8

85.9

525

485

355

458

48.5

14.0

24.0

48.3

10.0

26.5

86.5

84.8

488

464

369

448

52.0

10.2

21.6

83.8

6.3

(3.1)

(4.3)

3.5

(3.8)

(2.4)

(1.1)

(2.7)

Figures may not add due to rounding. Ore Reserves reported at a 250ppm U3O8 cut-off grade. Mineral Resources and Ore Reserves quoted on a 100%
basis. Mineral Resources are reported inclusive of Ore Reserves.

All the Company’s Mineral Resources and Ore Reserves are internally peer reviewed at the time of estimation and
are subject to ongoing review, as and when required. Should any Mineral Resources or Ore Reserves be utilised
within a Bankable or Definitive Feasibility Study, it is expected that an audit by independent experts would be
conducted.

The information in this Annual Report that relates to Mineral Resources is based on, and fairly represents,
information and supporting documentation compiled by David Princep BSc, P.Geo FAusIMM (CP), a Competent
Person who has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the
reporting standard JORC 2012. Mr Princep is a full- time employee of Gill Lane Consulting Pty Ltd and consults to
Paladin and is a current Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Princep consents to the
inclusion of this information in the form and context in which it appears.

The information in this Annual Report that relates to the Ore Reserves estimation for the Langer Heinrich Uranium
Project is based on, and fairly represents, information and supporting documentation compiled by Mr David
Varcoe, Principal Mining Engineer, for AMC Consultants Pty Ltd. Mr Varcoe is an employee of AMC Consultants
Pty Ltd and is a Competent Person who is a current Fellow of the Australasian Institute of Mining and Metallurgy
(AusIMM No: 105971). Mr Varcoe has sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined
in the reporting standard JORC 2012. Mr Varcoe consents to the inclusion of this information in the form and
context in which it appears.

5JORC Code (2012) compliant
6ASX Announcement “Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update“ dated 4 November 2021

1 8

1 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
Environmental, Social
and Governance

We value and respect all our
people as central to what we
do, embracing diversity and
promoting equal opportunities
to thrive and be recognised.

The Board has approved the adoption of the
Sustainability Accounting Standards Board (SASB)
framework. Paladin is establishing a framework to
incorporate the SASB Standards and Global Reporting
Initiative (GRI) Standards into the Company’s ESG
approach, and will further develop reporting and
disclosures in relation to the Task Force on Climate
Change Disclosures (TCFD).

Paladin condemns all forms of modern slavery, and we
are committed to following the UN Guiding Principles
on Business and Human Rights. We will comply with
the requirements under the Modern Slavery Act 2018
(Cth) as part of our Langer Heinrich Mine restart.

ESG Highlights and FY2022 Performance

SUSTAINABILITY COMMITMENTS

Over 1,700 Lost-Time Injury Free days

No environmental non-compliances or breaches

100% local workforce at LHM

40% of Paladin's Board and 30% of staff
are female

Independent Board and Independent Chair

Our ESG Reporting Framework

SASB reporting to be included in FY2023
Sustainability Report

Extend SASB reporting to include GRI
framework when the LHM returns to production
in 2024

Commitment to TCFD principles to include and
manage systemic financial risks associated with
climate change

Further developing our Modern Slavery
assessment, reporting and governance to
address modern slavery risks across our global
supply chain

Health, Safety and Wellbeing

People and Opportunities

We put the health, safety and wellbeing of our
workforce and all stakeholders at the forefront,
with a positive culture of safety that underpins
all our decisions and actions.

We value and respect all our people as central to
what we do, embracing diversity and promoting
equal opportunities to thrive and be recognised.

Community and Social Investment

Environmental Stewardship

We engage positively with local communities,
actively listening and contributing to their social
prosperity and development with integrity.

We protect the environment and work to minimise our
impacts on it, achieving continuous improvements in
sustainability practices and committing to support
emissions reductions to achieve the goals of COP26
and the Glasgow Climate Pact.

2 0

2 1

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022HEALTH, SAFETY AND WELLBEING

We put the health, safety and wellbeing of our
workforce and all stakeholders at the forefront, with
a positive culture of safety that underpins all our
decisions and actions.

At Paladin, we put the safety and wellbeing of our
people as our highest priority. Our goal is to actively
maintain a healthy, safe and secure work environment
by preventing injuries, accidents, incidents and illness.

During FY2022, we once again recorded no lost-time
injuries or reportable incidents. Throughout the year
we continued to promote safety and responsibility to
all our employees and contractors, underpinned by
the knowledge that injuries are preventable. We again
delivered operationally targeted safety interventions
and training programs, which included risk mitigation
assessment and measures, employee engagement
sessions and sharing of industry best practice.
Continuous improvement of our advanced safety
improvement processes was also a feature of our
activity during the year.

Strict procedures are followed as part of our radiation
protection measures, and calibrated equipment is
used to monitor employees, contractors, visitors and
specific work area exposure levels. The results are
provided on an annual basis to the Namibian National
Radiation Protection Authority for assessment, for
which Langer Heinrich has received annual approval.

Health providers counsel employees on healthy
lifestyles and identify risks including raised blood
pressure, cholesterol, and HIV exposure.

PEOPLE AND OPPORTUNITIES

We value and respect all our people as central to
what we do, embracing diversity and promoting
equal opportunities to thrive and be recognised.

Paladin is committed to workplace diversity and
recognises the benefits of employee and board
diversity arising from the recruitment, development
and retention of a talented, diverse and motivated
workforce.

At Paladin we recognise that our people are crucial
to our business. We strongly support them and
encourage them to grow. We are committed to
fostering a positive culture, promoting employee
engagement and encouraging a diverse and inclusive
workplace.

Employees and contractors are provided with growth
opportunities, and we strive to continually develop
our people’s skills and expertise through structured
learning and training. We provide local and regional
employment opportunities wherever possible. We
embrace our diverse mix of people, including different
ages, cultural backgrounds, genders, education and
experience levels, and actively foster the benefits from
collaboration.

COMMUNITY AND SOCIAL
INVESTMENT

We engage positively with local communities,
actively listening and contributing to their social
prosperity and development with integrity.

At Paladin we are committed to our local communities
and are focused on having a positive impact and
making meaningful contributions to their lives and
livelihoods. We achieve this through a range of
initiatives, including local recruitment practices,
establishing community development programs, and
procuring from local industries to support growth
and economic value to local regions. Stakeholder
engagements with local and government authorities
are key priorities, in addition to supporting local
community causes. Paladin delivered assistance
to those in need during the COVID-19 pandemic,
including the provision of equipment and oxygen
concentrators to the Directorate of Health in the
Erongo region, Namibia, for use in COVID-19 hospital
wards.

As the Langer Heinrich Restart Project ramps-up and
we move towards production in the first quarter of
CY2024, Paladin will increasingly be engaging with
the local community to ensure we make a positive
contribution to the community and we are recognised
as a good corporate citizen committed to providing
opportunities for the local community. The Company
recently participated in the Erongo Career Fair
2022 held in Swakopmund to engage with the local
community and provide information about employment
opportunities with the Langer Heinrich Mine. The
Paladin CEO and General Manager of Langer Heinrich
Mine also recently met with members of the Namibia
Institute Mining and Technology to provide them
with IT equipment as part of the Company’s ongoing
commitment to the local community.

ENVIRONMENTAL STEWARDSHIP

Lifecycle greenhouse gas emissions (GHG) for
different energy sources and technologies shows
nuclear power to have one of the lowest GHG
emissions intensity, comparable with solar and wind
and up to 100 times lower than coal which averages
~1,000 grams CO2 equivalent / kWh.

While renewable power sources such as wind and
solar are gaining market share in the global energy mix,
nuclear’s low emission intensity and higher capacity
factor will ensure that nuclear power, and uranium,
remain key components of carbon-free baseload
power production, as the world moves towards
decarbonisation.

Emissions Intensity by Energy Source1, g/kWh

At Paladin, we are committed to making a valuable
contribution to the reduction in carbon emissions.
The uranium that will be mined and processed at
the Langer Heinrich Mine will be used to resource
nuclear power plants, displacing gas and coal-fired
electricity. Paladin’s future production can reduce
CO2 emissions by an average of 58 million tonnes per
year and around 1.3 billion tonnes over the life of the
Langer Heinrich Mine. A reduction of 58 million tonnes
of CO2 emissions per annum is roughly equivalent to
forty percent of the total reported Scope 1 emissions
from Australian grid-connected generators, which
generated 148 million tonnes CO2 equivalent emissions
in 2020-2021 (Clean Energy Regulator).

Paladin is positioned and committed to ensure
our projects are delivered with a keen focus on
sustainability and on reducing our own Tier-1 carbon
emissions. We are undertaking benchmarking of our
historical water, fuel and carbon emissions footprint
to allow us to continue in our efforts to minimise our
footprint, and to improve the future performance of our
operations.

Paladin recognises the increasing global impacts
of climate change, however the financial impact
of climate change on our operations is currently
expected to be minimal. Paladin is focused on our role
in providing a low carbon fuel source to reduce CO2
emissions as part of the world’s energy transformation
in order to achieve climate change goals. Our
robust guidelines and policies for all our mining and
exploration activities focus primarily on water and land
use management, rehabilitation, mineral waste and
reducing greenhouse gas emissions.

1,200

1,000

800

600

400

200

2 2

2 3

Coal

Oil

Gas

Solar

Nuclear

Wind

Hydro

Source: 1) World Nuclear Association (WNA)

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022CORPORATE GOVERNANCE

The Paladin Board of Directors is responsible for Paladin’s corporate governance. The Board recognises the
importance of our corporate governance framework in establishing accountabilities, guiding and regulating
activities, monitoring and managing risks and optimising Paladin’s performance.

The Board also recognises the need to regularly review its system of corporate governance as best practice
evolves. Our current Paladin corporate governance framework uses as a reference the Corporate Governance,
Principles and Recommendations of the ASX Corporate Governance Council. Paladin is pleased to provide further
details in our Corporate Governance Statement on page 27.

Risk Management

Ethics and Whistleblowing

Paladin’s Code of Business Conduct and Ethics (Code)
requires Paladin’s officers, employees and associates,
in addition to certain third parties, to observe the
highest standards of business and personal ethics
in the course of carrying out their duties and
responsibilities. These persons must practise honesty
and integrity in fulfilling their responsibilities, and
comply with all applicable laws and regulations. Even
the best procedures and systems of control cannot
provide absolute safeguards against violations,
however Paladin's internal controls and the Code are
intended to prevent, deter and remedy any violation of
applicable laws and regulations.

The Risk Management Policy is the overarching
document that provides the foundation which supports
the framework and processes for the integration of risk
management into the Company’s business activities.
The purpose of this Policy is to:

• communicate the risk management principles upon
which the Paladin’s risk management framework is
designed

• confirm Paladin’s commitment to maintaining a risk
aware culture and embedding risk management
practices within operations

• detail roles and responsibilities relating to the

identification and management of risk throughout
the Group

• articulate the Group’s minimum requirements in

relation to risk management.

Paladin recognises that the identification and effective
management of risk, including prudent, informed risk
taking, is an essential part of Paladin’s aim of creating
long term shareholder value. The aim of this Policy is
to integrate risk management into Paladin’s strategy
and business and undertake activities in line with
Paladin’s Risk Appetite as defined by the Board.

STAKEHOLDERS

COMMUNITY

GOVERNMENT &
REGUL ATORS

SHAREHOLDERS

CUSTOMERS &
SUPPLIERS

EMPLOYEES

BOARD OF DIRECTORS

BOARD SUB-COMMITTEES

AUDIT & RISK
COMMITTEE

RENUMERATION
& NOMINATION
COMMITTEE*

TECHNICAL &
SUSTAINABILITY
COMMITTEE**

POLICIES &
PROCEDURES

CORPORATE
CULTURE & VALUES

RISK MANAGEMENT
& INTERNAL CONTROL
SYSTEM

CEO

2 4

2 5

*Renamed “Governance, Renumeration & Nomination Commitee” in FY2023
** Established FY2023

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022Corporate Governance
Statement

GOVERNANCE FRAMEWORK

The Board of Directors of Paladin Energy Ltd
recognises the importance of its corporate governance
framework in establishing accountabilities, guiding
and regulating activities, monitoring and managing
risks and optimising Paladin’s performance. Paladin,
as a listed entity, must comply with the Corporations
Act 2001 (Cth), Australian Securities Exchange Listing
Rules (ASX LR) and other Australian and international
laws.

Paladin reviews and amends its corporate governance
policies as appropriate to reflect the growth of the
Company, current legislation and best practice.
Paladin’s website www.paladinenergy.com.au includes
copies or summaries of key corporate governance
policy documents. The website also contains copies of
all Board and Committee Charters.

Paladin’s Corporate Governance Statement, dated
30 June 2022 and approved by the Board on
25 August 2022, outlines the key governance
principles and practices of the Company which,
taken as a whole, sets out the Company’s governance
framework. The Board believes that the governance
policies and practices adopted by the Company during
the reporting period ended 30 June 2022 follow the
recommendations contained in the fourth edition of
the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations
published in February 2019 (ASX Principles and
Recommendations). Paladin’s Corporate Governance
Statement can be found in the Corporate Governance
section of its website at www.paladinenergy.com.au,
together with the ASX Appendix 4G, a checklist cross-
referencing the ASX Principles and Recommendations
to disclosures in this statement and the current
Annual Financial Report. The Corporate Governance
Statement, together with the Appendix 4G, has been
lodged with the ASX.

2 6

2 7

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022Directors’ Report

The Directors of Paladin Energy Ltd present their report together with the financial report of the Group consisting
of Paladin Energy Ltd (Company) and the entities (Group) it controlled at the end of, or during, the year ended 30
June 2022 and the auditor’s report. There were no changes to the Board of Directors during the financial year.

DIRECTORS

The following persons were Directors of Paladin Energy Ltd and were in office for the financial year:

Mr Cliff Lawrenson BCom (Hons)
(Non-Executive Chairman)

Mr Peter Watson BEng (Hons), FIEAust, GAICD, RPEQ
(Non-Executive Director)

Mr Cliff Lawrenson is an experienced non-executive
director having served on or chaired public and
private companies for over 15 years after a successful
career in executive leadership, including in investment
banking. Mr Lawrenson holds postgraduate
qualifications in commerce and finance, and has
worked extensively in the resources and energy
sectors across the world. He has a successful track
record of leading strategic direction in companies and
executing complex corporate transactions.

Current Directorships: Non-Executive Chair of Caspin
Ltd (ASX: CPN) and Australian Vanadium Limited (ASX:
AVL). Non-Executive Chair of privately owned Pacific
Energy Limited and Onsite Rental Group.

Mr Lawrenson resigned from the Board of Canyon
Resources (ASX: CAY) effective 8 August 2022. Other
former listed company Directorships (last three years):
Atlas Iron Limited.

Mr Peter Watson is a chemical engineer with more than
35 years’ experience in the global resources sector
across senior technical, project, and management
roles as well as corporate experience in running ASX
listed companies. His experience includes project
development, project delivery, asset optimisation
and mining facilities operations across multiple
commodities and global jurisdictions, including Africa.
Mr Watson has held technical and senior executive
roles with a number of companies, culminating in
his appointment as the Managing Director and CEO
of Sedgman Limited. Mr Watson has also held a
number of senior and directorship roles at Strandline
Resources Ltd, Sedgman Limited, New Century
Resources, Resource Generation and EvacGroup
(private), bringing significant board level experience
at both the public and wholly owned company level,
particularly on matters covering project development
and delivery, operations re-start, safety, governance,
financial reporting, risk management, strategy and
leadership.

Special Responsibilities:

• Chairman of Project Steering Committee

• Member of Audit & Risk Committee

• Member of Remuneration & Nomination Committee

Current listed company Directorships: Non-Executive
Director at Strandline Resources (ASX: STA) and a
Non-Executive Director at New Century Resources Ltd
(ASX: NCZ)

Former listed company Directorships (last three years):
Resource Generation Ltd and Evacuation Services
Australia Pty Limited.

Mr Peter Main BBus
(Non-Executive Director)

Mr Peter Main is a mining and finance professional
with extensive experience spanning more than 35
years. During that time, Mr Main has developed an
extensive working knowledge in financial markets
centred around the mining sector, developing a
wealth of industry experience. During his career Mr
Main spent 13 years in a variety of roles in the mining
industry through to CEO in the later years of a TSX-V
listed mining company. He spent more than 20 years in
mining finance, more recently advising and managing
the development of gold enterprises in the Northern
Territory and Queensland. Mr Main primarily worked
for investment banks, including 11 years managing the
Royal Bank of Canada's (RBC) Australian equity sales
and trading business and co-managing RBC's regional
business, and six years at Hartley Poynton as a mining
analyst. Before that he spent nine years in full time
service in the Australian Army.

Special Responsibilities:

Ms Joanne Palmer RCA, FCA (ICAEW), FCA (ICAANZ),
GAICD, BSc (Hons Mathematics & Statistics)
(Non-Executive Director)

Ms Joanne Palmer is a Registered Company Auditor
and a Fellow of Chartered Accountants in Australia
and in England and Wales. Ms Palmer is currently an
Executive Director of Pitcher Partners in Perth. Ms
Palmer brings over 25 years of industry experience in
providing audit and assurance services on company
listings, mergers, acquisitions and takeovers and
significant experience in auditing international mining
companies. Ms Palmer is a council member of the
Association of Mining & Exploration Companies
(AMEC).

Ms Palmer has had an extensive financial services
career including leading Ernst and Young’s Financial
Accounting Advisory Services team in Perth, working
predominantly in the mining sector assisting both
multinational companies, mid-caps and junior explorers
with technical accounting, regulatory advice and
finance function support services.

• Member of Audit & Risk Committee

Special Responsibilities:

• Chairman of Remuneration & Nomination Committee

• Chair of Audit & Risk Committee

Current listed company Directorships: Non-Executive
Chairman of Carbine Resources (ASX: CRB).

• Member of Remuneration & Nomination Committee

Current listed company Directorships: Non-Executive
Director of Sierra Rutile Holdings Limited.

Mr Ian Purdy BCom, FCA, FAICD
(Chief Executive Officer)

Mr Purdy is a highly respected executive with more
than three decades’ experience within Australian and
international natural resources companies. In his time
as a CEO and CFO of listed and private companies,
Mr Purdy has delivered significant shareholder
value through managing and optimising operations,
delivering large projects and executing on business
improvements and asset sales.

Mr Purdy was previously the CFO of Quadrant Energy,
Managing Director and CEO of Mirabela Nickel Limited,
Managing Director of Norilsk Nickel Australia, Director
of Finance and Strategy of LionOre Australia, and has
held senior finance and commercial roles at North
Limited and WMC Limited.

Ms Melissa Holzberger LLM Resources Law
(Distinction) (Scotland), Dip. International Nuclear
Law (Hons) (France), LLB (Adel), BA (Adel), GDLP,
FGIA, GAICD
(Non-Executive Director)

Ms Melissa Holzberger is a mining lawyer with over
20 years’ of experience in the international energy
and resources sectors, including the uranium industry.
She is an experienced independent company director
having served on ASX-listed, public, government and
not-for-profit boards spanning a wide range of highly
regulated sectors. She brings specialist uranium
and nuclear law, risk, compliance, corporate ethics
and corporate governance expertise, together with
valuable experience in uranium mining operations
and projects, international uranium trade, logistics,
product stewardship and sustainability. Ms Holzberger
is a member of the Federal Government’s Australian
Radiation Protection and Nuclear Safety Agency’s
Radiation Health and Safety Advisory Council.

Special Responsibilities:

• Member of Audit & Risk Committee

Current listed company Directorships: Non-Executive
Director of Andromeda Metals Ltd (ASX: ADN).

Former listed company Directorships (last three years):
Silex Systems Limited.

2 8

2 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022COMPANY SECRETARY

Mr Jeremy Ryan LPAB GDLP
(appointed 27 August 2021)

Mr Nathan Bartrop BCom, LLB, FGIA, FCG
(resigned 27 August 2021)

Mr Ryan has extensive experience in corporate
governance and was previously Company Secretary
/ Manager Legal for ASX listed gold miner Saracen
Mineral Holdings Limited.

Mr Bartrop is a corporate governance professional
(Chartered Secretary) with over 10 years’ experience in
ASX Listing Rules compliance, corporate advisory and
corporate governance.

Mr Ryan was admitted to the Supreme Court of New
South Wales in 1999 and to the Supreme Court of
Western Australia in 2001. Prior to his in-house role
with Saracen, he advised government departments
and worked in the finance and projects team of
a large international law firm. During his time in
private practice Mr Ryan advised companies in the
resources sector including on project development and
operation. In addition to being appointed Company
Secretary, Mr Ryan has also been engaged as Senior
Legal Counsel for Paladin.

BOARD AND COMMITTEE MEETINGS

Mr Bartrop has assisted numerous listed and dual
listed entities across a wide range of industries as
Company Secretary. During his career Mr Bartrop has
also worked as an ASX listings compliance adviser
at ASX in Perth and Sydney, where he was actively
involved in the new listing of companies on the ASX
and advising listed entities on their compliance with
ASX Listing Rules. He is a Fellow and WA State Council
member of the Governance Institute of Australia.

The number of Directors’ meetings and meetings of committees held during the financial year, and the number of
meetings attended by each Director in the period they held office were:

Board of Directors

Audit and Risk
Committee

Remuneration and
Nomination Committee

Number
attended

Number
eligible to
attend

Number
attended

Number
eligible to
attend

Number
attended

Number
eligible to
attend

Name

Mr Cliff Lawrenson

Mr Peter Watson

Mr Peter Main

Ms Melissa Holzberger

Ms Joanne Palmer

Post FY2022 Paladin implemented a Technical and Sustainability Committee and has made some adjustments
to the purpose and membership of the Audit and Risk and Remuneration and Nomination Committees. These
changes will be reported on in the FY2023 Annual Report.

PRINCIPAL ACTIVITY

The principal activity of the Group was the development and operation of the Langer Heinrich Mine in Namibia,
together with exploration and evaluation activities in Australia and Canada.

REVIEW AND RESULTS OF
OPERATIONS

SIGNIFICANT EVENTS AFTER THE
BAL ANCE DATE

A detailed operational and financial review of the
Group is set out on pages 10 to 12 of this report under
the section entitled Operating and Financial Review.

The Group’s loss after tax from continuing operations
for the year is US$43,939,000 (2021: loss after tax
US$58,258,000) representing a decrease of 25% from
the previous year.

DIVIDENDS

No dividend has been paid during the financial year
and no dividend is recommended for the current year.

SIGNIFICANT CHANGES IN THE
STATE OF AFFAIRS

Significant changes in the state of affairs of the Group
during the financial year were as follows:

Capital Raising

In March 2022, Paladin successfully completed an
equity raise by way of a fully underwritten institutional
placement and a Share Purchase Plan (SPP), to raise
A$215M (before costs). The fully underwritten A$200M
equity raise comprised an institutional placement of
277.8M new fully paid ordinary shares in Paladin and
the SPP raised A$15M through the issue of 20.8M new
fully paid ordinary shares in Paladin.

All new shares were issued at a price of A$0.72 per
new share under the equity raise.

Included in S&P/ASX 200 Index

Paladin was included in the S&P/ASX 200 Index
effective prior to the open of trading on 20 December
2021.

Sustainability Report

Paladin’s 2021 Sustainability Report was published
on 13 October 2021, confirming the Company’s
commitment to delivering value through sustainable
development.

Other than disclosed below, since the end of the
financial year, the Directors are not aware of any other
matter or circumstance not otherwise dealt with in
this report, that has significantly or may significantly
affect the operations of the Group, the results of
those operations or the state of affairs of the Group
in subsequent periods with the exception of the
following, the financial effects of which have not been
provided for in the 30 June 2022 Financial Report:

• On 19 July 2022 Paladin announced the decision to
return the Langer Heinrich Mine, located in Namibia,
to production in the first quarter of CY2024. The
decision to restart production at the Langer Heinrich
Mine is supported by strong uranium market
fundamentals and continued progress on uranium
marketing activities, including the execution of
a binding Offtake Agreement for the previously
announced Tender Award

• Total restart capital expenditure has increased
to US$118M on a 100% project basis, (previous
guidance of US$87M), primarily driven by
recent inflationary pressures across the project
supply chain, brought forward power and water
infrastructure works and increased owners team
costs. Paladin has committed to provide 100%
project funding via priority loans to be repaid in
priority to all outstanding shareholder loans

• With US$177.1M in unrestricted cash as at 30 June

2022, Paladin is well positioned to deliver first
production from the Langer Heinrich Mine, pursue
further uranium marketing activities and advance
the global exploration portfolio.

LIKELY DEVELOPMENTS

Likely developments in the operations of the Group
are set out under the section entitled Operating and
Financial Review.

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022ENVIRONMENTAL REGUL ATIONS

DIRECTORS’ INDEMNITIES

TOTAL SHARE APPRECIATION RIGHTS

The Group is subject to environmental regulation in
respect to its exploration, evaluation, development
and operational activities for uranium projects under
the laws of the countries in which its activities
are conducted. The Group currently has a mining
and processing operation in Namibia (transitioning
from care and maintenance), as well as exploration
projects in Australia, and Canada. The Group monitors
compliance with all applicable environmental laws
and regulations in the countries in which it conducts
business.

Specific environmental regulations, approvals and
licences for the exploration, development and
operation are required to conduct the activities at each
site. In addition, many other international and industry
standards are also applied to the Group’s activities,
including those specified for the global uranium
industry. These environmental laws, regulations and
standards relate to environmental factors such as
radiation, water, flora, fauna, air quality, noise, waste
management and pollution control.

The Directors are not aware of any environmental
matters which would have a significant adverse effect
on the Group.

During the year Paladin has incurred premiums to insure
the Directors and/or Officers for liabilities that may be
incurred in defending civil or criminal proceedings that
may be brought against the officers in their capacity as
officers of Paladin and or its controlled entities. Under
the terms and conditions of the insurance contract, the
nature of liabilities insured against and the premium
paid cannot be disclosed.

INDEMNIFICATION OF AUDITORS

To the extent permitted by law, Paladin has agreed to
indemnify its auditors, PricewaterhouseCoopers, as
part of the terms of its audit engagement agreement
against claims by third parties arising from the audit
(for an unspecified amount). The Directors of Paladin
Energy Ltd have not provided PricewaterhouseCoopers
with any indemnities. No payment has been made to
indemnify PricewaterhouseCoopers during or since the
financial year.

ROUNDING

The amounts contained in this report, the Financial
Report and the Operating and Financial Review have
been rounded to the nearest US$1,000 (where rounding
is applicable) under the option available to Paladin
under ASIC Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191. Paladin is an
entity to which the Instrument applies.

TOTAL PERFORMANCE RIGHTS

Issued unlisted employee Performance Rights (PRs) outstanding to employees of the Company are as follows:

Date granted

7 September 20211

3 November 20212

Total

Exercisable date

Fair value

Exercise price

Number

27 September 2022

27 September 2023

30 June 2024

A$0.82

A$0.705

A$0.766

A$0.00

1,220,000

2,220,000

2,830,319

9,100,639

1These PRs have been issued for nil cash consideration and no consideration is payable by the holder upon the vesting of a PR.

2These PRs will vest subject to the Total Shareholder return (TSR) of the Company over the three-year performance period commencing on 1 July 2021,
relative to the TSR performance of each constituent of respective peer groups. In benchmarking the TSR performance a weighting of 50% will apply to
each of the peer groups.

The outstanding balance of Share Appreciation Rights at the date of this report is as follows:

Date granted

Exercisable date

Expiry date

Fair value

20 October 2015

1 November 2017

1 November 2022

20 October 2015

1 November 2018

1 November 2023

27 September 2016

1 November 2017

1 November 2022

27 September 2016

1 November 2018

1 November 2023

27 September 2016

1 November 2019

1 November 2024

16 April 2018

1 July 2019

16 April 2018

16 April 2023

16 April 2019

16 April 2024

16 April 2020

16 April 2025

1 July 2020

1 July 2025

1 July 2021

1 July 2026

1 July 2022

1 July 2027

1 October 2019

1 October 2020

1 October 2025

1 October 2019

1 October 2021

1 October 2026

1 October 2019

1 October 2022

1 October 2027

27 October 2020

9 November 2022

9 November 2027

14 December 2020

21 December 2021 21 December 2026

Total

A$0.13

A$0.08

A$0.17

A$0.05

A$0.07

A$0.05

A$0.06

A$0.07

A$0.03

A$0.04

A$0.05

A$0.13

A$0.21

Exercise
price

A$0.20

A$0.15

A$0.1226

Number

50,000

38,000

105,000

52,500

700,000

A$0.1226

1,100,000

A$0.12

A$0.00

105,000

82,500

238,750

600,000

100,000

4,050,250

During the year 1,608,250 Share Appreciation Rights were converted to 1,411,493 shares.

AUDITOR

PricewaterhouseCoopers were appointed auditors for
Paladin by shareholders at the 2016 Annual General
Meeting on 18 November 2016.

NON-AUDIT SERVICES

During the year, non-audit and assurance
services were provided by Paladin’s auditor,
PricewaterhouseCoopers. The Directors are satisfied
that the provision of non-audit and assurance
services is compatible with the general standard
of independence for auditors imposed by the
Corporations Act. The nature and scope of each type
of non-audit and assurance service provided means
that auditor independence was not compromised.

Details of amounts paid or payable to
PricewaterhouseCoopers can be found in Note [24].

LEAD AUDITOR’S INDEPENDENCE
DECL ARATION

The Lead Auditor’s Independence Declaration is set
out on page 46 of the Financial Report.

Dated this 25th day of August 2022.

Signed in accordance with a resolution of the Directors

Cliff Lawrenson
Chairman
Perth, Western Australia

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Remuneration
Report

Message from the Chairman of the Governance,
Remuneration and Nomination Committee

Dear Shareholders,

On behalf of the Board, I am pleased to present the
2022 Remuneration Report.

Paladin has had an outstanding year with the Key
Management Personnel leading the Company
through a transformational year. The team continued
to demonstrate our commitment to sustainable
development principles with above target performance
across our sustainability measures.

During the year we successfully completed a fully
underwritten institutional placement and Share
Purchase Plan of approximately 298.6 million new
shares raising A$215M (before costs) to fund the
restart of the Langer Heinrich Mine.

The Company has recently announced the
commencement of the Langer Heinrich Mine Restart
Project to return the mine back into commercial
production in 2024 and has secured a Uranium Offtake
Agreement to supply uranium concentrates to a major
North American power utility.

These achievements reflect the agility and
commitment of the Company’s staff, led by the Chief
Executive Officer, Ian Purdy, and the Executive, in
returning Paladin to its rightful position as a leading
global uranium production company.

Independent Remuneration Review

In August 2021, BDO Remuneration completed an
independent Executive and Non-Executive Director
Remuneration Review and made recommendations
which were adopted by the Board. The review
included market benchmarking of fixed remuneration
for executive and non-executive directors, as well
recommendations regarding the Executive incentive
scheme and allocations.

In line with the BDO Remuneration recommendation,
the Company provided the Executive with a long term,
equity incentive plan, which aligns the Executive with
creating long term value for the shareholders. No
short term or cash incentive is currently offered to any
executives or employees. The Board will reconsider
the appropriateness of a short term, cash scheme
when the Company returns to commercial production.

I am satisfied that the remuneration framework for
Paladin is consistent with market expectations and
practices, and most importantly aligns the Executive
with the long term success of the Company and its
shareholders.

Finally, thank you for your continued support of
Paladin. We look forward to our ongoing engagement
with you and sharing in the Company's future success.

Peter Main

Chairman, Governance, Remuneration and
Nomination Committee

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REMUNERATION REPORT (AUDITED)

REMUNERATION REPORT (AUDITED)

The Directors present the FY2022 Remuneration Report, outlining key aspects of our remuneration policy and
framework, and remuneration awarded this year.

REMUNERATION FRAMEWORK

Outline of Remuneration Framework

The report is structured as follows:

• Introduction and FY2022 Key Management Personnel

• Remuneration framework

• Linking long term performance and shareholder value

• Reconciliation of performance based remuneration

• Remuneration expenses for Executive KMP

• Non-Executive Director's remuneration

• Additional statutory information

INTRODUCTION AND FY2022 KEY MANAGEMENT PERSONNEL

The key management personnel (KMP) include the directors of Paladin Energy Ltd and the Executive KMP
(Chief Executive Officer (CEO), the Chief Financial Officer (CFO)) and those Executives who have authority
and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly,
including any Director, whether executive or otherwise, of the parent company. The KMP for the 2022 financial
year are as follows:

Non-Executive Directors

• Mr Cliff Lawrenson, Non-Executive Chairman

• Mr Peter Watson, Non-Executive Director

• Mr Peter Main, Non-Executive Director

• Ms Melissa Holzberger, Non-Executive Director

• Ms Joanne Palmer, Non-Executive Director

These directors were members of the Board of Paladin Energy Ltd throughout the whole of the 2022 financial
year.

Current Executive KMP

• Mr Ian Purdy, Chief Executive Officer

• Ms Anna Sudlow, Chief Financial Officer

• Mr Jonathon Clements, Senior Vice President – Projects & Development2

• Mr Jess Oram, Senior Vice President – Exploration1

• Mr Alex Rybak, Senior Vice President – Business Development & Marketing1

These Executive KMP held their positions throughout the whole of the 2022 financial year except as noted.

1Appointed 19 July 2021

2Resigned 31 July 2022

For the purposes of this report, the term Executives encompasses the CEO, CFO and the other Executive KMP.

There have been no other changes to Executive KMP after the reporting date.

The Governance, Remuneration and Nomination Committee (the Committee) is made up of independent
non-executive directors and is charged with assisting the Board by reviewing and making appropriate
recommendations on remuneration packages for Executives. In addition, it makes recommendations on long term
incentive plans and associated performance hurdles together with the quantum of grants awarded, considering
both the individual’s and Paladin’s performance.

The Committee reviews the total number and allocation of any long term incentive grants and recommends the
same for approval by the Board. The remuneration for the Executives and non-executive directors is reviewed by
the Committee and determined by the Board.

In September 2021, BDO Remuneration completed an independent Executive and Non-Executive Director
Remuneration Review and made recommendations to the Committee Chairman, which were subsequently
adopted by the Paladin Board of Directors. The review included market benchmarking of fixed remuneration for
Executives and non-executive directors, as well as recommendations regarding an Executive Long Term Incentive
(LTI) plan and the associated award of Performance Rights (PRs).

In line with the BDO Remuneration recommendations, the Committee endorsed an LTI plan for Executives,
that aligns performance with creating long term value for the shareholders. The structure of this framework is
provided in Figure 1 below.

Figure 1: Remuneration Framework

Element

Purpose

Fixed Remuneration
(FR)

Provide market
competitive base salary
including statutory
superannuation and
non-monetary benefits.

Long Term Incentive
(LTI). Variable
Performance Linked
Remuneration (“at
risk” remuneration)

Performance
Rights aligned to the
achievement of long
term shareholder value

Performance
Metrics

Base Salary – Nil

Potential Value

Positioned at
median market rate

Statutory
Superannuation – Nil

Statutory % of base
salary

Award determined
based on individual
position. Vesting
dependent on
peer group
hurdles creation of
shareholder value
over three-year
period.

CEO Annual
Allocation: 140%
of FR

Executive KMP
Annual Allocation:
110% of FR

Changes for
FY2022

Independently
reviewed in line
with market
positioning
and Paladin
performance

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REMUNERATION REPORT (AUDITED)

The Total Incentive Opportunity (TIO) represents the sum of the fixed and LTI opportunity. The Total Incentive
Opportunity Target Remuneration is shown in Figure 2.

Figure 2: TIO Target Remuneration Mix for FY2022

O
E
C

s
e
v
i
t
u
c
e
x
E

42%

58%

48%

52%

LINKING LONG TERM PERFORMANCE
AND SHAREHOLDER VALUE

Share Rights Plan Overview

In 2009, Paladin implemented an Employee
Performance Share Rights Plan (the 2009 Employee
Share Rights Plan) together with a Contractor
Performance Share Rights Plan (the Contractor Rights
Plan). These plans are referred to jointly as the Rights
Plans and were reaffirmed by shareholders at the 2018
Annual General Meeting. The Rights Plans terms were
amended and approved by shareholders at the 2020
Annual General Meeting (2020 Employee Share Rights
Plan).

The Rights Plan are the mechanism under which
Executives have been awarded:

• Long Term Incentive Plan Performance Rights,

(current incentive grant)

• Performance Rights on commencement of

employment

Performance Criteria

At the beginning of each financial year a tranche/s of
PRs will be granted to the Executive, and these will
be assessed against the objectives relating to each
tranche at the end of a three-year period. Once the
PR has vested, the incumbent will have two years to
exercise the PR at which point it will expire.

To the extent that the applicable vesting conditions
are satisfied at the end of the three-year performance
period, LTI awards are delivered by vesting of all or a
portion of PRs in return for allocation to participants of
fully paid ordinary shares.

The Company’s performance is currently assessed
using a market performance measure, Relative
Total Shareholder Return (TSR). This requires that
the Company’s TSR is compared to a peer group
of similar companies at the end of a three-year
performance period. Two peer groups for performance
benchmarking purposes have been identified below in
Figures 4 and 5:

• Share Appreciation Rights, (old incentive grant – no

longer in use).

Figure 4: Uranium Peer Group (50% of award)

20%

40%

60%

80%

100%

Long Term Incentive Plan Overview

Fixed Remuneration

LTI

Fixed Remuneration

Executives may receive their fixed remuneration as cash, or cash with non-monetary benefits. This fixed
remuneration is reviewed annually with consideration given to both Paladin’s and the individual’s performance. It
is determined from the present value or market rate of the role and is set with reference to the market median,
cognisant of each Executive’s accountability, location, skill set and experience.

Remuneration and other terms of employment for the Executives are formalised in contracts for services.

All contracts with Executives may be terminated by either party providing between three and six months written
notice or providing payments in lieu of the notice period (based on a fixed component of remuneration).

Figure 3: Summary of Contractual Arrangements with Executives

Component

CEO Description

CFO Description

Other Executive Description

Fixed Remuneration
(exclusive of
superannuation)

A$560,000

A$350,000

Range between
A$300,000 and A$340,000

Contract duration

No fixed term

Notice by the
individual/Company

6 months

3 months

Termination Benefit

Not specified

No fixed term

3 months

Not specified

Termination of
employment (without
cause)

Termination of
employment (with
cause) or by the
individual

Long Term Incentive: On termination notice by Paladin, any rights that have vested, or
that will vest during the notice period, will be released. Rights that have not yet vested
will be forfeited.

BDO Remuneration recommended that Executives
participate, at the Board’s discretion, in the LTI plan
comprising annual grants of Performance Rights which
are subject to vesting hurdles.

The Board is cognisant of general shareholder concern
that long term equity-based remuneration be linked
to Paladin’s performance and growth in shareholder
value. Performance Rights issued to Executives under
the LTI plan are usually measured over a three-year
performance period. These will therefore only vest at
the end of a three-year period subject to achieving
performance hurdles. This promotes a focus on long
term performance as the value of the PRs is linked
to the ongoing performance of Paladin. This period
represents an appropriate balance between providing
a genuine and foreseeable incentive to Executives
and fostering a long term alignment to shareholder
interests.

Company

Cameco Corporation

Code

TSX:CCO

KAZATOMPROM GDR REGS 1/1

DB:0ZQ

Nextgen Energy Limited

Denison Mines

Energy Fuels Inc.

TSX:NXE

TSX:DML

TSX:EFR

Bannerman Energy Limited

ASX: BMN

Boss Energy Limited

Fission Uranium Corp.

ASX: BOE

TSX: FCU

Uranium Energy Corp.

NYSE:UEC

Global Atomic Corporation

TSX:GLO

Ur Energy Inc

Encore Energy Corp.

Deep Yellow Limited

Lotus Resources Limited

NYSE:URG

TSXV:EU

ASX: DYL

ASX: LOT

Vimy Resources Limited

ASX: VMY

3 8

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REMUNERATION REPORT (AUDITED)

Figure 5: General Mining Peer Group (50% of award) – High Growth
Mining Peers

Figure 6: Relative TSR Performance

Company

Orocobre Limited

Iluka Resources

Whitehaven Coal

Liontown Resources

Coronado Global Res

Nickel Mines Limited

Champion Iron Ltd

Chalice Mining Ltd

New Hope Corporation

Aurelia Metals Ltd

Sandfire Resources

Perseus Mining Ltd

Regis Resources

Australian Strategic Materials

De Grey Mining

Silver Lake Resource

Gold Road Res Ltd

Ramelius Resources

Ioneer Ltd

St Barbara Limited

Western Areas Ltd

Capricorn Metals

Bellevue Gold Ltd

Westgold Resources

Red 5 Limited

Mount Gibson Iron

Resolute Mining

SSR Mining Inc

Code

ORE

ILU

WHC

LTR

CRN

NIC

CIA

CHN

NHC

AMI

SFR

PRU

RRL

ASM

DEG

SLR

GOR

RMS

INR

SBM

WSA

CMM

BGL

WGX

RED

MGX

RSG

SSR

Relative TSR
Performance

% Zero Exercise Price
Option to Vest

Peer TSR comparison
<50th percentile

50th percentile
< peer TSR comparison
< 75th percentile

Pro-rata between 50%
and 100%

Peer TSR comparison
> 75th percentile

100%

Assessing LTI Performance

The Committee is responsible for assessing
performance against criteria and recommending to the
Board the LTI to be paid. To assist in this assessment
a third-party accountant/audit service provider will
be engaged to report on the market performance
condition (i.e. Relative TSR ranking within the
comparator group as defined in each of the LTI plans
at each grant date). The FY2022 LTI award will be
assessed at the end of financial year 2024.

Cancellation of LTI Remuneration

If a change of control event occurs the Board may
determine in its absolute discretion the treatment
of unvested PRs and the timing of such treatment,
which may include determining that some or all of
the unvested PRs vest, lapse or become subject to
substitute or varied conditions. Any PRs not vested
under the Change of Control rules lapse immediately.

The Board also has discretion to reduce or
clawback all vested and unvested awards in certain
circumstances to ensure Executives do not obtain an
inappropriate benefit. The circumstances in which the
Board may exercise this discretion are extensive and
include situations where an Executive has engaged
in misconduct, where there has been a material
misstatement of the Company’s results in vesting,
behaviours of Executives that bring the Company
into disrepute or any other reasonable factor as
determined by the Board.

The vesting of the LTIs will be dependent on the
outcome of Paladin’s relative TSR performance. There
is a minimum performance level that must be achieved
as represented in the following Figure 6.

If an Executive resigns during this period, they will
ordinarily forfeit their PRs at the Board’s discretion.

Details of PRs issued to Executives as part of the
FY2022 LTI are provided below in Figure 7.

Performance Rights Terms and Conditions - LTI

The terms, conditions and valuation of each grant of PRs affecting remuneration in the current or a future
reporting period are as follows:

Figure 7: Performance Rights issued to Executives as the FY2022 LTI

Grant date

3 November
20211

3 November
20212

Vesting and
exercise date

Expiry date

Exercise
price

Value per PR
at grant date

Performance
achieved

% Vested

30 June 2024

1 July 2026

A$0.00

A$0.71

30 June 2024

1 July 2026

A$0.00

A$0.77

To be
determined

1The number of PRs that vest is based on the Total Shareholder Return (TSR) of Paladin over the performance period of three years, relative to the TSR
performance of a nominated peer group of 15 uranium focused companies.

2The number of PRs that vest is based on the TSR of Paladin relative to the performance of a nominated peer group of 30 Australian Stock Exchange
listed companies.

Performance Rights on Commencement of Employment

Performance Rights were issued to Executives appointed in FY2022 at the commencement of their employment.
These PRs were provided as a mechanism to attract and retain Executives in the current market. These PRs
have a two-year vesting period dependent on continued employment with the Company. The PRs issued on
commencement are provided below in Figure 8.

Figure 8: Performance Rights issued to Executives on commencement of employment

Grant date

Vesting and
exercise date

Expiry date

Exercise
price

Value per PR
at grant date

Performance
achieved

% Vested

7 September
2021

27 September
2023

27 September
2026

A$0.00

A$0.82

Retention
based

Share Appreciation Rights Terms and Conditions

Paladin has historically granted Share Appreciation Rights (SARs) to Executives under the Rights Plan.

The number of SARs over ordinary shares in the Company provided as remuneration to Executives is shown
in Figure 9 below. The SARs carry no dividend or voting rights. Figure 9 contains the conditions that must be
satisfied for the SARs to vest.

When exercisable, each SAR is convertible into one ordinary share of Paladin Energy Ltd. The exercise price
of SARs is based on the weighted average price at which the Company’s shares are traded on the Australian
Securities Exchange during the five business days up to and including the date of grant.

The terms, conditions and valuation of each grant of SARs affecting remuneration in the current or a future
reporting period are as follows:

Figure 9: Share Appreciation Rights vesting during the year and in future periods

Grant date

Vesting and
exercise
date

Expiry date

Number

Exercise
price

Value per
SAR at
grant date

Performance
achieved

% Vested

1 July 2019

1 July 2021

1 July 2026

700,000

A$0.1226

A$0.06

1 July 2019

1 July 2022

1 July 2027

1,100,000

A$0.1226

A$0.07

Retention
based

100%

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REMUNERATION REPORT (AUDITED)

RECONCILIATION OF PERFORMANCE BASED REMUNERATION

REMUNERATION EXPENSES FOR EXECUTIVE KMP

The number of PRs over ordinary shares in the Company provided as remuneration to Executives is shown in
Figure 10 below. The PRs carry no dividend or voting rights. When exercisable, each PR is convertible into one
ordinary share of Paladin Energy Ltd.

Figure 10 shows for each Executive the value of PRs and SARs that were granted, exercised and forfeited during
FY2022. The number of PRs and SARs vested/forfeited for each grant during FY2022 are disclosed in Figures 11
and 12 below.

Figure 10: Performance based remuneration granted and forfeited during the year

2022

Ian Purdy

Anna Sudlow

Jonathon
Clements

Jess Oram

Alex Rybak

Performance Rights

Share Appreciation Rights

Value
granted
US$

220,619

130,665

107,995

216,451

Value
exercised
US$

Value
forfeited
US$

Value
granted
US$

Value
exercised
US$

Value
forfeited
US$

The table below shows a reconciliation of PRs held by each Executive from the beginning to the end of FY2022.
During FY2022, 42,750,000 shares that had vested in the prior year were released from voluntary escrow. There
were no unvested PRs as at 1 July 2021.

Figure 11: Reconciliation of Performance Rights

Balance at
the start of
the year

Unvested

Granted as
compensation

Vested
Number
%

Exercised

Forfeited
Number
%

Balance at
the end of
the year

1,630,895

820,293

798,334

710,501

500,000

Vested and
exercisable

Unvested

1,630,895

820,293

798,334

710,501

500,000

Name

Ian Purdy1

Anna Sudlow1

Jonathon
Clements1

Jess Oram1

Alex Rybak1

Jess Oram2

Alex Rybak2

1Grant date 3 November 2021 as part of the FY2022 LTI

2Grant date 7 September 2021 as commencement PRs

The table below shows a reconciliation of SARs held by each Executive from the beginning to the end of FY2022.
At the commencement of FY2022, 700,000 SARs had vested. On 1 July 2021, a further 700,000 SARS vested.

Figure 12: Reconciliation of SARs

Name

Balance at
the start of
the year

Unvested

Granted as
compensation

Vested
Number
%

Exercised

Forfeited
Number
%

Balance at
the end of
the year

Vested and
exercisable

Unvested

Anna Sudlow1

1,800,000

700,000

1,400,000

1,100,000

1Granted 1 July 2019. Fair value per right at grant date was A$0.06 and A$0.07 as detailed in Figure 9

The following table shows details of the remuneration expense recognised for the Group’s Executive KMP for the
current and previous financial year measured in accordance with the requirements of the accounting standards.

Figure 13: Compensation of Executive KMP

Name

Year

Salary &
Fees1
US$

Ian Purdy

2022

406,000

2021

373,034

Anna Sudlow

2022

253,750

Jonathon
Clements3

Jess Oram4

Alex Rybak4

2021

222,557

2022

246,500

2021

2022

161,247

207,614

Michael Drake5

2021

29,054

Fixed Remuneration

Variable
Remuneration

Total

Total Performance
Related

Other US$

Superannuation
US$

PRs and SARs
US$

US$

5,1512

1,706

17,087

16,185

17,087

16,185

220,619

643,706

879,121

220,619

34.3

651,738

1,040,957

1,395,257

651,738

130,665

406,653

555,998

130,665

405,159

645,607

865,345

405,159

62.6

32.1

62.8

17,087

107,995

371,582

508,243

107,995

29.1

12,139

20,001

20,761

4,046

535,677

709,063

950,399

535,677

216,451

444,066

604,523

216,451

444,826

605,571

216,451

33,100

44,366

75.5

48.7

Total
Executive KMP
remuneration
expensed

2022

1,321,478

5,151

92,023

892,181

2,310,833

3,153,456

892,181

2021

785,892

1,706

48,555

1,592,574

2,428,727

3,255,367

1,592,574

1Includes 4 weeks annual leave per annum
2Insurance
3Resigned 31 July 2022
4Appointed 19 July 2021
5Resigned 3 July 2020

Notes to the Compensation Tables

Presentation Currency: The compensation table has been presented in US$, Paladin’s functional and presentation
currency. The A$ value has also been shown as this is the most relevant comparator between years, given that
100% of KMP contracts for services were denominated in A$ and this eliminates the effects of fluctuations in the
US$ and A$ exchange rate. Exchange rate used is average for the 2022 financial year US$1 = A$1.379310 (2021
financial year US$1 = A$1.34036).

For accounting purposes, the fair value at grant date is shown above in accordance with AASB 2 Share Based
Payment. The PRs subject to TSR conditions have been independently valued using a hybrid employee share
option pricing model which uses a correlated simulation that simultaneously calculates the returns from the
Company’s and the individual peer group companies’ TSR (for Peer Groups 1 and 2) on a risk-neutral basis as
at the vesting date with regards to the remaining performance measurement period. The PRs subject to non-
market conditions have been valued with reference to the Paladin share price on grant date. The fair value of PRs
granted are set out in Figures 7 and 8. The fair value at the grant date represents the maximum possible total fair
value of the shares. The minimum value of unvested shares is nil.

4 2

4 3

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
REMUNERATION REPORT (AUDITED)

ADDITIONAL STATUTORY INFORMATION (UNAUDITED)

NON-EXECUTIVE DIRECTOR REMUNERATION

Shareholdings

Non-executive directors receive a board fee and fees for chairing or participating on board committees, see
Figure 14 below. The fees are inclusive of superannuation. In addition, Paladin’s Constitution provides for additional
compensation to be paid if any of the Directors are called upon to perform extra services or make any special
exertions on behalf of Paladin or the business of Paladin. Paladin may compensate such Director in accordance
with such services or exertions, and such compensation may be either in addition to or in substitution for the
Directors’ fees referred to in Figure 14 below. Refer Figure 15 below for details of compensation paid to Directors
during FY2022.

Directors are also entitled to be reimbursed for reasonable expenses incurred whilst engaged on Paladin business.
There is no entitlement to compensation on termination of non-executive directorships. Non-executive directors do
not earn retirement benefits (other than the statutory superannuation).

All non-executive directors enter into a service agreement with the Company in the form of a letter of appointment.
The letter refers to the board policies and terms, including remuneration, relevant to the office of a director.

The aggregate annual remuneration permitted to be paid to non-executive directors is A$1,200,000 (US$895,282)
as approved by shareholders at the 2008 Annual General Meeting.

Figure 14: Non-Executive Directors’ Remuneration Arrangements

Remuneration Component

Elements

Details (per annum)

Base Fee

Superannuation

Must be contained within
aggregate limit

Chairman
A$150,000 (US$82,068)

Non-Executive Director
A$100,000 (US$54,225)

Statutory contributions are
included in the fees set out above

Statutory % of fees

Fees paid for the year to 30 June 2022 total US$416,875 (A$575,000). No additional fees were paid during the year
ended 30 June 2022, other than the Directors’ fees disclosed.

Figure 15: Compensation of Non-Executive Directors

Fixed Remuneration

Variable
Remuneration
- LTI

Total

Total Performance
Related

Salary & Fees
US$

Superannuation
US$

Share Rights
US$

US$

Year

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Name

Cliff Lawrenson

Peter Main

Peter Watson1

Melissa Holzberger2

Joanne Palmer2

Total non-
executive director
remuneration

108,750

82,068

72,500

52,225

82,386

47,694

65,909

5,897

65,909

5,897

8,239

4,531

6,591

560

6,591

560

2022

395,454

21,421

108,750

150,000

156,4173

238,485

319,655

156,417

72,500

100,000

104,2783

156,503

209,770

104,278

90,625

125,000

104,2783

156,503

209,770

104,278

72,500

100,000

6,457

8,655

72,500

100,000

6,457

8,655

416,875

575,000

65.6

66.6

The table below reconciles the shareholdings of non-executive directors and Executive KMP for FY2022.

Figure 16: Shareholdings

Name

Non-Executive
Directors

Cliff Lawrenson

Peter Main

Peter Watson

Melissa Holzberger

Joanne Palmer

Executives

Ian Purdy

Anna Sudlow

Jonathon
Clements

Jess Oram

Alex Rybak

Balance at the
start of the
year

Received
during the year
on the exercise
of PRs

Received
during the year
on the exercise
of SARs

Other changes
during the year

Balance at the
end of the year

6,135,136

4,094,594

21,743

21,725

25,675,676

10,000,000

8,000,000

(3,900,000)

2,235,136

4,094,594

(3,094,594)

1,000,000

21,743

21,725

(16,925,676)

8,750,000

(3,350,000)

6,650,000

(5,000,000)

3,000,000

None of the shares above are held nominally by the directors or any of the other KMP.

No other KMP held shares during the years ended 30 June 2022 and 30 June 2021.

All equity transactions with KMP have been entered into under terms and conditions no more favourable than
those the Group would have adopted if dealing at arm’s length.

Loans Given to Key Management Personnel

Paladin does not offer any loan facilities to KMP.

Other Transactions with Key Management Personnel

In FY2022, Peter Watson was requested by the Board to provide additional oversight to the Langer Heinrich Mine
Restart Project and a variation to amend his directors’ fees from A$100,000 to $200,000, on an arms-length and
commercial basis, was approved by the Board effective 1 April 2022. The Board considered that these services
are unique, needed, limited in nature and the Board consider that they are in the best interests of shareholders.

Reliance on External Remuneration Consultants

Paladin engaged remuneration consultants BDO to provide an independent remuneration review.

Voting of Shareholders at Last Year’s Annual General Meeting

Paladin Energy Ltd received more than 95% of “yes” votes on its remuneration report for the 2021 financial year.
The Company did not receive any specific feedback at the AGM on its remuneration practices.

2021

193,781

5,651

364,973

564,405

756,505

364,973

1In FY2022, Peter Watson was requested by the Board to provide additional oversight to the Langer Heinrich Mine Restart Project and a variation to
amend his directors’ fees from A$100,000 to $200,000, on an arms-length and commercial basis, was approved by the Board effective 1 April 2022.
The Board considered that these services are unique, needed, limited in nature and the Board consider that they are in the best interests of shareholders.

2Appointed 17 May 2021

3PRs were issued to non-executive directors in FY2021 to provide an equity based component to their respective remuneration packages. These PR’s
vested during FY2021.

4 4

4 5

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

Auditor’s Independence Declaration

As lead auditor for the audit of Paladin Energy Ltd for the year ended 30 June 2022, I declare that to
the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit, and

(b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Paladin Energy Ltd and the entities it controlled during the period.

Justin Carroll
Partner
PricewaterhouseCoopers

Perth
25 August 2022

Contents of
Financial Report

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

4 6

4 7

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

Financial Report

For the year ended
30 June 2022

CONSOLIDATED INCOME STATEMENT

For the year ended 30 June 2022

Revenue

Cost of sales

Gross profit

Other income

Foreign exchange loss (net)

Administration, marketing and non-production costs

Loss before interest and tax

Finance costs

Net loss before income tax from continuing operations

Income tax expense

Notes

2022

US$’000

2021

US$’000

4,700

(4,693)

999

2,985

(2,973)

2,452

(8,179)

(3,934)

(23,759)

(24,225)

(30,932)

(25,695)

(13,006)

(32,412)

(43,938)

(58,107)

(1)

(151)

Net loss after tax from continuing operations

(43,939)

(58,258)

Attributable to:

Non-controlling interests

Members of the parent

Net loss after tax

Loss per share (US cents)

(17,196)

(14,275)

(26,743)

(43,983)

(43,939)

(58,258)

Loss after tax from operations attributable to ordinary equity
holders of the Company

– continuing operations, basic and diluted

(US cents)

(1.0)

(2.0)

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

4 8

4 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the year ended 30 June 2022

As at 30 June 2022

Net loss after tax

Other comprehensive income

Notes

2022

US$’000

(43,939)

2021

US$’000

(58,258)

Items that may be subsequently reclassified to profit or loss

Foreign currency translation

Income tax on items of other comprehensive income

Items that will not be subsequently reclassified to profit or
loss:

Changes in the fair value of equity investments at fair value
through other comprehensive income

Other comprehensive (loss)/profit for the year, net of tax

(1,254)

—

432

(822)

2,975

—

8,201

11,176

Total comprehensive loss for the year

(44,761)

(47,082)

Total loss attributable to:

Non-controlling interests

Members of the parent

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

(17,196)

(14,275)

(27,565)

(32,807)

(44,761)

(47,082)

5 0

ASSETS

Current assets

Cash and cash equivalents

Restricted cash

Trade and other receivables

Prepayments

Inventories

TOTAL CURRENT ASSETS

Non-current assets

Trade and other receivables

Non-current financial assets

Right-of-use assets

Property, plant and equipment

Mine development

Exploration and evaluation expenditure

Intangible assets

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

LIABILITIES

Current liabilities

Trade and other payables

Lease liabilities

Provisions

TOTAL CURRENT LIABILITIES

Notes

2022

US$’000

2021

US$’000

177,066

30,661

1,000

5,084

1,263

5,100

1,000

1,978

1,259

5,123

189,513

40,021

194

—

918

4,776

12,880

780

166,274

178,089

14,975

101,327

7,793

16,748

99,557

8,312

291,481

321,142

480,994

361,163

2,211

335

2,601

2,262

540

2,851

5 1

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 30 June 2022

For the year ended 30 June 2022

Non-current liabilities

Interest bearing loans and borrowings

Lease liabilities

Provisions

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY

Contributed equity

Reserves

Accumulated losses

Parent interests

Non-controlling interests

TOTAL EQUITY

Notes

2022

US$’000

2021

US$’000

78,558

880

40,543

68,743

788

42,073

119,981

111,604

122,582

114,455

358,412

246,708

2,645,778

2,489,082

(71,917)

(59,354)

(2,160,834)

(2,146,511)

413,027

283,217

(54,615)

(36,509)

358,412

246,708

Contributed
Equity
(Note 7)

Reserves
(Note 7)

Accumulated
Losses

Attributable
to Owners of
the Parent

Non-
Controlling
Interests

Total

US$’000

Balance at 30 June 2020

2,327,789

(70,269)

(2,104,132)

153,388

(60,389)

92,999

Loss for the period

Other comprehensive income

Total comprehensive loss for the year net
of tax

—

(43,983)

(14,275)

(58,258)

11,176

—

11,176

—

11,176

(43,983)

(32,807)

(14,275)

(47,082)

Share-based payment

2,355

(261)

Capital raising (net of costs)

158,938

Earn in of 5% share of Michelin Project

Transactions with owners in their capacity as
owners

—

2,094

158,938

—

2,094

158,938

1,604

(1,604)

—

39,759

Balance at 30 June 2021

2,489,082

(59,354)

(2,146,511)

283,217

(36,509)

246,708

Loss for the period

Other comprehensive income

Total comprehensive loss for the year net
of tax

—

(26,743)

(17,196)

(43,939)

(822)

—

(822)

—

(822)

(26,743)

(27,565)

(17,196)

(44,761)

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Share-based payment

111

1,885

—

1,996

Transfer of gain on disposal of equity
investments at fair value through other
comprehensive income to retained earnings

—

(10,866)

10,866

—

Transfer of reserves on deregistration of
subsidiaries through the income statement

—

(2,760)

Capital raising (net of costs)

156,585

Earn in of 5% share of Michelin Project

Transactions with owners in their capacity as
owners

—

(2,760)

156,585

1,554

(1,554)

—

644

—

1,996

—

(2,760)

156,585

Balance at 30 June 2022

2,645,778

(71,917)

(2,160,834)

413,027

(54,615)

358,412

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

5 2

5 3

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 30 June 2022

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the year ended 30 June 2022

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers1

Payments to suppliers and employees2

Other income3

Interest received

Interest and other costs of finance paid

Tax paid

NET CASH OUTFLOW FROM OPERATING

ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment

Proceeds from sale of property, plant & equipment

Capitalised exploration expenditure

LHM restart study costs

Proceeds from sale of subsidiary

Proceeds from sale of investments4

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares

Equity fundraising costs

Secured Notes interest paid5

Repayment of Secured Notes

Funds received from Shareholder6

NET CASH INFLOW FROM FINANCING ACTIVITIES

Notes

2022

US$’000

2021

US$’000

4,700

(11,718)

158

—

(1)

2,985

(9,787)

1,340

(47)

(151)

(6,794)

(5,565)

NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS

Unrestricted cash and cash equivalents at the beginning of the
financial year

Notes

2022

US$’000

2021

US$’000

162,561

(6,578)

30,661

34,237

Effects of exchange rate changes on cash and cash equivalents

(16,156)

3,002

UNRESTRICTED CASH AND CASH EQUIVALENTS AT THE END
OF THE FINANCIAL YEAR

177,066

30,661

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

1During FY2022 and FY2021 the Company participated in a spot trading opportunity.
2Includes cost of sales relating to the spot trade of US$4,692,500 (FY2021: US$2,973,000).
3During FY2021 the Company reached final settlement for litigation related to previous activities at the Kayelekera Mine in the amount of US$1,316,000 (not related to the sale to
Lotus Resources Ltd).
4During FY2022 the Company sold 90M shares in Lotus Resources Ltd
5The Group’s accounting policy is to treat interest as financing cash flows
6Funds received by way of loan from CNNC Overseas Uranium Holding Limited to Langer Heinrich Uranium Pty Ltd to fund care and maintenance activities.

(180)

—

(1,005)

(2,242)

2,000

13,386

11,959

162,514

(5,929)

—

811

157,396

(38)

(1,081)

(2,142)

1,000

—

(2,211)

166,560

(7,597)

(42,765)

(115,000)

—

1,198

5 4

5 5

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

BASIS OF PREPARATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BASIS OF PREPARATION

Note 1 .

Corporate Information ................................................................................................................................................................................................................................................. 57

NOTE 1 .

CORPORATE INFORMATION

Note 2 .

Structure of the Financial Report ................................................................................................................................................................................................................. 57

Note 3.

Basis of Preparation ....................................................................................................................................................................................................................................................... 57

SEGMENT REPORTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Note 4.

Segment Information .................................................................................................................................................................................................................................................... 60

The Consolidated Financial Report of the Group consisting of Paladin Energy Ltd (Paladin) and the entities it controlled at the end of, or

during the year ended 30 June 2022 was authorised for issue by the Directors on 25 August 2022.

Paladin is a company limited by shares, incorporated and domiciled in Australia whose shares are listed on the ASX in Australia and the

Namibian Stock Exchange in Africa. The Company also trades on the OTCQX market in the United States of America.

The Group’s principal place of business is Level 8, 191 St Georges Terrace, Perth, Western Australia. The nature of the operations and

CAPITAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

principal activities of the Group are described in the Operating and Financial Review (unaudited) on pages 10 to 12.

Note 5a. Cash and Cash Equivalents ................................................................................................................................................................................................................................. 62

NOTE 2 .

STRUCTURE OF THE FINANCIAL REPORT

Note 5b. Restricted Cash .................................................................................................................................................................................................................................................................... 62

The Notes to the Consolidated Financial Statements have been grouped into six key categories, which are summarised as follows:

Note 6.

Interest Bearing Loans and Borrowings ............................................................................................................................................................................................... 62

Note 7 .

Contributed Equity and Reserves ............................................................................................................................................................................................................... 64

Basis of Presentation

This section sets out the Group’s significant accounting policies that relate to the financial statements as a whole. Where an accounting

Note 8.

Financial Risk Management ................................................................................................................................................................................................................................. 66

policy is specific to one note, the policy is described in the note to which it relates. Accounting policies determined non-significant are

PERFORMANCE FOR THE YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

not included in the financial statements.

Note 9.

Revenue .......................................................................................................................................................................................................................................................................................... 72

Segment Reporting

Note 10 .

Income and Expenses .................................................................................................................................................................................................................................................. 73

This section compares performance across operating segments.

Note 11 .

Income and Other Taxes .......................................................................................................................................................................................................................................... 74

Capital Structure

Note 12 .

Earnings Per Share .......................................................................................................................................................................................................................................................... 77

This section outlines how the Group manages its capital and related financing costs.

Note 13.

Reconciliation of Earnings After Income Tax to Net Cash

Performance for the Year

Flow from Operating Activities ........................................................................................................................................................................................................................ 78

This section focuses on the results and performance of the Group. This covers both profitability and the resultant return to shareholders

OPERATING ASSETS AND LIABILITIES .......................................................................... 79

via earnings per share combined with cash generation.

Note 14.

Trade and Other Receivables ............................................................................................................................................................................................................................ 79

Operating Assets and Liabilities

Note 15.

Inventories .................................................................................................................................................................................................................................................................................. 80

Note 16. Non-Current Financial Assets ............................................................................................................................................................................................................................ 81

This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a result. Liabilities relating

to the Group’s financing activities are addressed in the Capital Structure section.

Note 17 .

Property, Plant and Equipment ........................................................................................................................................................................................................................ 82

Other Notes

Note 18. Mine Development .......................................................................................................................................................................................................................................................... 84

This section deals with the remaining notes that do not fall into any of the other categories.

Note 19.

Exploration and Evaluation Expenditure ............................................................................................................................................................................................ 84

NOTE 3.

BASIS OF PREPARATION

Note 20 .

Intangible Assets ................................................................................................................................................................................................................................................................ 85

Introduction and Statement of Compliance

Note 21 .

Trade and Other Payables ..................................................................................................................................................................................................................................... 86

Note 22 . Provisions ..................................................................................................................................................................................................................................................................................... 87

The Financial Report is a general-purpose Financial Report, which has been prepared in accordance with the requirements of the

Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards

Board.

OTHER NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

The Financial Report complies with International Financial Reporting Standards as issued by the International Accounting Standards

Note 23. Key Management Personnel ............................................................................................................................................................................................................................... 88

Board. The Financial Report has also been prepared on a historical cost basis unless otherwise stated in the notes to the financial

Note 24. Auditors’ Remuneration ............................................................................................................................................................................................................................................. 89

statements. Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosures. For

Note 25. Commitments and Contingencies ............................................................................................................................................................................................................... 90

Note 26. Related Parties ....................................................................................................................................................................................................................................................................... 91

Note 27 . Group Information .............................................................................................................................................................................................................................................................. 91

Note 28.

Events after the Balance Date .......................................................................................................................................................................................................................... 93

Note 29. New Accounting Standards and Interpretations ..................................................................................................................................................................... 93

the purposes of preparing the consolidated financial statements, the Company is a for-profit entity.

The Financial Report is presented in US dollars and all values are rounded to the nearest thousand dollars (US$1,000) unless otherwise

stated under the option available to the Company under Australian Securities and Investments Commission (ASIC) Corporations (Rounding

in Financial/Directors’ Reports) Instrument 2016/191.

5 6

5 7

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Changes in Accounting Policies

For the year ended 30 June 2022

Group Companies

The accounting policies adopted have been consistently applied to all the years presented, unless otherwise stated.

Some Group entities have a functional currency of US dollars which is consistent with the Group’s presentational currency. For all other

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had

no effect on the report results of the Group.

The Group has adopted all applicable new and amended Australian Accounting Standards and AASB Interpretations effective from

1 July 2021.

Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory

Group entities, the functional currency has been translated into US dollars for presentation purposes as follows:

• Assets and liabilities are translated using exchange rates prevailing at the balance date

• Revenues and expenses are translated using average exchange rates prevailing for the Consolidated Income Statement year

• Equity transactions are translated at exchange rates prevailing at the dates of transactions. The resulting difference from translation
is recognised in a foreign currency translation reserve. Upon the sale of a subsidiary the Functional Currency Translation Reserve
(FCTR) attributable to the parent is recycled to the Consolidated Income Statement.

for 30 June 2022 reporting periods and have not been early adopted by the Group. These standards, amendments or interpretations are

The functional currency of individual subsidiaries reflects their operating environment.

not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions

(refer Note 29).

Basis of Consolidation

The consolidated financial statements comprise the financial statements of Paladin Energy Ltd and its subsidiaries as at 30 June 2022

(the Group).

Subsidiaries are all entities over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights

to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities

of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from

the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Assets,

liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the Statement of Comprehensive

Income from the date the Group gains control until the date the Group ceases to control the subsidiary.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and

circumstances in assessing whether it has power over an investee, including:

• The contractual arrangement with the other vote holders of the investee

• Rights arising from other contractual arrangements

• The Group’s voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more

of the three elements of control.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group

and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses

are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries

have been changed where necessary to ensure consistency with the policies adopted by the Group.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

Foreign Currency Translation

Functional and Presentation Currency

Items included in the Financial Statements of each of the Group's entities are measured using United States Dollars (US Dollars), the

currency of the primary economic environment in which the entity operates ('the functional currency'). The Consolidated Financial

Statements are presented in US dollars.

Transactions and Balances

Foreign currency transactions are converted into the functional currency using the exchange rates prevailing at the dates of the

transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year

end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Income

Statement. Translation differences on available-for-sale financial assets are included in the available-for-sale reserve.

Fair value hierarchy

To provide an indication of the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into

the three levels prescribed under the accounting standards.

• Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is

based on quoted market prices at the end of the reporting period

• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that

maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required
to fair value an instrument are observable, the instrument is included in level 2

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions

that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of

contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to

the carrying amount of assets or liabilities affected in future periods.

Areas involving significant estimates or judgements are:

• Assessment of carrying values of property, plant and equipment, mine development costs, exploration and evaluation expenditure

and intangible assets associated with the Langer Heinrich Mine - Notes 17-20

• Estimated fair value of certain financial liabilities - Note 6

• Environmental rehabilitation provision - Note 22

• Useful lives of property, plant and equipment - Note 17

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations

of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

5 8

5 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

SEGMENT REPORTING

NOTE 4.

SEGMENT INFORMATION

Identification of Reportable Segments

The Company has identified its operating segments to be Exploration, Namibia and Australia, on the basis of the nature of the activity

and geographical location and different regulatory environments. The main segment activity in Namibia1 is the production and sale of

uranium from the mine located in this country’s geographic regions. The Australian segment includes the Company’s sales and marketing,

For the year ended 30 June 2022

Year ended
30 June 2022 (continued)

Australia

U$’000

Canada

US$’000

Namibia

Consolidated

US$’000

Non-current assets (excluding financial assets) by country

64,299

31,004

196,178

291,481

Additions to non-current assets by country

corporate and administration. The Exploration2 segment is focused on developing exploration and evaluation projects in Australia and

Property, Plant and Equipment

Canada.

Discrete financial information about each of these operating segments is reported to the Group’s executive management team on at least

Exploration and Evaluation Expenditure

a monthly basis.

The accounting policies used by the Group in reporting segments internally are the same as those contained in the accounts and in the

prior period.

Corporate charges comprise non-segmental expenses such as corporate office expenses. A proportion of the corporate charges are

allocated to Namibia and Exploration tenements with the balance remaining in Australia.

The following tables present revenue, expenditure and asset information regarding operating segments for the years ended 30 June

2022 and 30 June 2021.

Year ended
30 June 2022

Sales to external customers

Total consolidated revenue

Cost of sales

Gross profit

Other income

Other expenses

Segment loss before income tax and finance costs

Finance costs

Loss before income tax

Income tax expense

Net loss after tax

At 30 June 2022

Exploration

U$’000

Namibia

US$’000

Australia

Consolidated

US$’000

—

4,700

(4,693)

—

5,270

865

4,700

(4,693)

999

(18,833)

(18,241)

(31,938)

(13,556)

(17,376)

(30,932)

(6,417)

(6,589)

(13,006)

(19,973)

(23,965)

(43,938)

—

(1)

(19,973)

(23,966)

(43,939)

645

—

502

1,101

1,863

1,145

3,010

Exploration

U$’000

Namibia

US$’000

Australia

Consolidated

US$’000

—

2,985

(2,973)

—

5,475

2,985

(2,973)

5,515

(25,141)

(6,081)

(31,222)

(25,089)

(606)

(25,695)

(8,992)

(23,420)

(32,412)

(34,081)

(24,026)

(58,107)

—

(151)

(34,081)

(24,177)

(58,258)

Year ended
30 June 2021

Sales to external customers

Total consolidated revenue

Cost of sales

Gross profit

Other income

Other expenses

Segment loss before income tax and finance costs

Finance costs

Loss before income tax

Income tax expense

Net loss after tax

At 30 June 2021

Segment assets/total assets

94,840

215,156

51,1674

361,163

Year ended
30 June 2021

Australia

U$’000

Canada

US$’000

Namibia

Consolidated

US$’000

Non-current assets (excluding financial assets) by country

68,755

31,540

207,967

308,262

Segment assets/total assets

94,601

203,651

182,7423

480,994

1In May 2018, the Company received the consent of relevant stakeholders to place Langer Heinrich Mine (LHM) into care and maintenance and LHM stopped presenting ore to the
plant.
2In FY2022, the Company has only undertaken the work required to meet minimum tenement commitments.
3Includes US$176,514,000 in cash and cash equivalents.

Additions to non-current assets by country

Property, Plant and Equipment

Exploration and Evaluation Expenditure

4Includes US$30,350,000 in cash and cash equivalents.

566

—

510

—

2,167

3,243

6 0

6 1

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

CAPITAL STRUCTURE
The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to

The fair values of shareholder loans are based on discounted cash flows using a rate that the Company considers representative of an

unsecured borrowing rate available in the market. These are classified as level 3 fair values in the fair value hierarchy due to the use of

provide returns to shareholders and benefits for other stakeholders and to maintain an efficient capital structure to reduce the cost of

unobservable inputs, including Paladin’s own credit risk.

capital. Capital includes issued capital and all other equity reserves attributable to the equity holders of the parent.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least

In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to reduce debt.

12 months after the balance date.

The Group monitors capital on the basis of the level of return on capital and also the level of net cash/debt.

Details of the fair value of the Group’s other interest-bearing liabilities are set out in Note 8.

NOTE 5A. CASH AND CASH EQUIVALENTS

(a) Senior loans and borrowings

Cash at bank and on hand

Short-term bank deposits

Total cash and cash equivalents

NOTE 5B. RESTRICTED CASH

Restricted cash at bank

Total restricted cash and cash equivalents

2022

2021

US$’000

32,168

3,608

Paladin fully redeemed US$115,000,000 Senior Secured Notes in April 2021. The Senior Secured Notes were subsequently cancelled,

delisted and all security registrations have been discharged. Details of the redemption are set out below.

2022

2021

Maturity

US$’000

144,898

27,053

Non-Current

177,066

30,661

Senior Secured Notes redemption

Repayment of Senior Secured Notes issued

2023

2022

2021

US$’000

1,000

Senior Secured Notes redemption
premium & interest paid

Total redemption

(b) LHU’s loans from CNNC

—

115,000

42,765

157,765

The cash is restricted for use in respect of an environmental guarantee provided by Langer Heinrich Uranium (Pty) Ltd.

Recognition and measurement

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid

As part of the sale of the 25% interest in Langer Heinrich Mauritius Holdings Limited (LHMHL) in 2014 to CNNC Overseas Uranium

Holding Limited (CNNC), US$96,000,000 (representing 25%) of the intercompany shareholder loans owing by Langer Heinrich Uranium

(Pty) Ltd (LHU) to Paladin Finance Pty Ltd (PFPL) were assigned to CNNC under the same interest rate and conditions in place at the

time. Subsequent to the sale in 2014 Paladin, PFPL and CNNC have provided further shareholder loans to LHU.

investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject

Under the Shareholders’ Agreement between CNNC, PFPL and LHU, each shareholder has agreed not to demand repayment of the loans

to an insignificant risk of changes in value, and bank overdrafts.

NOTE 6.

INTEREST BEARING LOANS AND BORROWINGS

Non-Current

Senior Secured Notes

LHU’s loans from CNNC

(a)

(b)

Total Interest Bearing Loans and Borrowings

Recognition and measurement

2022

2021

US$’000

—

78,558

68,743

78,558

68,743

Loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Loans and borrowings are subsequently

measured at amortised cost. Any difference between the fair value (net of transaction costs) and the redemption amount is recognised

without the prior written consent of the other shareholder. As neither CNNC nor PFPL can demand repayment, the repayment of the

loans can be deferred. Repayment is dependent on LHU generating sufficient free cash flows to repay the loans. These loans have not

been guaranteed by Paladin. Interest on shareholder loans is also deferred until there are sufficient cash flows.

On consolidation, PFPL’s 75% share of the LHU intercompany shareholder loans are eliminated against the intercompany shareholder

loans receivable recorded in PFPL and therefore, they do not appear on Paladin’s consolidated statement of financial position. As a result

of the consolidation of 100% of LHU’s assets and liabilities, LHU’s shareholder loan liability to CNNC is recognised on the consolidated

statement of financial position.

On 1 January 2021, two shareholder loan facility agreements were extended with revised terms which included modifications to the term

and interest rate of the loans. The revised terms of the shareholder loans reflected a mix of fixed and floating rate interest and interest

free periods and considered that the LHM was in care and maintenance and not generating revenue. The shareholders loan terms may

not be reflective of market conditions for external borrowings at this time. The face value of the loans remained the same.

These revisions were considered a “substantial” modification under AASB9 Financial Instruments, which required the original loan

facilities to be “extinguished” and new loan facilities to be recognised at fair value. As a result, the book value of the total amount of the

shareholder loans amounting to US$400,438,000 (owing to the Group and CNNC at 31 December 2020) was derecognised and “new”

loans recognised at a fair value of US$247,633,000 at that date with the difference taken directly to equity as a shareholder contribution.

in the Consolidated Income Statement over the period of the borrowings using the effective interest method.

After eliminations, the fair value of the CNNC share of the loan facilities was recognised at US$64,432,000.

For the majority of the external borrowings, fair values are based on a discounted cash flow basis using quoted market prices (Level 1) or

observable market data (Level 2) inputs in the fair value hierarchy.

6 2

6 3

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

The difference between the fair value and face value of the loans was recognised in equity and will be unwound over the term of the

loans through the effective interest rate. At 30 June 2022 US$6,516,000 (2021 US$2,918,000) accretion expense had been recognised

on these loans.

In July 2021, PFPL and CNNC entered into further loan agreements to advance funds to LHU to fund care and maintenance and restart

capital requirements. These loans were also recognized at fair value. After eliminations, the difference between the fair value and face

value of these loans of US$644,000 has also been recognised in equity and will be unwound over the term of the loans through the

Date

Number of Shares

US$: A$

US$’000

Issue Price

Exchange Rate

Total

Balance 30 June 2021

2,677,756,397

2,489,082

August 2021

SARs exercised

effective interest rate. At 30 June 2022 US$21,000 (2021 US$Nil) accretion expense had been recognised on these loans.

September 2021

SARs exercised

NOTE 7 .

CONTRIBUTED EQUITY AND RESERVES

Issued and Paid Up Capital

Number of Shares

September 2021

SARs exercised

October 2021

SARs exercised

Ordinary shares

Issued and fully paid

2,977,779,002

2,677,756,397

2,645,778

2,489,082

January 2022

SARs exercised

March 2022

SARs exercised

2022

2021

US$’000

2022

2021

November 2021

SARs exercised

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

April 2022

Institutional offer

277,777,778

Recognition and measurement

May 2022

Share Purchase Plan

20,833,334

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a

deduction, net of tax, from the proceeds.

Movements in ordinary shares on issue

Transaction costs

Balance 30 June 2022

2,977,779,002

134,674

95,078

79,804

174,019

600,000

101,015

226,903

—

0.72

—

1.31636

151,934

1.41781

10,580

(5,929)

2,645,778

Date

Number of Shares

US$: A$

US$’000

Balance 30 June 2020

2,027,891,013

2,327,789

Issue Price

Exchange Rate

Total

December 2020

SARs exercised

December 2020

Conversion of PRs

January 2021

Conversion of PRs

March 2021

Conversion of PRs

1,056,623

14,250,000

March 2021

Share placement

520,330,943

April 2021

Institutional offer

April 2021

SARs exercised

May 2021

Conversion of PRs

May 2021

SARs exercised

June 2021

SARs exercised

70,712,253

245,195

14,250,000

326,377

193,993

—

0.37

—

Transfer from share-based
payment reserve

Transaction costs

Balance 30 June 2021

2,677,756,397

—

1.31480

146,427

1.29958

20,132

—

2,355

(7,621)

2,489,082

Consolidation
reserve

Listed
option
application
reserve

Share
based
payment
reserve

Foreign
currency
translation
reserve

Financial
assets
at FVOCI
reserve

Premium
on
acquisition
reserve

Total

Reserves

US$’000

Balance at 1 July 2020

48,319

137

48,303

(183,347)

2,233

14,086

(70,269)

Share-based payments

Foreign currency translation

Revaluation of financial assets

—

(261)

—

2,975

—

8,201

—

(261)

2,975

8,201

Balance at 30 June 2021

48,319

137

48,042

(180,372)

10,434

14,086

(59,354)

Share-based payments

Foreign currency translation

Transfer of reserves on deregistration of
subsidiaries through the income statement

Transfer of gain on disposal of equity
investments at fair value through Other
Comprehensive Income

—

1,885

—

(1,254)

(2,760)

—

1,885

(1,254)

(2,760)

—

(10,434)1

—

(10,434)

—

Balance at 30 June 2022

48,319

137

49,927

(184,386)

—

14,086

(71,917)

Relates to the sale of 90M Lotus Resources Ltd shares

6 4

6 5

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Nature and Purpose of Reserves

Consolidation reserve

This reserve is the result of the difference between the fair value and the net assets of a reduction of interest in controlled entities where

Paladin retained control.

Listed option application reserve

This reserve consists of proceeds from the issue of listed options, net of expenses of issue. These listed options expired unexercised and

no restriction exists for the distribution of this reserve.

Share-based payments reserve

This reserve is used to record the value of equity benefits provided to Directors, employees and consultants as part of their remuneration.

Financial assets at fair value in other comprehensive income

This reserve records the changes in fair value of certain investments in equity securities in Other Comprehensive Income. The Group

transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

Foreign currency translation reserve

This reserve is used to record exchange differences arising on translation of the Group entities that do not have a functional currency of

US dollars and have been translated into US dollars for presentation purposes, as described in Note 3.

Premium on acquisition reserve

This reserve represents the premium paid on the acquisition of an interest in Summit Resources Ltd.

NOTE 8.

FINANCIAL RISK MANAGEMENT

Financial Risk Management Objectives and Policies

The Group’s management of financial risk is aimed at ensuring net cash flows are sufficient to:

• Meet all its financial commitments; and

• Maintain the capacity to fund corporate growth activities.

For the year ended 30 June 2022

The financial instruments exposed to movements in the Australian dollar are as follows:

Financial assets

Cash and cash equivalents

Trade and other receivables

Non-current financial assets

Financial liabilities

Trade and other payables

Net exposure

2022

2021

US$’000

163,814

17,428

201

—

416

12,880

164,015

30,724

(363)

(1,097)

163,652

29,627

The following table summarises the sensitivity of financial instruments held at balance sheet date to movements in the exchange rate of

the Australian dollar to the US dollar, with all other variables held constant. The 9% sensitivity is based on reasonably possible changes,

over a financial year, using the observed range of actual historical rates for the preceding five year period.

IMPACT ON PROFIT/(LOSS)

IMPACT ON EQUITY

2022

2021

2022

2021

US$’000

The Group monitors its forecast financial position and manages funds on a group basis on a regular frequency.

Post-tax gain/(loss)

Market, liquidity and credit risk (including foreign exchange, commodity price and interest rate risk) arise in the normal course of the

Group’s business. These risks are managed under Board approved directives which underpin practices and processes. The Group’s

principal financial instruments comprise interest bearing debt, cash and short-term deposits and available for sale financial assets. Other

financial instruments include trade receivables and trade payables, which arise directly from operations.

Market Risk

Foreign Exchange Risk

AUD/USD +9% (2021: +9%)

11,330

(2,051)

AUD/USD -9% (2021: -9%)

(9,459)

1,712

The financial instruments exposed to movements in the Namibian dollar against the USD are as follows:

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures.

Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a currency that is not the functional

currency of the relevant Group company.

Financial assets

The Group’s borrowings and deposits are largely denominated in both US and Australian dollars. Currently there are no foreign exchange

Cash and cash equivalents

hedge programmes in place. However, the Group finance function manages the purchase of foreign currency to meet operational

requirements.

6 6

Trade and other receivables

Financial liabilities

Trade and other payables

Net exposure

—

891

(744)

2022

2021

US$’000

332

139

471

(265)

206

116

(169)

(53)

6 7

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Based on the Group’s net exposure at the balance date, a reasonably possible change in the exchange rate would not have a material

The following table summarises the sensitivity of financial instruments held at balance date to movements in the market price of available-

for-sale financial instruments, with all other variables held constant. The 25% sensitivity is based on reasonable possible changes, over

a financial year, using the observed range of actual historical prices.

impact on profit or equity.

Interest Rate Risk

Interest rate risk is the risk that the Group’s financial position will be adversely affected by movements in interest rates that will increase

the cost of floating rate debt, create opportunity losses on fixed rate borrowings in a falling interest rate environment or reduce interest

income.

The interest rate risk on cash balances is not considered material. Cash at bank earns interest at floating rates based on daily bank

deposit rates. Short-term deposits are made for varying periods depending on the immediate cash requirements of the Group and earn

interest at the respective short-term deposit rates.

The interest rate risk on interest-bearing liabilities is not considered to be a material risk. These loans represent the 25% of intercompany

shareholder loans owing by LHU to Paladin Finance Pty Ltd (PFPL) that were assigned to CNNC upon the sale of a 25% interest in

LHMHL to CNNC in 2014. These loans maintain the same conditions as the intercompany shareholder loans and have a range of fixed

and floating rates. During the previous year, certain shareholder loans were extended with revised conditions. Note 6 details the impact

Post-tax gain/(loss)

Market price +25% (2021: +25%)

Market price -25% (2021: -25%)

Post-tax impact on reserve

of the extensions. All other financial assets and liabilities in the form of receivables, investments in shares, payables and provisions, are

Market price +25% (2021: +25%)

non-interest bearing.

The Group currently does not engage in any hedging or derivative transactions to manage interest rate risk.

The floating rate financial instruments exposed to interest rate movements are as follows:

Market price -25% (2021: -25%)

Liquidity Risk

Financial assets

Cash and cash equivalents

Restricted cash

Financial liabilities

Interest-bearing liabilities

Net exposure

Market Price Risk

2022

2021

US$’000

The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet the Group’s financial commitments

in a timely and cost effective manner. The Group finance function continually reviews the Group’s liquidity position including cash flow

forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels. Sensitivity analysis is conducted on a range

of pricing and market assumptions to ensure the Group has the ability to meet commitments. This enables the Group to manage cash

flows on a long term basis and provides the flexibility to pursue a range of funding alternatives if necessary. Note 6 details the repayment

177,066

30,661

obligations in respect of the amount of the facilities.

The maturity profile of the Group’s payables based on contractual undiscounted payments is as follows:

Payables maturity analysis

Total

US$’000

<1 year

US$’000

1-2 years

US$’000

2-3 years

US$’000

>3 years

US$’000

1,000

178,066

31,661

(52,732)

(46,066)

125,334

(14,405)

2022

Trade and other payables

2,211

LHU’s loans from CNNC - principal

Interest payable on CNNC loans

81,739

27,766

—

Total payables

111,716

2,211

Price risk is the risk that the Group’s financial position will be adversely affected by movements in the market value of its available-for-

sale financial assets.

The financial instruments exposed to movements in market value are as follows:

Financial assets

Other financial assets

6 8

2022

2021

US$’000

Trade and other payables

2,262

2021

—

12,880

Interest payable on CNNC loans

LHU’s loans from CNNC - principal

80,928

24,656

—

Total payables

107,846

2,262

IMPACT ON EQUITY

2022

2021

US$’000

—

2,254

(2,254)

2,254

(2,254)

—

81,739

27,766

109,505

—

80,928

24,656

105,584

6 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Credit Risk

For the year ended 30 June 2022

For Other Receivables, the Group considers the probability of default upon the initial recognition of an asset. The Group also considers

Credit risk arises from cash and cash equivalents, contractual cash flows from other receivables carried at amortised cost and deposits

whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether

with banks and financial institutions, as well as credit exposures to trade receivables. Credit risk is the risk that a contracting entity will

there is a significant increase in credit risk the Company:

not complete its obligation under a financial instrument that will result in a financial loss to the Group. The carrying amount of financial

• compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of

assets represents the maximum credit exposure. The Group’s receivables are due from recognised, creditworthy third parties. In addition,

initial recognition

receivable balances are monitored on an ongoing basis.

• considers available reasonable and supportive forwarding-looking information in calculating the expected credit loss rates.

While cash and cash equivalents are also subject to the impairment requirements of AASB 9 the identified impairment loss is expected

Where possible, the Group has applied an expected credit loss based on industry provided information.

to be immaterial.

Fair Values

The maximum exposure to credit risk at the reporting date was a total of US$183,249,000 (2021: US$38,415,000), comprising cash and

The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below:

trade and other receivables.

Current

Cash and cash equivalents1

Restricted cash2

Trade and other receivables – other entities

Non-Current

2022

2021

US$’000

177,066

30,661

1,000

4,989

1,000

1,877

183,055

33,538

Year ended 30 June 2022

Year ended 30 June 2021

(Level 1)

(Level 2)

(Level 3)

Total

(Level 1)

(Level 2)

(Level 3)

Total

US$’000

Financial assets for which fair values are disclosed

Australia listed shares

Share receivables

Cash receivables

Total financial assets

—

12,880

1,926

2,796

—

4,722

12,880

—

12,880

1,889

4,364

6,253

19,133

Trade and other receivables – other entities

194

4,776

deduction for transaction costs. The fair value of the listed equity investments is based on quoted market prices which are classified as

Quoted market price represents the fair value determined based on quoted prices on active markets as at the reporting date without any

Total

183,249

38,314

Level 1 inputs.

For financial instruments not quoted in active markets, the Group uses valuation techniques such as present value techniques, comparison

to similar instruments for which market observable prices exist and other relevant models used by market participants. These valuation

2022

Other receivables

Total receivables

2021

Other receivables

Total receivables

Receivables ageing analysis

techniques use both observable (Level 2) and unobservable (Level 3) market inputs.

Total

US$’000

5,183

6,653

<1 year

US$’000

4,989

1,877

1-2 years

US$’000

2-3 years

US$’000

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred

between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value

194

380

—

4,396

measurement as a whole) at the end of each reporting period.

Due to the short-term nature of some of the non-current other receivables, their carrying amount is considered to be the same as their

fair value.

Capital Management

When managing capital, management’s objective is to ensure adequate cash resources to meet the Company’s commitments are

maintained, as well as to maintain optimal returns to shareholders through ensuring the lowest cost of capital available to the entity.

The Company utilises a combination of debt and equity to provide the cash resources required. Management reviews the capital structure

from time to time as appropriate.

The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance

The Group finance function is responsible for the Group’s capital management, including management of long-term debt and cash as

for all trade receivables.

1 The Group’s maximum deposit with a single financial institution represents 49% (2021: 62%) of cash and cash equivalents. This financial institution has a credit rating of Aa3
(2021: Aa3).
2 Restricted cash is held in Namibia, this financial institution has a credit rating of Ba2 (2021: Ba2).

part of the capital structure. This involves the use of corporate forecasting models which enable analysis of the Group’s financial position

including cash flow forecasts to determine the future capital management requirements. To ensure sufficient funding for operational

expenditure and growth activities, a range of assumptions are modelled so as to provide the flexibility in determining the Group’s optimal

future capital structure.

7 0

7 1

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Debt (face value plus accrued interest)1

Less cash and cash equivalents

Net Debt

Total equity

Total Capital

Gearing Ratio

(defined as net debt/total capital)

PERFORMANCE FOR THE YEAR

NOTE 9.

REVENUE

Sale of uranium

Total

2022

2021

US$’000

—

(177,066)

(30,661)

(177,066)

(30,661)

358,412

246,708

181,346

216,047

2022

2021

US$’000

4,700

2,985

4,700

2,985

During FY2022 and FY2021 the Company participated in a uranium spot trading opportunity.

Recognition and Measurement

Amounts disclosed as revenue are net of duties and taxes paid. The Group’s main source of revenue is the sale of uranium, however the

Langer Heinrich Mine is in Care and Maintenance and consequently minimal revenue is being generated. Revenue is measured based on

the consideration specified in a contract with a customer. The Group’s sales arrangements with its customers are pursuant to enforceable

contracts that provide for the nature and timing of satisfaction of performance obligations, including payment terms and payment due

dates. Each delivery is considered a separate performance obligation under the contract.

For the year ended 30 June 2022

NOTE 10 .

INCOME AND EXPENSES

Cost of Sales

Inventory purchased

Total

Other Income

Other income

Total

Foreign exchange loss (net)

Administration, Marketing and Non-Production Costs

Corporate and marketing

Corporate restructure costs

LHM mine site

LHM depreciation

Other

Total

Finance Costs

LHU’s loans from CNNC

The Group recognises revenue when it transfers control over a good or service to a customer. The Group has concluded that this occurs

on the delivery of the product to the customer at the converter. When uranium is delivered to converters, the converter will credit the

Accretion expense on shareholder loans

Group’s account for the volume of accepted uranium. Based on delivery terms in the sales contract with its customer, the converter will

transfer the title of a contractually specified quantity of uranium to the customer’s account at the converter’s facility. At this point, control

Mine closure provision accretion expense

has been transferred and the Group recognises revenue for the uranium supply.

Lease interest expense

Senior Secured Notes

Accretion expense relating to Senior Secured Notes

Other finance costs

Total

Total depreciation and amortisation expense

2022

2021

US$’000

(4,693)

(2,973)

(4,693)

(2,973)

999

2,452

(8,179)

(3,934)

(2,694)

(3,539)

(29)

(300)

(3,727)

(3,011)

(15,106)

(15,120)

(2,203)

(2,255)

(23,759)

(24,225)

(3,111)

(2,946)

(6,537)

(2,918)

(3,306)

(3,128)

(52)

(2)

—

(12,019)

(11,352)

(47)

(13,006)

(32,412)

(15,310)

(15,241)

1Excludes LHU’s loans from CNNC that were assigned by PFPL to CNNC and form part of CNNC’s 25% interest in LHU as the Group views these as shareholder loans to LHU.

7 2

7 3

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Recognition and Measurement

Borrowing Costs

For the year ended 30 June 2022

2022

20211

US$’000

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete

and prepare the asset for its intended use or sale.

Numerical Reconciliation of Income Tax Benefit to Prima Facie Tax Payable

Other borrowing costs are expensed as incurred including the unwinding of discounts related to mine closure provisions. When relevant,

Loss before income tax expense from continuing operations

(43,938)

(58,107)

the capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate applicable

to the entity’s outstanding borrowings during the year.

Tax at the Australian tax rate of 30% (2021 – 30%)

(13,182)

(17,432)

(1,223)

(4,899)

730

—

1,356

—

13,676

21,126

2022

20211

US$’000

Employee Benefits Expense

Wages and salaries

Defined contribution superannuation

Share-based payments

Other employee benefits

Total

2022

2021

US$’000

(3,128)

(2,718)

(358)

(289)

(1,997)

(2,094)

(571)

(511)

(6,054)

(5,612)

Difference in overseas tax rates

Non-deductible items

Under/over prior year adjustment

Deferred tax assets on losses not recognised

Income tax expense reported in the Consolidated Income Statement

151

The table above sets out personnel costs expensed during the year and are included within Administration, Marketing and Non-Production

Tax Losses

Costs within the Consolidated Income Statement.

NOTE 11 .

INCOME AND OTHER TAXES

Income Tax Expense

Current income tax

Current income tax expense

Deferred income tax

Related to the origination and reversal of temporary differences

Income tax expense reported in the Income Statement

Amounts Charged or Credited Directly to Equity

Deferred income tax related to items charged or credited directly to equity:

Fair value adjustment to CNNC Loans

Tax losses recognised to offset fair value adjustment

Income tax benefit reported in equity

1 Comparatives have been restated to conform with current year presentation.

2022

20211

US$’000

—

151

—

151

(193)

(13,815)

193

—

13,815

—

Australian unused tax losses and capital losses for which no deferred tax asset has been recognised2 3

(741,735)

(750,692)

Other unused tax losses for which no deferred tax asset has been recognised4

(373,531)

(380,039)

Total unused tax losses for which no deferred tax asset has been recognised

(1,115,266)

(1,130,731)

The gross value of unused capital losses for which no deferred tax asset has been recognised are US$660.4M (2021: US$663.7M). These
unrecognised capital losses were predominantly generated from the sale of Paladin (Africa) Ltd. The benefit of these unused capital losses will
only be obtained if sufficient future capital gains are made and the losses remain available under tax legislation.

Deferred Income Tax1

Deferred tax liabilities

Accelerated prepayment deduction for tax purposes

(297)

(111)

Accelerated depreciation for tax purposes

Exploration expenditure

Inventory / Consumables

Other

Gross deferred tax liabilities

Set off of deferred tax assets

Net deferred tax liabilities

1 Comparatives have been restated to conform with current year presentation.
2 Including tax losses transferred from Summit Resources Limited on consolidation.
3 Prior year comparatives as at 30 June 2021 have been restated by the inclusion of capital losses.
4 Excluding tax losses from discontinued operation.

(65,977)

(70,820)

(3,578)

(2,686)

(3,144)

(3,152)

(4,006)

(7,856)

(77,002)

(84,625)

77,002

84,625

—

7 5

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Tax Losses

Deferred tax assets

2022

2021

US$’000

For the year ended 30 June 2022

NOTE 12 . EARNINGS PER SHARE

2022

2021

US cents

Loss per share attributable to ordinary equity holders of the Parent from continuing operations

(1.0)

(2.0)

The following reflects the income and share data used in the basic and diluted earnings per share computations:

Net loss attributable to ordinary equity holders of the Parent from continuing operations

(26,743)

(43,983)

2022

2021

US$’000

2022

Number
of Shares

2021

Number
of Shares

Weighted average number of ordinary shares used in calculation of basic earnings per share

2,747,439,635

2,201,765,877

Weighted average number of ordinary shares used in calculation for diluted earnings per share

2,759,963,496

2,205,415,804

Total number of securities not included in weighted average calculation due to their antidilutive nature
in the current period, that could potentially dilute basic earnings per share in the future

12,523,861

3,649,927

Recognition and Measurement

Basic Earnings Per Share

Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average

number of ordinary shares outstanding during the period.

Diluted Earnings Per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income

tax effect associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued

for no consideration in relation to dilutive potential ordinary shares. Diluted earnings per share is the same as basic earnings per share in

2022 and 2021 as the number of potentially dilutive shares does not change the result of earnings per share.

Revenue losses available for offset against future taxable income

163,427

161,017

Foreign currency balances

Interest bearing liabilities

Provisions

Other

Deferred tax assets not recognised

Gross deferred tax assets

Set off against deferred tax liabilities

Net deferred tax assets recognised

48,487

45,582

33,600

29,269

7,443

3,118

8,085

2,755

(179,073)

(162,083)

77,002

84,625

(77,002)

(84,625)

—

Paladin and all its wholly owned Australian resident entities are part of a tax-consolidated group under Australian tax law. The net

deferred tax assets recognised are in respect of revenue losses expected to be offset against future taxable income.

This benefit for tax losses will only be obtained if:

1. The Consolidated Entities derive future assessable income of a nature and of an amount sufficient to enable the benefit from the

deductions for the losses to be realised;

2. The Consolidated Entities continue to comply with the conditions for deductibility imposed by tax legislation; and

3. No changes in tax legislation adversely affect the Consolidated Entities in realising the benefit from the deductions for the losses.

Recognition and Measurement

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the

taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted, at the

reporting date in the countries where the Group operates and generates taxable income.

Current income tax relating to items recognised directly in other comprehensive income or equity is recognised in other comprehensive

income or equity respectively and not in the statement of profit or loss. Management periodically evaluates positions taken in the

tax returns with respect to situations in which applicable tax regulations are subject to integration and establishes provisions where

appropriate.

Deferred tax assets and liabilities are recognised using the full liability method for temporary differences at the tax rates expected to

apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted

for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to

measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an

asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction,

other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable

amounts will be available to utilise those temporary differences and losses. Current and deferred tax balances attributable to amounts

recognised directly in equity are also recognised directly in equity. Deferred tax assets and liabilities are offset only if a legally enforceable

right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable

entity and the same taxation authority.

7 6

7 7

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

NOTE 13. RECONCILIATION OF EARNINGS AFTER INCOME TAX TO NET CASH FLOW FROM OPERATING ACTIVITIES

2022

2021

US$’000

For the year ended 30 June 2022

OPERATING ASSETS AND LIABILITIES

NOTE 14. TRADE AND OTHER RECEIVABLES

Reconciliation of Net Loss After Tax to Net Cash
Flows Used in Operating Activities

Net loss

Adjustments for

Depreciation and amortisation

Sundry income

Loss/(Gain) on disposal of property, plant and equipment

Net exchange differences

Share-based payments

Non-cash financing costs

Accretion expense on shareholder loan

Changes in operating assets and liabilities

Increase in prepayments

Increase in trade and other receivables

Decrease in inventories

(Decrease)/increase in trade and other payables

(Decrease)/increase in provisions

Net cash flows used in operating activities

(6,794)

(5,565)

(43,939)

(58,258)

Trade receivables and other receivables

Current

GST and VAT

Total current receivables

Non-Current

Trade receivables and other receivables

Long term deposits

Total non-current receivables

15,310

15,241

(642)

(1,015)

8,206

1,997

6,470

6,537

(4)

(55)

(641)

(68)

(12)

3,525

2,028

29,447

2,918

(37)

(128)

700

Notes

2022

US$’000

2021

US$’000

4,989

5,084

194

1,877

101

1,978

4,396

380

4,776

Trade receivables are non-interest bearing. Carrying value approximates fair value due to the short-term nature of the

receivables. Other receivables are amounts that generally arise from transactions outside the usual operating activities of the

Group.

Future receivables from the sale of Paladin (Africa) Limited include:

• A$3M shares in Lotus Resources Ltd due to be issued 13 March 2023;

• US$3M repayment of the environmental performance bond due 13 March 2023.

Future shares - Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gains/(losses)

in the statement of profit or loss as applicable.

Future cash receivables - An expected credit loss model is used for calculating an allowance for doubtful debts. Details about the

Group’s impairment policies and the calculation of the expected credit loss are provided in Note 8.

GST and VAT receivables relates to amounts due from Governments in Australia, Namibia and Canada.

Long term deposits relates to guarantees provided by a bank for the corporate office lease, tenements and corporate credit

cards.

Recognition and Measurement

Trade Receivables

Receivables are initially recognised at fair value and subsequently at the amounts considered receivable. Trade receivables are amounts

due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within

30 days and therefore are all classified as current.

Due to the short-term nature of the current receivables, their carrying amount is assumed to approximate fair value.

Other Receivables

These amounts generally arise from transactions outside the usual operating activities of the Group.

7 8

7 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

The Group assesses on a forward-looking basis the expected credit loss associated with its financial instruments carried at amortised

NOTE 16. NON-CURRENT FINANCIAL ASSETS

cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a

significant increase in credit risk.

For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be

recognised from initial recognition of the receivables.

Non-current financial assets

2022

2021

US$’000

—

12,880

Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation

The Group held an investment in Lotus Resources Limited at 30 June 2021 of 90,000,000 shares subject to a 12-month voluntary escrow

of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual

which expired on 13 March 2021. Since 1 July 2021, the shares were sold off-market at AU$0.20 per share, for gross proceeds of A$18M

payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net impairment losses

(US$13,386,000). Immediately prior to the sale the shares were revalued to a fair value of US$14,879,000 based on the closing share

within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

price immediately prior to the sale. On sale, the amount in the Asset Revaluation Reserve associated with those shares of US$10,866,000

was transferred to retained earnings (net of tax $Nil). Accordingly, the Consolidated Statement of Other Comprehensive Income shows

a gain of US$432,000 for the year ended 30 June 2022. The Revaluation Reserve associated with the Lotus Resources shares as of

30 June 2021 (US$10,434,000) was transferred to Retained Profits/Accumulated Losses.

Recognition and Measurement

Financial assets are recognised on trade date, being the date on which the Group commits to purchase or sell the asset.

Equity Instruments

The Group measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and

losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Consolidated Income

Statement following the derecognition of the investment. Dividends from such investments continue to be recognised in the Consolidated

Income Statement as other income when the Group’s right to receive payments is established.

Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the Consolidated Income Statement as

applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately

from other changes in fair value.

NOTE 15.

INVENTORIES

Current

Stores and consumables (at cost)

Total current inventories at the lower of cost and net realisable value

Inventory Expense

2022

2021

US$’000

5,100

5,123

Uranium inventories purchased for subsequent sale by the Group during the year ended 30 June 2022 were recognised as an expense

totalling US$4,692,500 (2021: US$2,973,000).

Write-down of Inventories

During 2022 stores and consumables held at LHM were written down by US$5,411 (2021: US$5,105) due to obsolescence.

Recognition and Measurement

Consumable stores inventory are valued at the lower of cost and net realisable value using the weighted average cost method, after

appropriate allowances for redundant and slow moving items.

Finished goods and work in progress inventory are valued at the lower of cost and net realisable value using the weighted average cost

method. Cost is derived on an absorption costing basis, including both fixed and variable production costs and attributable overheads

incurred up to the delivery point where legal title to the product passes. No accounting value is attributed to stockpiles containing ore

at less than the cut-off grade.

The costs of production include labour costs, materials and contractor expenses which are directly attributable to the extraction and

processing of ore (including any recognised expense of stripping costs); the depreciation of property, plant and equipment used in the

extraction and processing of ore; and production overheads.

Significant Estimates and Assumptions

Net Realisable Value of Inventories

The Group reviews the carrying value of inventories regularly to ensure that their cost does not exceed net realisable value. In determining

net realisable value various factors are taken into account, including sales prices and costs to complete inventories to their final form.

8 0

8 1

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

NOTE 17 . PROPERTY, PLANT AND EQUIPMENT

Total

Plant and
Equipment

Land and
Buildings

Construction
Work in Progress

US$’000

2022

Net carrying value

At 1 July 2021

Additions

178,089

172,925

4,408

1,015

175

—

Depreciation and amortisation expense

(12,812)

(12,448)

(364)

Disposals

Foreign currency translation

At 30 June 2022

Cost

(12)

(6)

(12)

(6)

—

166,274

160,634

4,044

362,863

351,407

9,860

Accumulated depreciation

(196,589)

(190,773)

(5,816)

756

840

—

1,596

—

2021

Net carrying value

At 1 July 2020

Additions

190,889

185,361

4,772

756

—

Depreciation and amortisation expense

(12,819)

(12,455)

(364)

Disposals

Foreign currency translation

At 30 June 2021

Cost

(38)

—

178,089

172,925

4,408

380,059

369,442

9,861

Accumulated depreciation

(201,970)

(196,517)

(5,453)

—

756

—

For the year ended 30 June 2022

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable

that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other

repairs and maintenance are charged to the Consolidated Income Statement during the financial period in which they are incurred.

Property, plant and equipment costs include both the costs associated with construction of equipment associated with establishment of

an operating mine, and the estimated costs of dismantling and removing the asset and restoring the site on which it is located.

Land is not depreciated. Depreciation on other assets is calculated using the unit of production basis or the straight line method to

allocate their cost amount, net of their residual values, over their estimated useful lives, as follows:

• Buildings

• Databases

• Plant and equipment

• Leasehold improvements

• Mine plant and equipment

20 years

10 years

2-6 years

period of lease

remaining useful life of the assets

The estimates of useful lives, residual values and depreciation method are reviewed at the end of each reporting period with the effect

of any changes in estimate accounted for on a prospective basis.

Significant Estimates and Assumptions

Impairment of Property, Plant and Equipment; Mine Development and Intangibles

Property, plant and equipment; mine development and intangibles are tested for impairment whenever events or changes in circumstances

indicate that the carrying value may not be recoverable.

The Group conducts an internal review of asset values at each reporting date, which is used as a source of information to assess for

any indicators of impairment. Factors, such as changes in uranium prices, production performance and mining and processing costs are

monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset’s recoverable amount

is calculated.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable

amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are

grouped at the lowest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from

other assets or groups of assets (cash-generating unit or CGU).

The future recoverability of the property, plant and equipment, mine development and intangibles is dependent on a number of key

factors including: uranium price, capex, life of mine, restart date, discount rates used in determining the estimated discounted cash flows,

foreign exchanges rates, tax rates, the level of proved and probable reserves and measured, indicated and inferred mineral resources,

future technological changes which could impact the cost of production and future legal changes, including changes to environmental

restoration obligations.

Paladin did not identify any impairment indicators in relation to the Langer Heinrich Mine CGU.

Property, Plant and Equipment Pledged as Security for Liabilities

No property, plant and equipment has been pledged as security.

Recognition and Measurement

All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost

includes expenditure that is directly attributable to the acquisition of the items.

8 2

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

NOTE 18. MINE DEVELOPMENT

Mine development – at cost

Less accumulated depreciation and impairment

Net carrying value – mine development

Net carrying value at start of year

Depreciation and amortisation expense

Net carrying value at end of year

Recognition and Measurement

Mine development

2022

2021

US$’000

63,091

(48,116)

(46,343)

14,975

16,748

18,548

(1,773)

(1,800)

14,975

16,748

For the year ended 30 June 2022

Exploration and evaluation expenditure is allocated separately to specific areas of interest. Such expenditure comprises net direct costs

and an appropriate portion of related overhead expenditure directly related to activities in the area of interest.

Costs related to the acquisition of properties that contain Mineral Resources are allocated separately to specific areas of interest.

If costs are not expected to be recouped through successful development and exploitation of the area of interest, or alternatively by sale,

costs are expensed in the period in which they are incurred.

Exploration and evaluation expenditure that is capitalised is included as part of cash flows from investing activities, whereas exploration

and evaluation expenditure that is expensed is included as part of cash flows from operating activities.

When a decision to proceed to development is made, the exploration and evaluation capitalised to that area is transferred to mine

development. All costs subsequently incurred to develop a mine prior to the start of mining operations within the area of interest are

capitalised and carried at cost. These costs include expenditure incurred to develop new ore bodies within the area of interest, to define

further mineralisation in existing areas of interest, to expand the capacity of a mine and to maintain production.

Capitalised amounts for an area of interest may be written down to their recoverable amount if the area of interest’s carrying amount is

greater than their estimated recoverable amount.

Since 30 June 2021, there have been no events or changes in circumstances to indicate that the carrying value may not be recoverable.

Pre-production costs are deferred as development costs until such time as the asset is capable of being operated in a manner intended

NOTE 20 .

INTANGIBLE ASSETS

by management and depreciated on a straight line basis. Post-production costs are recognised as a cost of production.

Significant Judgements, Estimates and Assumptions

Proved and Probable Reserves

The Group uses the concept of a life of mine as an accounting value to determine such things as depreciation rates and the appropriate

period to discount mine closure provisions. In determining life of mine, the proved and probable reserves measured in accordance with

the 2012 edition of the JORC Code specific to a mine are taken into account which by their very nature require judgements, estimates

and assumptions.

NOTE 19. EXPLORATION AND EVALUATION EXPENDITURE

The following table details the expenditures on interests in mineral properties by area of interest for the year ended 30 June 2022:

At 30 June

Intangible assets – at cost

Less accumulated depreciation and impairment

Net carrying value – intangible assets

2022

2021

US$’000

17,803

(10,010)

(9,491)

7,793

8,312

Areas of interest

US$’000

Movements in each group of intangible asset during the financial year are set out below:

Valhalla/
Skal

Isa
North

Carley
Bore

Canada

Manyingee

Fusion

LHM

Total

Movements in Intangible Assets

Amortisation of US$519,000 (2021: US$519,000) is included in non-production costs in the Consolidated Income Statement.

Balance 1 July 2020

39,441

7,543

7,866

27,885

7,416

159

3,059

93,369

Expenditure capitalised

Foreign exchange differences

—

259

—

510

2,945

108

—

2,167

3,243

—

2,945

Balance 30 June 2021

39,520

7,802

7,917

31,340

7,524

228

5,226

99,557

Expenditure capitalised

Foreign exchange differences

116

—

280

—

502

—

(1,240)

112

—

1,863

3,010

—

(1,240)

Balance 30 June 2022

39,636

8,082

7,965

30,602

7,636

317

7,089

101,327

2022

Net carrying value at 1 July 2021

Amortisation expense

Net carrying value at 30 June 2022

2021

Net carrying value at 1 July 2020

Recognition and Measurement

Exploration and evaluation expenditure related to areas of interest is capitalised and carried forward to the extent that:

Amortisation expense

1. Rights to tenure of the area of interest are current; and

2. Costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively by its sale.

Net carrying value at 30 June 2021

8 4

Right to Supply of
Power

Right to Supply of
Water

Total

US$’000

2,328

(145)

2,183

2,473

(145)

2,328

5,984

(374)

5,610

6,358

(374)

5,984

8,312

(519)

7,793

8,831

(519)

8,312

8 5

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Description of the Group’s Intangible Assets

Right to supply of power

LHU has entered into a contract with NamPower in Namibia for the right to access power at the LHM. In order to obtain this right,

the power line connection to the mine was funded by LHU. However, ownership of the power line rests with NamPower. The

amount funded is being amortised on a straight line basis.

Right to supply of water

For the year ended 30 June 2022

NOTE 22 . PROVISIONS

Current

Employee benefits

LHU has entered into a contract with NamWater in Namibia for the right to access water at LHM. In order to obtain this right, the

water pipeline connection to the mine was funded by LHU. However, ownership of the pipeline rests with NamWater. The amount

Total current provisions

funded is being amortised on a straight line basis.

Recognition and Measurement

Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible asset acquired

in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost

Non-Current

Employee benefits

less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised

Environmental rehabilitation provision

development costs, are not capitalised and expenditure is recognised in the Consolidated Income Statement in the year in which the

2022

2021

US$’000

335

540

136

—

40,407

42,073

40,543

42,073

expenditure is incurred.

The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised over the

useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period

and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in

the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for

prospectively by changing the amortisation period or method, as appropriate, which is a change in accounting estimate. The amortisation

expense on the intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of

the intangible asset.

A summary of the policies applied to the Group’s intangible assets is as follows:

Right to use water and power supply

Useful lives

Life of mine

Amortisation method used

Straight line method over the remaining useful life (16 years). The amortisation method is reviewed at

each financial year-end.

Impairment testing

Annually and more frequently when an indication of impairment exists.

NOTE 21 . TRADE AND OTHER PAYABLES

Current

Trade and other payables

Total current payables

2022

2021

US$’000

2,211

2,262

Trade payables are unsecured, non-interest bearing and are normally settled on 30 day terms.

Recognition and Measurement

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the

end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase

of these goods and services.

Total non-current provisions

Movements in Provisions

Movements in provisions during the financial year, excluding provisions relating to employee benefits, are set out below:

At 1 July 2021

Unwinding of discount rate

Foreign currency movements

At 30 June 2022

Nature and Timing of Provisions

Environmental rehabilitation

Environmental
Rehabilitation

US$’000

42,073

3,306

(4,972)

40,407

A provision for environmental rehabilitation and mine closure has been recorded in relation to the LHM. A provision is made for

rehabilitation work when the obligation arises and this is recognised as a cost of production or development as appropriate. Additionally,

the provision includes the costs of dismantling and demolition of infrastructure or decommissioning, the removal of residual material and

the remediation of disturbed areas specific to the infrastructure to a state acceptable to various authorities.

Recognition and Measurement

Provisions

Mine closure and restoration costs include the costs of dismantling and demolition of infrastructure or decommissioning, the removal

of residual material and the remediation of disturbed areas specific to the infrastructure. Mine closure costs are provided for in the

accounting period when the obligation arising from the related disturbance occurs, whether this occurs during the mine development or

during the production phase, based on the net present value of estimated future costs.

As the value of the provision for mine closure represents the discounted value of the present obligation to restore, dismantle and close

the mine, the increase in this provision due to the passage of time is recognised as a finance cost. The discount rate used is a pre-tax

rate that reflects the current market assessment of the time value of money and the risks specific to the liability. Foreign exchange

movements are treated as a finance component and recognised in the Consolidated Income Statement.

8 6

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Provision is made for rehabilitation work when the obligation arises, and this is recognised as a cost of production or development. The

Compensation of Key Management Personnel: Compensation by Category

rehabilitation costs provided for are the present value of the estimated costs to restore operating locations. The value of the provision

represents the discounted value of the current estimate to restore and the discount rate used is the pre-tax rate that reflects the current

market assessments of the time value of money and the risks specific to the liability.

Employee benefits

Short-term benefits

Liabilities for short-term benefits, including wages and salaries, and accumulating sick leave expected to be settled within 12 months of

the reporting date are recognised as a current liability in respect of employees’ services up to the reporting date and are measured at the

amounts expected to be paid when the liabilities are settled. Liabilities for non accumulating sick leave are recognised when the leave is

taken and measured at the rates paid or payable.

Long Service Leave

Short-term employee benefits

Post-employment benefits

Share-based payments

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected

future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected

future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted

using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the

NOTE 24. AUDITORS REMUNERATION

The auditor of the Paladin Energy Ltd Group is PricewaterhouseCoopers.

estimated future cash outflows.

Significant Accounting Judgements, Estimates and Assumptions

Environmental rehabilitation provision

The value of this provision represents the discounted value of the present obligation to rehabilitate the mine and to restore, dismantle and

close the mine. The discounted value reflects a combination of management’s assessment of the cost of performing the work required,

the timing of the cash flows and the discount rate. A change in any, or a combination, of the three key assumptions (estimated cash flows,

discount rates or inflation rates), used to determine the provision could have a material impact to the carrying value of the provision.

OTHER NOTES

NOTE 23. KEY MANAGEMENT PERSONNEL

Details of Key Management Personnel

Directors

Mr Cliff Lawrenson

Chairman (Non-Executive)

Mr Peter Watson

Director (Non-Executive)

Mr Peter Main

Director (Non-Executive)

Ms Melissa Holzberger

Director (Non-Executive)

Ms Joanne Palmer

Director (Non-Executive)

Executives

Mr Ian Purdy

Chief Executive Officer

Ms Anna Sudlow

Chief Financial Officer

Mr Jonathon Clements

Senior Vice President - Projects & Development (resigned 31 July 2022)

Mr Jess Oram

Senior Vice President - Exploration (appointed 19 July 2021)

Mr Alex Rybak

Senior Vice President - Business Development & Marketing (appointed 19 July 2021)

Amounts received or due and receivable by
PricewaterhouseCoopers (Australia) for:

Audit or review of the financial report of the consolidated
Group

Other services

Taxation services:

Tax compliance services

Sub-total

Amounts received or due and receivable by related

practices of PricewaterhouseCoopers (Australia) for:

Audit or review of the financial report of subsidiaries and
audit related services

Other services

Taxation services:

Tax compliance services

International tax consulting

Sub-total

Total

2022

US$

2021

US$

1,722,083

981,379

113,444

54,206

892,181

1,957,547

2,727,708

2,993,132

2022

US$

2021

US$

128,598

140,237

—

38,342

27,900

166,940

168,137

28,886

27,965

162

288

264

1,747

450

31,059

28,703

197,999

196,840

8 8

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

NOTE 25. COMMITMENTS AND CONTINGENCIES

There were no outstanding commitments or contingencies, which are not disclosed in the Financial Report of the Group as at 30 June

For the year ended 30 June 2022

NOTE 26. RELATED PARTIES

Key Management Personnel

2022

2021

US$’000

entities are set out in Note 27.

Loans from related parties – LHU’s loans from CNNC (refer to Note 6)

The only related party transactions are with Directors and Key Management Personnel. Refer to Note 23. Details of material-controlled

2022 other than:

Tenements

Commitments for tenements contracted for at the reporting
date but not recognised as liabilities, payable:

Within one year

Later than one year but not later than 5 years

More than 5 years

Total tenements commitment

3,671

681

493

3,802

1,264

Non-Current

At 1 July 2021

Drawdowns

Interest charged

Fair value adjustment to shareholder loan

Accretion expense

At 30 June 2022

These include commitments relating to tenement lease rentals and the minimum expenditure requirements of the Namibian, Canadian,

Western Australian and Queensland Mines Departments attaching to the tenements and are subject to re-negotiation upon expiry of the

Transactions With Related Parties – Purchase of Uranium from CNNC

exploration leases or when application for a mining licence is made.

These are necessary in order to maintain the tenements in which the Group and other parties are involved. All parties are committed to

meet the conditions under which the tenements were granted in accordance with the relevant mining legislation in Namibia, Australia

and Canada.

Purchase of uranium

In relation to the Manyingee Project, the re-negotiated acquisition terms provide for a payment of A$750,000 (US$516,657) (2021:

NOTE 27 . GROUP INFORMATION

A$750,000 (US$564,899)) by the Group to the vendors when all project development approvals are obtained.

Information Relating to Paladin Energy Ltd (Parent)

Other Commitments

Commitments for transport, capital, purchase order commitments, fuel and utilities and other supplies contracted for at the reporting

date but not recognised as liabilities, payable:

Within one year

Later than one year but not later than 5 years

More than 5 years

Total other commitments

Contingent liabilities

2022

2021

US$’000

444

791

517

1,752

145

1,023

558

1,726

There are certain legal claims or potential claims against the Group, the outcome of which cannot be foreseen at present, and for which

Current assets

Total assets

Current liabilities

Total liabilities

Issued capital

Accumulated losses

Option application reserve

Share-based payments reserve

Revaluation reserve

no amounts have been disclosed. It is expected that any liabilities arising from such legal action would not have a material effect on the

Total shareholders’ equity

Group’s financial performance.

Bank Guarantees

Net loss after tax from operations

Total comprehensive loss

2022

2021

US$’000

68,743

102,638

811

3,111

(644)

6,537

—

2,946

(39,759)

2,918

78,558

68,743

2022

2021

Us$’000

4,693

2,973

2022

2021

US$’000

181,285

32,127

253,156

252,854

596

12,345

1,388

11,934

2,645,778

2,489,082

(2,455,032)

(2,813,872)

137

49,928

—

240,811

(10,502)

137

48,042

10,434

266,177

(41,141)

(10,502)

(41,141)

As at 30 June 2022 the Group has outstanding US$112,998 (A$164,032) (2021: US$123,549 (A$164,032)) as a current guarantee

provided by a bank for the corporate office lease; a US$10,333 (A$15,000) (2021: US$11,298 (A$15,000)) guarantee for tenements and a

The financial information for the parent entity has been prepared on the same basis as the consolidated financial statements, except as

US$44,777 (A$65,000) (2021: US$48,958 (A$65,000)) guarantee for corporate credit cards.

set out below.

9 0

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

Investments in subsidiaries, associates and joint venture entities

NOTE 28. EVENTS AFTER THE BALANCE DATE

Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of Paladin Energy

Other than disclosed below, since the end of the financial year, the Directors are not aware of any other matter or circumstance not

Ltd. Dividends received from associates are recognised in the parent entity’s profit or loss when its right to receive the dividend is

otherwise dealt with in this report, that has significantly or may significantly affect the operations of the Group, the results of those

established.

operations or the state of affairs of the Group in subsequent periods with the exception of the following, the financial effects of which

Details of Any Contingent Liabilities of the Parent Entity

have not been provided for in the 30 June 2022 Financial Report:

Paladin has recognised a provision of US$40,407,000 (30 June 2021: US$42,073,000) for the LHM environmental rehabilitation.

On 19 July 2022 Paladin announced the decision to return the Langer Heinrich Mine, located in Namibia, to production.

Tax Consolidation

Paladin and its 100% owned Australian resident subsidiaries formed a tax consolidated group (the Group) with effect from 1 July 2003.

Paladin is the head entity of the Group. Members of the Group have entered into a tax-sharing agreement that provides that the head

entity will be liable for all taxes payable by the Group from the consolidation date. The parties have agreed to apportion the head entity’s

taxation liability within the Group based on each contributing member’s share of the Group’s taxable income and losses.

Investments in Material Controlled Entities

NAME

COUNTRY OF
INCORPORATION

PERCENTAGE

INTEREST HELD

Paladin Energy Minerals NL

Langer Heinrich Mauritius Holdings Ltd1

Langer Heinrich Uranium (Pty) Ltd

Valhalla Uranium Pty Ltd

Summit Resources Ltd

Summit Resources (Aust) Pty Ltd

Paladin Energy Canada Ltd2

Michelin Uranium Ltd2

Paladin Canada Investment (NL) Ltd2

Paladin Canada Holdings (NL) Ltd2

2022

100

—

Australia

Mauritius

Namibia

Australia

Canada

Aurora Energy Ltd2 3

Canada

100

2021

100

1 Langer Heinrich Mauritius Holdings Ltd owns 100% of Langer Heinrich Uranium (Pty) Ltd.
2On 1 July 2021, the five Canadian entities were amalgamated into one entity, Aurora Energy Ltd.
3Aurora Energy Ltd equity accounts a 70% interest (FY21: 65%) in a special purpose joint venture (the Michelin Joint Venture) which owns the Michelin Project in Canada. The Mi-
chelin Joint Venture includes a farm out agreement over a five-year period whereby Paladin will receive an additional 5% participating interest in the Michelin Project on an annual
basis until May 2023, in return for Paladin funding all obligations for the Michelin Project over this period.

All investments comprise ordinary shares and all shares held are unquoted.

The decision to restart production at the Langer Heinrich Mine is supported by strong uranium market fundamentals and continued

progress on uranium marketing activities including the execution of a binding contract for the previously announced Tender Award.

Total restart capital expenditure has increased to US$118M on a 100% project basis, (previous guidance of US$87M), primarily driven

by recent inflationary pressures across the project supply chain, brought forward power and water infrastructure works and increased

owners team costs. Paladin has committed to provide 100% project funding via priority loans to be repaid in priority to all outstanding

shareholder loans.

With US$177.1M in unrestricted cash as at 30 June 2022, Paladin is well positioned to deliver first production from the Langer Heinrich

Mine, pursue further uranium marketing activities and advance the global exploration portfolio.

A new mine plan will be developed prior to commencement of Operations, and a full external review will be conducted to update the mine

closure costs using this new mine plan.

NOTE 29. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

Accounting Standards and Interpretations issued but not yet effective

The following Australian Accounting Standards that have recently been issued or amended but are not yet effective are relevant to the

Group but have not been applied by the Group for the annual reporting period ending 30 June 2022:

Reference/ Title

Summary

Application date of
standard*

Application date for
Group*

Narrow scope amendments issued
for AASB 116, AASB 137, AASB 3 and
Annual Improvements made to AASB
1, AASB 9 and AASB 16 (AASB 2020-
3)

The AASB has made

Narrow scope amendments to

• AASB 116 Property, Plant and Equipment in
relation to proceeds before intended use

• AASB 137 Provisions, Contingent Liabilities

and Contingent

• Assets in relation to onerous contracts and the

cost of fulfilling a contract

• AASB 3 Business combinations in relation to

references to the Conceptual Framework, and

• Annual improvements to AASB 16, AASB 1 and

AASB 9.

1 January 2022

1 July 2022

Classification of liabilities as current
or non-current (AASB 2020-1, AASB
2020-6)

The AASB issued a narrow-scope amendment to
AASB 101 Presentation of Financial Statements
to clarify that liabilities are classified as either
current or non-current, depending on the rights
that exist at the end of the reporting period.

* Designates the beginning of the applicable annual reporting period unless otherwise stated.

1 January 2023

1 July 2023

The Group has considered what impact these new Accounting Standards will have on the financial statements, when applied next year,

and have concluded that they will have no material impact.

The Group has elected not to early adopt these new standards or amendments in the financial statements.

For Standards and Interpretations effective from 1 July 2022, it is not expected that the new Standards and Interpretations will significantly

affect the Group’s financial performance.

9 2

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 30 June 2022

DIRECTORS' DECL ARATION
1. In the opinion of the Directors’ of Paladin Energy Ltd:

(a) The consolidated financial statements and notes that are set out on pages 49 to 93, are in accordance with the Corporations

Act 2001, including:

giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its performance for the

financial year ended on that date; and

ii)

complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the

Corporations Regulations 2001.

b) The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 3 to the

Financial Statements.

c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and

payable.

2. This declaration has been made after receiving the declarations required to be made in accordance with section 295A of the

Corporations Act 2001 for the financial year ending 30 June 2022 (section 295A Declarations). The section 295A Declarations have

been made by the Chief Executive Officer, Ian Purdy and the Chief Financial Officer, Anna Sudlow.

Dated at Perth on 25th August 2022

On behalf of the board

_________________________________________

Cliff Lawrenson

Chairman

Independent auditor’s report

To the members of Paladin Energy Ltd

Report on the audit of the financial report

Our opinion

In our opinion:

The accompanying financial report of Paladin Energy Ltd (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:

(a)

giving a true and fair view of the Group's financial position as at 30 June 2022 and of its
financial performance for the year then ended, and

(b)

complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited
The Group financial report comprises:

●
●
●
●
●
●

●

the consolidated statement of financial position as at 30 June 2022
the consolidated statement of comprehensive income for the year then ended
the consolidated statement of changes in equity for the year then ended
the consolidated statement of cash flows for the year then ended
the consolidated income statement for the year then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999
Liability limited by a scheme approved under Professional Standards Legislation.

9 4

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

Our audit approach

Key audit matters

An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.

The Group owns uranium mining and exploration assets in Namibia, Canada and Australia.

Materiality

Audit scope

For the purpose of our audit we used overall Group
materiality of US$4.8 million, which represents
approximately 1% of the Group’s total assets.

We applied this threshold, together with qualitative
considerations, to determine the scope of our audit
and the nature, timing and extent of our audit
procedures and to evaluate the effect of
misstatements on the financial report as a whole.

We chose total assets as the benchmark because the
Group is not currently operating its assets which are
in the care and maintenance or exploration stage.
The use of total assets as a benchmark provides a
level of materiality which, in our view, is appropriate
for the audit having regard to the expected
requirements of users of the Group’s financial report.

We utilised a 1% threshold based on our professional
judgement, noting it is within the range of commonly
acceptable asset-related thresholds in the mining
industry.

Our audit focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.

In establishing the overall approach to the Group
audit, we determined the type of work that needed to
be performed by the group engagement team and by
the component auditor in Namibia operating under
our instruction. We structured our audit as follows:

● The component auditor performed audit

procedures on the financial information of Langer
Heinrich Uranium (Pty) Ltd.

● The Group engagement team performed audit

procedures, as required due to their financial
significance, on the financial information of the
Group’s remaining subsidiaries.

● The Group engagement team and component

auditor had active dialogue throughout the year
through discussions, review of audit working
papers and written instructions and reporting.

Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular
audit procedure is made in that context. We communicated the key audit matters to the Audit and Risk
Committee.

Key audit matter

How our audit addressed the key audit matter

Assessment of impairment indicators for Langer
Heinrich
(Refer to note 4,17 to 20) [US$196,178,000]
The Group performed an assessment for impairment
indicators as required by Australian Accounting
Standards for the Langer Heinrich Cash Generating
Unit (CGU) which is currently in care and
maintenance.
As at 30 June 2022, the US$196,178,000 Namibian
segment non-current assets (comprising property,
plant and equipment, mine properties, exploration and
evaluation and intangible assets) are attributable to
the Langer Heinrich CGU. The Group concluded that
there were no impairment indicators.
This was a key audit matter due to the significant
carrying value of the Group’s Langer Heinrich CGU
and the judgements required and assumptions used
in determining whether there were any impairment
indicators.

Environmental rehabilitation provisions
(Refer to note 22) [US$40,407,000]
As a result of its mining and processing operations,
the Group is obliged to restore and rehabilitate the
environment disturbed by these operations.
Rehabilitation activities are governed by a
combination of legislative and licence requirements.
At 30 June 2022 the consolidated statement of
financial position included provisions for such
obligations of US$40.4 million.
This was a key audit matter given the determination
of these provisions required judgement in the
assessment of the nature and extent of future works
to be performed, the future cost of performing the
works, the timing of when the rehabilitation will take
place and economic assumptions such as the
discount and inflation rates applied to future cash
outflows associated with rehabilitation activities to
bring them to their present value.

We evaluated the Group’s assessment of whether
there were any indicators of asset impairment at
30 June 2022 for the Langer Heinrich CGU.
We applied professional scepticism in our evaluation
of judgements made by the Group and our
procedures included:
●

comparing medium and long term uranium
pricing to external industry forecasts,
comparing resource estimates to the most recent
Langer Heinrich Resource Statement,
comparing foreign exchange and inflation rate
assumptions to current economic forecasts,
● assessing the Group's market capitalisation as

●

an indicator for impairment, and

● assessing the reasonableness of the accounting
policy and method selected is appropriate in light
of the Accounting Standards and circumstances,
and
confirming a consistent methodology for the
assessment of impairment indicators has been
applied.

●

We obtained the Group’s assessment of its
obligations to rehabilitate disturbed areas and the
estimated future cost of that work, which forms the
basis for the environmental rehabilitation provision
calculations (the model) for the Langer Heinrich mine.
We evaluated and tested key assumptions utilised in
this model by performing the following procedures,
amongst others:
●

comparing the rehabilitation costs being
estimated at Langer Heinrich to a management’s
expert assessment of the rehabilitation
obligation,

● examining supporting information for future cost

estimates,

● assessing the timing of work to be performed by
comparison to mine plans and environmental
rehabilitation plans submitted to relevant
authorities, and
considering the appropriateness of the discount
and inflation rates utilised in calculating the
provision by comparing them to current market
consensus rates.

●

9 6

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

Other information

The directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2022 but does not include the financial report
and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.

Report on the remuneration report

Our opinion on the remuneration report

We have audited the remuneration report included in pages 36 to 44 of the directors’ report for the year
ended 30 June 2022.

In our opinion, the remuneration report of Paladin Energy Ltd for the year ended 30 June 2022 complies
with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.

PricewaterhouseCoopers

Justin Carroll
Partner

Perth
25 August 2022

9 8

99
9 9

PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

ADDITIONAL INFORMATION
Pursuant to the Listing Requirements of ASX as at 22 August 2022.

1. Distribution and number of holders

ADDITIONAL INFORMATION
Pursuant to the Listing Requirements of ASX as at 22 August 2022.

Holder

Total Holders

No . of Shares

SACHEM COVE SPECIAL OPPORTUNITIES FUND LP

Range

1,001

5,001

10,001

100,001

—

1,000

5,000

10,000

100,000

maximum

3,367

6,301

2,996

5,911

956

1,726,091

16,416,675

22,796,018

182,565,932

2,754,274,286

XUE INVESTMENTS PTY LIMITED

EGP CONSULTING PTY LTD

MCNEIL NOMINEES PTY LIMITED

No . of Shares

9,518,223

8,881,636

8,750,000

8,147,782

0.32

0.30

0.29

0.27

2,432,016,398

81.67

Substantial shareholders as disclosed in substantial shareholder notices given to the Company are as follows:

19,531

2,977,779,002

Tembo Capital Mining Fund II LP and related entities

2,298 shareholders hold less than a marketable parcel of shares.

2. The twenty largest shareholders hold 81.67% of the total shares issued

Holder

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

CITICORP NOMINEES PTY LIMITED

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED

NDOVU CAPITAL XII B V

BNP PARIBAS NOMINEES PTY LTD

BNP PARIBAS NOMS PTY LTD

NATIONAL NOMINEES LIMITED

MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED

No . of Shares

607,573,494

470,388,790

290,733,000

261,589,744

172,762,352

144,140,752

106,187,399

62,330,587

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

54,267,994

HOPU CLEAN ENERGY (SINGAPORE) PTE LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2

WASHINGTON H SOUL PATTINSON & CO LTD

BNP PARIBAS NOMS PTY LTD

BNP PARIBAS NOMINEES PTY LTD

54,172,072

52,976,966

38,213,577

29,753,178

22,500,000

16,726,659

12,402,193

20.40

15.80

9.76

8.78

5.80

4.84

3.57

2.09

1.82

1.78

1.28

1.00

0.76

0.56

0.42

Paradice Investment Management Pty Ltd

3. Voting Rights

Ordinary Shares

For all shares, voting rights are one vote per member on a show of hands and one vote per share in a poll.

Share Appreciation Rights

There are no voting rights attached to Share Appreciation Rights.

Performance Rights

There are no voting rights attached to Performance Rights.

4. Securities Subject to Voluntary Escrow

During the reporting period ended 30 June 2022, there were 57,000,000 ordinary shares that were subject to voluntary escrow.

Each tranche of ordinary shares subject to voluntary escrow were released from escrow on 7 December 2021, 11 January 2022, 2

March 2022 and 13 May 2022.

5. Unquoted securities

Unlisted Share Appreciation Rights

The Company has 4,050,250 Share Appreciation Rights on issue, issued in accordance with the Share Rights Plan approved by

shareholders. The number of beneficial holders of share appreciation rights totals 12.

Unlisted Performance Rights

The Company has 9,275,639 Performance Rights on issue.

1 0 0

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022ADDITIONAL INFORMATION
Pursuant to the Listing Requirements of ASX as at 22 August 2022.

ADDITIONAL INFORMATION
Pursuant to the Listing Requirements of ASX as at 22 August 2022.

TENEMENT INFORMATION REQUIRED BY LISTING RULE 5.20

TENEMENT INFORMATION REQUIRED BY LISTING RULE 5.20 (CONTINUED)

Tenement

022147M

024697M

024995M

025621M

025641M

025649M

025651M

025658M

025675M

025676M

025677M

025678M

025680M

025681M

025932M

Location

NL, Canada

Ownership

70%

Tenement

EPM 11898

EPM 13412

EPM 13413

EPM 13682

EPM 14040

EPM 14233

EPM 14694

EPM 14712

EPM 14821

EPM 14935

EPM 15156

MDL 507

MDL 508

MDL 509

MDL 510

MDL 511

MDL 513

M08/86

M08/87

M08/88

E08/1645

E08/1646

EL 6132

ML 140

ML 172

Location

QLD, Australia

WA, Australia

SA, Australia

Namibia, Africa

Ownership

20%

18%

20%

100%

7.5%

75%

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022Corporate Directory

DIRECTORS

Non-Executive Chairman

Mr Cliff Lawrenson

Non-Executive Directors

Mr Peter Main
Mr Peter Watson
Ms Melissa Holzberger
Ms Joanne Palmer

Chief Executive Officer

Mr Ian Purdy

Company Secretary

Mr Jeremy Ryan

REGISTERED OFFICE

SHARE REGISTRY

INVESTOR REL ATIONS

Level 8, 191 St Georges Terrace
Perth Western Australia 6000
Telephone: (+61 8) 9423 8100
Facsimile: (+61 8) 9381 4978
Email: paladin@paladinenergy.com.au
Web: www.paladinenergy.com.au

Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth Western Australia 6000
Telephone: 1300 850 505 (within Australia) or
(+61 3) 9415 4000 (outside Australia)
Facsimile: (+61 3) 9473 2500

Mr Alex Rybak
Level 8, 191 St Georges Terrace
Perth Western Australia 6000
(PO Box 8062 Cloisters Square PO WA 6850)
Telephone: (+61 8) 9423 8135
Facsimile: (+61 8) 9381 4978
Email: alex.rybak@paladinenergy.com.au

AUDITORS

PricewaterhouseCoopers
125 St Georges Terrace
Perth Western Australia 6000

STOCK EXCHANGE LISTINGS

Australian Securities Exchange
Code: PDN

OTCQX
Code: PALAF

Munich, Berlin, Stuttgart and Frankfurt Stock Exchanges
Code: PUR

Namibian Stock Exchange
Code: NM-PDN

The annual report covers the Group consisting of Paladin Energy Ltd
(referred throughout as the Company or Paladin) and its controlled
entities (the Group).

Paladin Energy Ltd is a company limited by shares, incorporated and
domiciled in Australia.

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 are available on our website www.paladinenergy.com.au.

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PALADIN ENERGY LTD: ANNUAL REPORT 2022PALADIN ENERGY LTD: ANNUAL REPORT 2022

Level 8, 191 St Georges Terrace
Perth Western Australia 6000
Telephone: (+61 8) 9423 8100
Facsimile: (+61 8) 9381 4978

Email: paladin@paladinenergy.com.au
Web: www.paladinenergy.com.au