Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (June 2007)
14 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, Jun 13, 2007
Slide 1: Energy Resources of Australia Ltd (ERA)
Energy Resources of Australia Ltd (ERA) Chris Salisbury Chief Executive Financial community site visit 13 June 2007 h Acknowledge [raditional Owners Energy Resources of Australia (Ltd) is located on Aboriginal land and is surrounded by, but separate from, Kakadu National Park. ERA respectfully ackno
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains statements which may include predictions as to the future, and which may constitute forwardtooking statements within the meaning of Australian or US securities lay Such statements include, but are not limited to, statements with regard to capacit
Slide 3: Background
Background * World‘’s fourth largest uranium producer *» Operations based in the Northern Territory, Australia * 380 employees ® In 2006 A$43.6m (2005:$40.7m) in net profit after tax and A$74.9m (2005: $33.4m) in operating cash flow *® Rio Tinto owns 68.4% of ERA Safety performance 4m ERA AIFR Alt i
Slide 4: Location
Location Australia Marbalek ys? Sir ig Rach fobituka ie ; RANGER Koongarca | ronation Hil psscsin rota, wee i 4 Bon Lomond Vathatie “Ow, Mory Katte m Angola 1 Yoeiinio onymerc pam @ a BEVERLEY my Bi Honeymoon A dy B Operating Mine Deposit or Prospactive mine —" = City Outline * Background * Current
Slide 5: Enrichment of U3O8 content
Enrichment of U25 content from 0.7% to 3-4% by Manufacturing of rods, pellets and assembii yo an: Reprocessed fuel Conversion of U0, into UF, {also to UO, for CANDU reactors} Extraction of natural U0, rods, pellets and used fuel fuel assemblies + Separation of . components. « Reprocessing of uranium
Slide 6: Concentration of supply
Concentration of supply Uranium supply est. 2006 (tonnes U;O,) Top 10 by country (2006) Top 7 by company (2006) Canada comeoo EE Australia Kazakhstan Top KazAtomProm | share Niger 80%, Areva Russia ERA Namibla Uzbekistan TVEL ukraine | Joss BHP Bitton Ravel Other Source: WNA, Rio Tinto Uraniam data
Slide 7: Uranium spot price
Uranium spot price 160, dO foe 128 4 US$/Ib al 3S ‘68 ‘70 ‘72 ‘74 Source: TradeTecn ‘76 ‘78 ‘80 ‘82 ‘84 ‘86 ‘88 ‘BO ‘92 G4 ‘96 ‘9B ‘OO ‘02 ‘04 ‘D6 [spot price (nominal) — Spot price {real $)] Outline * Background * Market * Exploration * Summary
Slide 8: Ranger mine operations
Ore to waste {million tonnes} 8 ® Process plant throughput capacity of 2.4 % Waste million tonnes per annum 14 124 Ore @ Acid Plant: all sulphuric acid will be Ww N imported commencing 3Q 2007 8 5 ® Storage and management of water is one 4 of the biggest environmental challenges; a 2 water treatment
Slide 9: Force Majeure update
| Force Majeure update *» Declared as a result of heavy rains end of February/early March *® Production impacted by shutdown and high water levels in Pit 3 restricting access to grade *® Sales for 2007 expected to be in line with production. 2007 production is likely to be similar to 2006 production
Slide 10: Uranium sales contracting
Uranium sales contracting Contracting pre-2006 Contracting post-2 Ceilings and floors _ _ . Floors but no ceilings Base escalated with some _ Some base escalated pricing market pricereferencing —_—s«i| Change in - - oo . a markee fi - _— Volume /timing flexibilities _||conditions _* | Volume/timing
Slide 11: Outline
Outline 2 Background 2 Market * Current operations * Summary Cal off grade decrease from Processing of aw grade stockpiias (0.074%) through Source: ERA 0.12% 10 0.08% pactushingrscreening 60 111 oF 5.4 ra an 6 — 609 50 i a: 8 40 $ 3 2 20 s 2 S 20 10 i‘) © ’ s > © @ a oe s rd e & of & & e & & e
Slide 12: Ranger exploration programme
Ranger 3 exploration programme 1a! Pit Design Ranyer 3 Orit notes & 2007 Dritholes (47 Hotes) © 2006 Drilholes (93 holes) Meters aaa ~ Aa a gg Rangers beens Ao aa Nase the Roa | GN an Aaaa a in =. tone meal” \, 2 Bo A ‘pais CP aii Ranger 3 drilling intersects 12
Slide 13: Exploration potential
Exploration potential Ranger 18 East Electromagnetic tarast, drill tested i 2008.9 Mineralised (005015 Ranger 1 Desp: Uiieete Apomaly &- Previous minerajination identities Jabiluka deposit ® One of the largest undeveloped uranium ore-bodies in the world ® Accessed by a shallow underground mine HN ®
Slide 14: Outline
Outline 2 Background 2 Market * Current operations 2 Exploration Summary *® 26 years of uranium mining experience in the Northern Territory ® World’s second largest uranium mine * Ownership of one of the world’s largest undeveloped uranium resources * Additional on-site exploration activity currentl
Energy Resources of Australia — Investor Presentation (June 2007) on 6ix