Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2010 Earnings Presentation
15 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jan 28, 2011
Slide 1: 2010 Full Year Results - Presentation to the Financial Community
2010 Full Year Results Presentation to the Financial Community For personal use only Rob Atkinson – Chief Executive Steeve Thibeault – Chief Financial Officer 28 January 2011 1
Slide 2: Acknowledge Traditional Owners
Acknowledge Traditional Owners For personal use only The mining operations of Energy Resources of Australia Ltd (ERA) are located on Aboriginal land and are surrounded by, but separate from, Kakadu National Park. ERA respectfully acknowledges the Mirarr, Traditional Owners of the land on which the R
Slide 3: Forward-looking statements
Forward-looking statements This presentation has been prepared by Energy Resources of Australia Ltd (“ERA”) and consisting of the slides for a presentation concerning ERA. For personal use only By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-lookin
Slide 4: Agenda
Agenda For personal use only Safety People and community Operational performance Financial performance Water management Outlook 4 2010 Full Year Results
Slide 5: 2010 Summary
2010 Summary For personal use only Record plant performance Ore treated up by 6% Difficult mining conditions Late access to the bottom of the pit Geotechnical issues Average grade at the bottom of the pit, lower than expected Financial results impacted by low production Purchase of material on the s
Slide 6: Safety
Safety All injury frequency rate (AIFR) and lost time injury frequency rate (LTIFR) For personal use only 5 Frequency rate (per 200,000 hrs worked) 4.5 4 • 278 consecutive days without a lost time injury; a company record 3.5 • 1,470,557 hours worked without a lost 3 time injury 2.5 2 AIFR LTIFR 1.5
Slide 7: People and community
People and community For personal use only Indigenous employment 120 20 Ave No. Ind employees % Ind employees 18 99 100 16 86 83 14 80 Per cent of workforce 12 Number 60 54 10 46 46 h 8 40 6 25 4 20 2 0 0 2004 2005 2006 2007 2008 2009 2010 7 2010 Full Year Results
Slide 8: Operational performance
Operational performance For personal use only 2010 2009 Change Material mined (million tonnes) 10.6 19.5 - 46% Ore mined (million tonnes) 1.4 2.2 - 36% Ore treated (million tonnes) 2.4 2.3 + 6% Average mill head grade (%) 0.19 0.26 - 27% Mill recovery (%) 87.2 88.3 - 1% Production drummed– U3O8 - to
Slide 9: Financial overview
Financial overview For personal use only 2010 2009 Change Net profit after tax - $ million 47.0 272.6 - 83% Underlying earnings - $ million 52.8 272.6 - 81% Income - $ million 586.0 780.6 - 25% Revenue from sales of uranium oxide - $ million 572.0 767.8 - 26% Net cash flow - $ million (66.0) 146.8 -
Slide 10: Net profit after tax
Net profit after tax For personal use only 273 26 275 47 225 Purchase of 925 tonnes of material, 653t 62 sold in 2010, 272t held in Inventory AUD $m 175 49 Increased maintenance and projects 125 7 35 75 22 4 3 1 11 47 25 Chge in inventory Royalties Depreciation Other Materials 2009 Price Exchange Pu
Slide 11: Capital expenditure
Capital expenditure For personal use only 180 160 Deferred Stripping 19 Health, Safety & Environment 140 Sustaining 120 Development 53 $ million 100 18 80 60 37 95 40 3 4 10 13 7 12 20 46 38 25 21 21 8 5 2 0 2004 2005 2006 2007 2008 2009 2010 11 2010 Full Year Results
Slide 12: Temporary suspension of milling operations
Temporary suspension of milling operations For personal use only On 28 January 2011 ERA will commence an orderly suspension of plant processing operations, for a period of 12 weeks as a precautionary measure to ensure that levels in the Tailings Storage Facility (TSF) remain below the authorised ope
Slide 13: Development projects and exploration
Development projects and exploration For personal use only Heap Leach • 15,000 to 20,000 tonnes of Uranium Oxide contained in low grade material stockpiles • Heap Leach facility feasibility continuing • Environmental Impact Statement submission in the first half of 2011 Ranger 3 Deeps • Ranger 3 Dee
Slide 14: Outlook
Outlook For personal use only 2011 • 2011 production of uranium oxide expected to be at a similar level to 2010 • Sales commitments are around 4,500 tonnes • The supply shortfall due to the suspension of processing will be covered by way of inventory management, swaps and loans. • Approximately 450
Slide 15: 2010 a challenging year
2010 a challenging year For personal use only Record plant performance Difficult mining conditions Financial results impacted by low production, due primarily to grade Strategic projects continuing (Heap Leach, R3D) The environment has remained protected 15 2010 Full Year Results
Energy Resources of Australia — FY2010 Earnings Presentation on 6ix