Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Corporate Update (August 2024)
25 slides from Energy Resources Of Australia Ltd. Class A's corporate update, Aug 26, 2024
Slide 1: Business Update Presentation
Business Update Presentation 26 August 2024 1
Slide 2: Important notices
Important notices This presentation has been prepared by Energy Resources of Australia Ltd ABN 71 008 550 865 (ERA or the Ore Reserves and Mineral Resources Reporting Requirements: Investors should note that it is a requirement Company) and contains general information about ERA's activities in summ
Slide 3: Important notices
Important notices To the maximum extent permitted by law, ERA and its directors, officers, employees, agents, associates and advisers disclaim any liability, and make no representation or warranty (express or implied), in relation to the accuracy or completeness of any forward-looking statements con
Slide 4: Acknowledgement of Traditional Owners
Acknowledgement of Traditional Owners The 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 people who are the Traditional Owners of the land on which Ranger mi
Slide 5: Executive summary
Executive summary 5
Slide 6: Executive summary
Executive summary 1 1. Jabiluka update • ERA is disappointed with the Northern Territory Government’s decision to not renew the Jabiluka Mineral Lease (MLN1) based on advice from the Commonwealth Government. On 6 August 2024, ERA commenced proceedings in the Federal Court of Australia (Court) seekin
Slide 7: Executive summary | Jabiluka update
1 Executive summary | Jabiluka update • As announced on 26 July 2024, the Northern Territory Minister for Mining and Minister for Agribusiness and Fisheries (NT Minister) advised ERA that MLN1 will not be renewed based on advice from the Commonwealth Minister for Resources and Minister for Northern
Slide 8: Executive summary | Rehabilitation commitment
2 Executive summary | Rehabilitation commitment • ERA’s strategic priority continues to be the comprehensive rehabilitation of the Ranger Project Area in accordance with its obligations so that it can be incorporated into the surrounding Kakadu National Park if the Mirarr Traditional Owners wish • T
Slide 9: Executive summary | ERA's liquidity position
3 Executive summary | ERA’s liquidity position • ERA’s liquidity position as at 30 June 2024 is as follows: – Approximately $128m of available cash – Zero debt – $126m of bank guarantees – $125m in bank guarantees are held by the Commonwealth as additional security for ERA's Ranger rehabilitation ob
Slide 10: Executive summary | Market Soundings
4 Executive summary | Market Soundings • ERA will conduct an investor sounding process to determine interest in an equity raise to fund rehabilitation activities (Market Soundings) • As part of the Market Soundings, ERA will seek to engage with major shareholders – Rio Tinto, Packer & Co Ltd and Zen
Slide 11: Jabiluka update
Jabiluka update 11
Slide 12: Jabiluka Mineral Lease
Jabiluka Mineral Lease • Jabiluka lease renewal − As announced on 26 July 2024, the NT Minister advised ERA that MLN1 will not be renewed based on advice from the Commonwealth Minister − On 6 August 2024, ERA commenced proceedings in the Federal Court of Australia against the Commonwealth Minister,
Slide 13: Rehabilitation commitment
Rehabilitation commitment 13
Slide 14: ERA is committed to the Ranger Project Area rehabilitation program
ERA is committed to the Ranger Project Area rehabilitation program and is continuing to progress rehabilitation • Ranger commenced production in 1981 and was one of the longest continually operating uranium mines in the world, with production ceasing in January 2021 • The Ranger Project Area is unde
Slide 15: Timeline of rehabilitation work at Ranger
Timeline of rehabilitation work at Ranger Dec-22 Apr-22 Transitioned to a ‘project Pit 3 capping application focused’ model by based on sub-aerial implementing an Oct-23 methodology submitted Integrated Project Receipt of outcomes Feb-19 Jan-21 to stakeholders for Management Team from 2022 Feasibili
Slide 16: Total rehabilitation costs to date
Total rehabilitation costs to date • Since the completion of the 2019 Feasibility Study, ERA has spent approximately $819m on rehabilitation to 30 June 2024(1) Ranger rehabilitation expenditure to date Spend to date(1),(2) ($m, nominal) Pit 3 Initial Capping $220m Water treatment $200m Direct & indi
Slide 17: Outcomes of the 2022 Feasibility Study
Outcomes of the 2022 Feasibility Study • In May 2022 ERA commenced a feasibility study in connection with a lower technical risk rehabilitation methodology (primarily relating to the subaerial (dry) capping of Pit 3) and to further refine the Ranger Project Area rehabilitation execution scope, risks
Slide 18: Rio Tinto appointed to manage the Ranger Rehabilitation Project
Rio Tinto appointed to manage the Ranger Rehabilitation Project • As announced on 3 April 2024, ERA has appointed Rio Tinto to manage the Ranger Rehabilitation Project under a new Management Services Agreement (MSA). The MSA will implement a Rio Tinto-led execution model, though ERA retains the righ
Slide 19: Regulatory matters
Regulatory matters • As previously stated, ERA is not expected to be able to meet its rehabilitation deadline of January 2026 Extension of s 41 • In May 2024, ERA applied for an extension to its section 41 Authority(1). ERA continues to work to progress a new Authority beyond Section 41 Authority (a
Slide 20: Regulatory matters cont'd
Regulatory matters cont'd • As at 30 June 2024, $522m was held in the Ranger Rehabilitation Trust Fund as security • In addition, bank guarantees procured by ERA totalling $125m are held by the Commonwealth as additional security for ERA's Ranger rehabilitation obligations (a further $1m is separate
Slide 21: Overview of Ranger rehabilitation activities planned up until the end of 2027
Overview of Ranger rehabilitation activities planned to be undertaken up until the end of 2027 Indicative cost from : (1,2) 1 July 2024 to 30 1 July 2024 to 31 1 July 2024 to 31 1 July 2024 to 31 Rehabilitation activities and associated expected spend(1) June 2025 December 2025 December 2026 Decembe
Slide 22: Market Soundings
Market Soundings 22
Slide 23: Overview of the Market Soundings process
Overview of the Market Soundings process • ERA will conduct an investor sounding process to determine interest in an equity raise to fund rehabilitation activities Market Soundings (Market Soundings) Process • As part of the Market Soundings, ERA will seek to engage with major shareholders – Rio Tin
Slide 24: Indicative sources and uses of funds
Indicative sources and uses of funds • The Market Soundings have been determined having regard to ERA’s expected Rehabilitation Spend of the Ranger Project Area rehabilitation activities and associated funding gap up until 30 June 2025, 31 December 2025, 31 December 2026 and 31 December 2027(1) 1 Ju
Slide 25: Energy Resources Of Australia
Energy Resources Of Australia
Energy Resources of Australia — Corporate Update (August 2024) on 6ix