Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (June 2010)
30 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, Jun 25, 2010
Slide 1: Rio Tinto Financial community visit – 25 June 2010
Energy Resources of Australia For personal use only Rio Tinto Financial community visit – 25 June 2010 Rob Atkinson - Chief Executive 1
Slide 2: 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. By reviewing/attending this presentation you agree to be bound by the following conditions. For personal use only Forward-lookin
Slide 3: Acknowledge Traditional Owners
Acknowledge Traditional Owners The mining operations of Energy Resources of Australia Ltd (ERA) are located on For personal use only 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 4: ERA overview – geographic region
For personal use only ERA overview – geographic region 4
Slide 5: Presentation overview
For personal use only Presentation overview • Sustainable development • New resources tax • The outlook for uranium • ERA’s current operations and 2009 performance • ERA’s growth opportunities • Ranger operation 5
Slide 6: Safety
Safety All Injury Frequency Rates use only 5 4.5 4.20 rate (per 200,000 hrs worked) 4 3.5 3 2.54 personal 2.5 1.84 2 1.5 For Freqency 1.00 1.01 0.68 1 0.5 0 2004 2005 2006 2007 2008 2009 6
Slide 7: Sustainable development
For personal use only Sustainable development • Nuclear power critical to reducing carbon emissions • ERA provides the fuel for one per cent of world electricity • Strong record of environment protection over 30 years • ERA makes a vital social and economic contribution to the local region • Reached
Slide 8: Uranium – powering the world
Uranium – powering the world ERA’s uranium is used to produce electricity to power these and many other cities: For personal use only Los Angeles Osaka Yokohama Miami 8
Slide 9: Nuclear and greenhouse gas
Nuclear and greenhouse gas • Over one-third of human-induced greenhouse gases come from the burning of fossil fuel to generate electricity. For personal use only • Nuclear energy is among those energy sources producing very low levels of carbon dioxide emissions from their full life cycle. It is clo
Slide 10: ERA economic impact to the Northern Territory
ERA economic impact to the Northern Territory Direct and indirect contribution of A$400 million per annum to the Northern Territory For personal use only economy (based on 2008), this represented 2.8% of the total economy. Since 2005, ERA has reinvested 60% of its net profits into projects at Ranger
Slide 11: New resources tax
For personal use only New resources tax • ERA has no issues with a reform of the Australian tax system, but it should be based on consultation with the Minerals industry and sound principles. It should: • Not adversely affect Australia’s international competitiveness • Be prospective – not apply to
Slide 12: Prices have softened, but long-term outlook very positive
Prices have softened, but long-term outlook very positive $140 only $120 $100 use U O (US$/lb) $80 For personal $60 8 3 $40 $20 $0 7 8 9 7 8 7 9 8 9 0 7 8 9 r-0 r-0 r-0 t-0 t-0 t-0 n-0 n-0 n-0 n-1 l-0 l-0 l-0 Ju Ju Ju Ap Ap Ap Oc Oc Oc Ja Ja Ja Ja Source: Ux Consulting, TradeTech Spot price Long ter
Slide 13: New-build outlook encouraging
New-build outlook encouraging it will take time and some hurdles remain Russia: 31 reactors For personal use only operating in 2008; growth plans have slowed due to economy. USA: 104 reactors operating, 6 to 10 new reactors by 2020? China: latest forecast as much as 86GWe by 2020, up from 75GWe. Wor
Slide 14: ERA has a strong market position
For personal use only ERA has a strong market position • 30 years with a strong and successful brand • Historically the second-largest uranium mine • 5,000+ tpa to existing clients with long-term relationships: • Historically second largest supplier to US market • Contracts with most of the nuclear
Slide 15: ERA financial overview
ERA financial overview 2009 2008 Change For personal use only Net profit after tax - A$ million 272.6 221.8 + 23 % Underlying earnings - A$ million 272.6 119.0 + 129 % Income - A$ million 780.6 691.8 + 13 % Revenue from sales of uranium oxide - A$ million 767.8 495.6 + 55 % Net cash flow - A$ millio
Slide 16: Heap leach facility flow chart
Heap leach facility flow chart ORE STOCKPILE CRUSHING BINDING For personal use only HEAP LEACHING Waste material returned to exhausted Pit Reclaim Irrigate Stack CONCENTRATION Transfer to existing plant URANIUM OXIDE PRODUCTION 16
Slide 17: Heap leach facility project status
For personal use only Heap leach facility project status • ERA Board approval given for the next phase (feasibility study) in October 2009 ($36 million) • Feasibility study commenced 2 November 2009 • The Environmental Impact Statement (EIS) guidelines from the Northern Territory and Commonwealth Go
Slide 18: Heap leach facility – potential layout and location
For personal use only Heap leach facility – potential layout and location 18
Slide 19: Ranger Deeps
Ranger 3 Deeps Perspective to west: One possible location of entrance to exploration decline For personal use only (provisional layout and decline design concept) 19
Slide 20: Ranger Deeps
Ranger 3 Deeps • Adjacent to current Ranger 3 open pit and existing infrastructure For personal use only • ERA’s statement of reserves and resources at Ranger includes around 34,000 tonnes of contained uranium oxide associated with Ranger 3 Deeps • Exploration decline designed with portal outside of
Slide 21: Exploration projects - priorities
Exploration projects - priorities 1. Ranger Orbit For personal use only 2. North Ranger Project Area 3. East Ranger Project Area 21
Slide 22: ERA overview – current operations
For personal use only ERA overview – current operations Trial landform Exploration drilling Ranger 3 Deeps Current mining operations Stockpiles Water treatment plant Pit 1 (mined out) Tailings Dam 22
Slide 23: Mine – Pit
For personal use only Mine – Pit 3 Localised area of instability 23
Slide 24: Ranger uranium extraction process
For personal use only Ranger uranium extraction process 24
Slide 25: Plant operation – Extraction & recovery
Plant operation – Extraction & recovery 96 For personal use only 94 92 90 88 86 84 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 Extraction (%) Recovery (%) 25
Slide 26: Plant Operations - Utilisation
Plant Operations - Utilisation 88% For personal use only 86% 84% 82% 80% 78% 76% 74% 72% 2006 2007 2008 2009 26
Slide 27: Summary ERA
Summary ERA • Uranium market remains robust For personal use only • ERA has reliably supplied uranium oxide for 30 years • Lease areas contain world class ore bodies • Open pit mine will be exhausted by end 2012 • Heap Leach project well advanced • Other exciting development opportunities • Ranger 3
Slide 28: Agenda
Agenda 8:20 Departure Darwin Airport Resort For personal use only 8:30 Check-in, Vincent Aviation 9:00 Departure Darwin – Jabiru 10:15 Mine Pit 3 viewing platform 11:00 Tour operation & site 12:30 Admin. Building – Lunch & Q&A’s 13:30 Departure to Jabiru airport 14:00 Departure Jabiru - Darwin 15:00
Slide 29: Ranger tour
Ranger tour 1 For personal use only 2 3 5 9 4 6 7 8 29
Slide 30: www.energyres.com.au
www.energyres.com.au For personal use only 30
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