Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — H1 2015 Earnings Presentation
16 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jul 31, 2015
Slide 1: Presentation to the Financial Community: 2015 Half Year Results
Presentation to the Financial Community For personal use only 2015 Half Year Results Andrea Sutton | Chief Executive James May | Chief Financial Officer 31 July 2015 www.energyres.com.au
Slide 2: Forward-looking statements
Forward-looking statements This presentation has been prepared by Energy Resources of Australia Ltd (“ERA”) and consists of the slides for a presentation concerning ERA. By reviewing/attending For personal use only this presentation you agree to be bound by the following conditions. Forward-looking
Slide 3: Acknowledgement of Traditional Owners
Acknowledgement of Traditional Owners The operations of Energy Resources of Australia Ltd (ERA) are located on Aboriginal For personal use only land and are surrounded by, but separate from, Kakadu National Park ERA respectfully acknowledges the Mirarr, Traditional Owners of the land on which the Ra
Slide 4: Agenda
Agenda • Business objectives For personal use only • Health and safety • Market outlook • First half 2015 financial performance • First half 2015 operational performance • Ranger 3 Deeps – 2015 status update – Project overview – Extension process • Progressive rehabilitation • Stakeholder engagement
Slide 5: ERA is focused on core business objectives
ERA is focused on core business objectives Business objective 2015 half year outcomes For personal use only Developing a long term resource base on the – Ranger 3 Deeps Prefeasibility Study complete with upgraded Ranger Project Area mineral resource – Decision that Ranger 3 Deeps will not proceed to
Slide 6: Health and safety
Health and safety Demonstrated commitment to the health and safety of our teams, community and environment in which we operate For personal use only 5 4.5 Frequency rate (per 200,000 hrs worked) 4 3.5 AIFR LTIFR 3 2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 • No
Slide 7: Uranium market outlook
Uranium market outlook Long term outlook remains positive For personal use only • Long term fundamentals remain positive with increased focus on low carbon power generation capacity – Currently 66 nuclear power plants under construction globally, KPMG1 estimates nuclear power generating capacity wil
Slide 8: First half financial performance
First half financial performance For personal use only H1 2015 H1 2014 • Increased sales revenue for first half Cash flow - $A million – Achieved an average realised price of US$49.14/lb in the first • Cash balance at 31 December 293 357 half of 2015, versus an average spot price of US$37.33/lb4 5 •
Slide 9: Improvement in pre tax earnings
Improvement in pre tax earnings • Pre tax results For personal use only H1 2015 H1 2014 – Improvement of first half pre tax results Earnings - $A million was driven by a combination of higher • Net profit/(loss) before tax (59) (191) sales price, favourable exchange rates • Net profit/(loss) after t
Slide 10: Operational performance
Operational performance Production guidance for 2015 remains at 1,600 tonnes to 2,200 tonnes For personal use only Mill Operation H1 2015 Ore milled (‘000 tonnes) 1,138 Recovery (%) 81.4 Mill head grade (% U3O8 ) 0.10 Tonnes produced (U3O8 ) 879 000 lbs 1,939 – Mill continued to perform in line with
Slide 11: Ranger Deeps 2015 status update
Ranger 3 Deeps 2015 status update ERA announced that the Ranger 3 Deeps project will not progress to a Final Feasibility Study in the current operating environment For personal use only • The Ranger 3 Deeps Prefeasibility Study was completed in the first half of 2015. On 11 June 2015, the ERA Board
Slide 12: Project overview
Project overview – Mine plans and associated estimates developed using the Prefeasibility Study completed for Ranger 3 Deeps based on the current For personal use only lease tenure (2021) and are subject to a variance of approximately +/- 20 per cent – Further studies at industry Order of Magnitude
Slide 13: Extension process
Extension process • Existing legislation under which ERA operates requires amendment in order to permit ERA to apply For personal use only for an extension beyond 2021 • The following steps are required to be completed in order to obtain extension: – Obtain support from Mirarr Traditional Owners for
Slide 14: Commitment to progressive rehabilitation
Commitment to progressive rehabilitation • Since the start of 2012, ERA has spent $392 million on rehabilitation For personal use only of the Ranger and Jabiluka sites – Estimated rehabilitation spend of $31 million for 2015 – Mill tailings transfer directly to Pit 3 was completed in February 2015 –
Slide 15: Regular engagement with key stakeholders
Regular engagement with key stakeholders • ERA regularly engages with all key stakeholders including the Gundjeihmi Aboriginal For personal use only Corporation on matters of mutual interest • Quarterly Relationship Committee meetings to share information and discuss implementation of commitments un
Slide 16: Summary
Summary Continued focus on environmental protection and the health and safety of all stakeholders For personal use only • • Production of 879 tonnes of uranium oxide in first half of 2015 • Improved cash position of $300 million at 30 June 2015 and no debt • The Ranger 3 Deeps project will not proce
Energy Resources of Australia — H1 2015 Earnings Presentation on 6ix