Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — H1 2014 Earnings Presentation
14 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Aug 1, 2014
Slide 1: 2014 half year results
For personal use only 2014 half year results Andrea Sutton | Chief Executive James May | Chief Financial Officer 1 August 2014 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 For personal use only reviewing/attending this presentation you agree to be bound by the following conditions. Forward-looking
Slide 3: Acknowledge Traditional Owners
Acknowledge Traditional Owners • The mining operations of Energy Resources of Australia Ltd (ERA) are located For personal use only 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 th
Slide 4: Agenda
Agenda For personal use only • Business objectives and half year highlights • Safety • Market outlook • Ranger 3 Deeps • Operational performance • Financial performance • Progressive rehabilitation • Summary 4 www.energyres.com.au
Slide 5: Continuing to deliver on our business objectives
Continuing to deliver on our business objectives ERA’s aim is to maximise shareholder value while preparing for a future as an underground miner with For personal use only a significantly smaller environmental footprint, contributing to the global energy market and local community Business Objective
Slide 6: Renewed focus on safety performance
Renewed focus on safety performance 5 For personal use only 4.5 4 Frequency rate (per 200,000 hrs worked) 3.5 3 AIFR LTIFR 2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (H1) • Safety – Challenging period for safety performance: – Four lost time injuries in the 2014 half ye
Slide 7: Near term market conditions remain challenging; longer term fundamentals stronger
Near term market conditions remain challenging; longer term fundamentals stronger • Near term outlook continues to be driven by fall in reactor requirements For personal use only – Spot price at lowest level since 2005, below US$30 per pound – Activity in the term market remains slow – Japanese unce
Slide 8: Exploration decline nearing completion
Ranger 3 Deeps exploration decline nearing completion • Face position 2,221 metres from surface at 30 June 2014 out of a total of 2,765 metres for For personal use only the end of Phase 2 • Underground drilling totalled 38,578 metres at 30 June 2014 Ranger 3 Deeps drill holes - previous (red) and pl
Slide 9: Prefeasibility Study will be completed in late 2014
Prefeasibility Study will be completed in late 2014 Ranger 3 Deeps Target Status • Key developments in first half Forecast milestones to production For personal use only Regulatory approval for exploration decline granted August 2011 – Resource model updated in June 2014 Box cut excavation complet
Slide 10: Restart of Ranger processing plant
Restart of Ranger processing plant H1 2014 • Progressive restart of operations commenced For personal use only Mill operation in June 2014 Ore milled (‘000 tonnes) 46 Recovery (%) 85.2 – A progressive restart of the Ranger processing plant Mill head grade (% uranium oxide) 0.08 commenced on 5 June 2
Slide 11: Focus on cash generation and investment
Focus on cash generation and Ranger 3 Deeps investment H1-2014 • Earnings adversely impacted by Leach Tank failure For personal use only Earnings - $ million • Net profit/(loss) after tax (127.2) Sales – Earnings affected by non-cash impacts of Leach Tank failure • Revenue from sales of uranium oxid
Slide 12: Key earnings variances
Key earnings variances 2014 half year compared to 2013 June half year For personal use only Exploration & Evaluation Purchases of U3O8 2013 Net Earnings 2014 Net Earnings Sales exchange Inventory mvmt Raw materials Sales volume Labour costs Depreciation Tax & other Stat & Corp Sales price Royalties
Slide 13: Making good progress on rehabilitation
Making good progress on rehabilitation • Pit 3 initial backfill nearing completion: 8.3 million tonnes of waste material moved For personal use only during the first half of 2014 taking the total to 31.1 million tonnes at end of June 2014 • Tailings management work progressing on schedule and budget
Slide 14: Summary
Summary • Key development initiatives on schedule and For personal use only on budget – Ranger 3 Deeps exploration decline – Ranger 3 Deeps Prefeasibility Study • Ranger processing plant progressive restart underway – full processing in September quarter Ranger 3 Deeps exploration decline portal • C
Energy Resources of Australia — H1 2014 Earnings Presentation on 6ix