Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2012 Earnings Presentation
15 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Feb 1, 2013
Slide 1: 2012 Full Year Results
2012 Full Year Results For personal use only Presentation to the Financial Community Rob Atkinson, Chief Executive Steeve Thibeault – Chief Financial Officer 1 February 2013 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 th
Slide 3: Forward-looking statement
Forward-looking statement For personal use only • 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 this presentation you agree to be bound by the following conditions. Forward-looking
Slide 4: Agenda
Agenda For personal use only • 2012 overview • Safety and people • Operational performance • Financial performance • Rehabilitation provision • Strategic initiatives • 2012 summary 4
Slide 5: 2012 overview
2012 overview • 10 per cent improvement over 2011 in safety performance with an AIFR of 0.52 For personal use only • Very strong operational performance maintained throughout 2012 – Production of 3,710 tonnes of uranium oxide – Record plant throughput of 2.6 million tonnes (primary mill and laterite
Slide 6: 2012 overview
2012 overview • Water management For personal use only – Completed a 2.3 metre lift of Tailings Storage Facility (TSF) and installation of a contingency pumping system providing additional contingency storage in case of heavy rainfall – Constructed a new one gigalitre (one billion litres) pond water
Slide 7: Safety and people
Safety and people For personal use only Safety People and diversity – Record All Injury Frequency Rate (AIFR) of 0.52. A – ERA is a major employer in the West Arnhem region 10 per cent improvement from 2011 – 639 employees and contractors – Five recordable injuries occurred in 2012. All – 17 per cen
Slide 8: Operational performance
Operational performance For personal use only ERA maintained strong operational Mining Operation performance throughout 2012, in mining, – Fully dewatered Pit 3 in May and completed mining in November plant operation and water management – Progressive rehabilitation of Ranger commenced in December w
Slide 9: Financial performance
Financial performance For personal use only 2012 Earning – Non-cash costs of $273 million compared to $153 million in 2011, predominately Earning - $ million related to the depreciation of assets • Net profit/(loss) after tax (219) • Underlying earnings – Achieved an additional $55 million of cash s
Slide 10: Key variances - 2012 versus 2011
Key variances - 2012 versus 2011 • 2012 net loss after tax of $219 million includes a non-cash impairment charge of $68 million versus a net For personal use only loss after tax of $154 million in 2011 which included an inventory adjustment of $99 million (post tax) • In order to provide clear state
Slide 11: Other financials
Other financials For personal use only Non-cash impairment charge – Significant decline of the outlook of both spot and long term prices – Strengthening of the Australian currency outlook – Combined unfavourable impact of $200 million on Ranger fair value – In recent years, significant increase in t
Slide 12: Rehabilitation provision
Rehabilitation provision For personal use only • The Integrated Tailings Water and Closure Prefeasibility Study significantly progressed • Estimate based on the Ranger Environmental Requirements as prescribed in the section 41 Authority: – The rehabilitated area could be incorporated into the Kakadu
Slide 13: Strategic initiatives
Strategic initiatives • Brine Concentrator on schedule and budget For personal use only – Construction of the Brine Concentrator approved by ERA Board in February 2012 – Civil works were completed and all major components were safely delivered to Ranger in December 2012 – Commissioning expected in Q
Slide 14: Strategic initiatives continued
Strategic initiatives continued For personal use only • Integrated Tailings Water and Closure Prefeasibility Study significantly progressed – Developed optimal rehabilitation plan for the Ranger Project Area – Confirmed timing, technology and cost necessary to ensure required standards met • Mining
Slide 15: Summary
Summary • Continued strong safety and environmental performance For personal use only • 2012 loss after tax of $219 million including a non-cash impairment charge of $68 million, mainly due to low market uranium prices and strong Australian foreign exchange outlook. No dividend will be paid • Pit 3
Energy Resources of Australia — FY2012 Earnings Presentation on 6ix