Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (May 2010)
15 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, May 5, 2010
Slide 1: Presentation to the Financial Community
For personal use only Presentation to the Financial Community Rob Atkinson – Chief Executive Steeve Thibeault – Chief Financial Officer May 2010
Slide 2: Acknowledge Traditional Owners / Forward looking statements
Acknowledge Traditional Owners 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. For personal use only ERA respectfully acknowledges the Mirarr, Mirarr Traditional Owners of the land on whic
Slide 3: Key achievements in 2009 / Energy Resources of Australia Ltd
Key achievements in 2009 • Record sales • Record underlying earnings and dividends For personal use only • Record safety performance • Environment remains protected • Strengthening St th i community it and d governmentt engagementt relationships l ti hi • Expanding Indigenous employment and training
Slide 4: ERA overview – geographic region
For personal use only ERA overview – geographic region 5 ERA overview – geographic region 6
Slide 5: Safety / People and community
Safety All Injury Frequency Rates 5 4.5 4.20 orked) For personal use only 4 00,000 hrs wo 3.5 3 2.54 Freqenccy rate (per 20 25 2.5 1.84 2 1.5 1.00 1.01 0.68 1 0.5 0 2004 2005 2006 2007 2008 2009 7 People and community Indigenous employment • “…during the year there were no reported incidents 120 20
Slide 6: Economic contribution / Current operations
Economic contribution ERA’s economic contribution to the Northern Territory in 2008 Per cent of gross product at factor cost 3.0% For personal use only 2.5% 2.0% 1.5% 2.8% 1.0% 1 6% 1.6% 0.5% 0.6% 0.6% 0 0% 0.0% Direct Indirect Capital Total Source: ACIL Tasman Economic Impact Report 2009 9 Current
Slide 7: Ten year performance
Ten year performance Year Ended 31 December 2009 2008 2007 2006 2005 20043 2003 20022 20011 2000 Sales Revenue ($000) 768,297 496,359 357,080 312,698 262,036 236,270 196,216 198,703 232,808 181,847 For personal use only Profit After Tax (($000)) 272,574 , 221,785 , 76,089 , 43,607 , 41,066 , 37,046
Slide 8: Sales of uranium oxide / Major projects 2007 - 2009
Sales of uranium oxide 60.00 6,000 50.84 • Contracts are generally: Price 5,800 For personal use only 50.00 Volume • 3 to 5 yyears in duration S a le s v o lu m e (to n n e s ) P ric e (U S $ / p o u n d ) 5,600 • First delivery 2 to 4 yrs after 40.00 32.53 agreement 5,400 30.00 30 00 25.06 • Contra
Slide 9: Heap Leach project status
Heap Leach project status • Targets 15,000 to 20,000 tonnes uranium oxide • ERA Board approval given for the next phase (feasibility study) in October 2009 ($36 million) For personal use only • Feasibilityy studyy commenced 2 November 2009 • The Environmental Impact Statement (EIS) guidelines from t
Slide 10: Heap Leach project / Environmental controls
Heap Leach project Stockpile • Ore is collected from the stockpiles using an excavator and trucks. Crushing • The crushed ore ranges in size from 1mm (fine) to 40mm (coarse). For personal use only • The crushed ore is mixed with diluted acid to bind the fine and the Binding coarse products together.
Slide 11: Ranger Deeps exploration target / Ranger 3 Deeps
For personal use only Ranger 3 Deeps exploration target Pit #3 Future exploration target Estimated current resource Conceptual location of decline 19 Ranger 3 Deeps Adjacent to current Ranger 3 open pit and existing infrastructure ERA’s statement of reserves and resources at Ranger includes around 3
Slide 12: Production profile / Market
Production profile Current pit operation • Accelerated miningg to feed the pplant and stock ppile • Mining to cease at the end of 2012 • The plant will continue operating using stock pile feed, with decreasing grade up to 2020 For personal use only Heap Leach • Construction in 2011-2012 subject to a
Slide 13: Prices have weakened, but long-term outlook remains positive
Prices have weakened, but long-term outlook remains positive $140 $120 $100 For personal use only L-T pprices now b) U3O8 ($/lb $80 fallen below $60 $60 $40 Spot prices below cost of production for many mines (CRU - $43.40) $20 $0 7 8 9 7 8 9 7 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
Slide 14: WNA supply-demand outlook / Summary
WNA supply-demand outlook Some potential for near near-term term over over-supply supply remains marginal marginal. To meet prospective demand a significant number of new projects need to be developed quickly 400 WNA high case 350 For personal use only 300 WNA reference case (M lbs U3O8) 250 Prospec
Slide 15: For personal use only
For personal use only 27
Energy Resources of Australia — Investor Presentation (May 2010) on 6ix