Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (May 2014)
18 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, May 19, 2014
Slide 1: ASX cover letter: ERA presentation to financial community
Head office Level 3, Energy House, 18-20 Cavenagh St, Darwin NT 0800 GPO Box 2394, Darwin NT 0801, Australia T +61 8 8924 3500 F +61 8 8924 3555 Ranger mine Locked Bag 1, Jabiru NT 0886 Australia T +61 8 8938 1211 F +61 8 8938 1203 www.energyres.com.au ABN 71 008 550 865 A member of the Rio Tinto Gr
Slide 2: ERA update
For personal use only ERA update Andrea Sutton| Chief Executive Steeve Thibeault/James May | Chief Financial Officer May 2014 www.energyres.com.au
Slide 3: Forward-looking statement
Forward-looking statement • 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 4: 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 th
Slide 5: Agenda
Agenda ERA’s Business Objectives For personal use only • • Market Outlook • Financial Focus • Project Development – Ranger 3 Deeps • Operational Management – Safety and People – Processing Plant Update • Stakeholder Engagement • Rehabilitation 4 www.energyres.com.au
Slide 6: ERA business objectives
ERA business objectives To maximise shareholder value while preparing for a future as an underground miner with a For personal use only significantly smaller environmental footprint, contributing to the global energy market and local community. We do this by: • Developing a long term resource base o
Slide 7: Market outlook
Market outlook • Near term outlook continues to be driven by fall in reactor requirements For personal use only – Japanese units not expected to restart until late 2014 – Competition from cheap natural gas has slowed nuclear plants in the US – Drawdown of inventories • Longer term fundamentals stron
Slide 8: Financials
Financials • As of 31 December 2013 For personal use only – $357 million in cash – A total of $127 million savings related to the 2011 Business Review programme has been achieved, on track to save $150 million by end of 2014 • Continued strong focus on cash preservation and reducing costs in light o
Slide 9: Development - Ranger Deeps exploration decline
Development - Ranger 3 Deeps exploration decline • Ranger 3 Deeps exploration decline on schedule For personal use only – As at 30 April 2014, the face position of the decline was 2,147metres from the surface – Underground exploration drilling of resource continues with total 30,820 metres completed
Slide 10: Recent underground drilling results
Recent underground drilling results • Eight additional cross sections completed For personal use only Significant intercepts include: – R3D_8C_007E 23m@0.494% U3O8 from 240 metres – R3D_9C_006 26m@0.402% eU3O8 from 95 metres – R3D_9C_007 27m@0.442% eU3O8 from 98 metres – R3D_9C_011 25m@0.447% eU3O8
Slide 11: Ranger Deeps prefeasibility study
Ranger 3 Deeps prefeasibility study Ranger 3 Deeps Target Status • Ranger 3 Deeps mine Prefeasibility Study For personal use only Forecast milestones to production Regulatory approval for exploration decline granted August 2011 – $57M underground mine Prefeasibility Study Box cut excavation comple
Slide 12: Safety and people
Safety and people 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 (Apr) • People and diversity • Safety – ERA is a major employer in the West Arnhem region – Difficult start to the year: –
Slide 13: Leach Tank No. 1 failure
Leach Tank No. 1 failure – Occurred 7 December 2013 – Joint Northern Territory and Federal – No injured personnel Government joint taskforce For personal use only – Spilled slurry contained within investigation and review process area with no impact on environment • Supply Implications – Independent
Slide 14: Plant readiness for restart
Plant readiness for restart • ERA Board approved restart readiness plan in April For personal use only • Scope of work based on independent expert's recommendations on asset integrity and maintenance • Restart readiness plan has progressed to schedule and allows for progressive ramp up of processing
Slide 15: Community relations
Community relations • Engagement with the Gundjeihmi Aboriginal Corporation, which represents the For personal use only Mirarr Traditional Owners: – Kakadu West Arnhem Social Trust – Implementation of Independent Surface Water Study – Implementation of the Mining Agreement – Minesite Technical Commi
Slide 16: New sales and marketing agreement
New sales and marketing agreement • Current Current marketing structure – agency model ERA Rossing For personal use only – Rio Tinto Uranium acts as agent for fixed annual agency fee RTU as RTU as – Sales contracts are between ERA and customer agent agent – ERA responsible for own logistics Customer
Slide 17: Solid progress on rehabilitation
Solid progress on rehabilitation • Pit 3 initial backfill – 28.5 million tonnes moved out of a total of 30 million tonnes at end of For personal use only April. To be completed in first half • Pit 1 - initial capping of Pit 1 is 70% complete and scheduled for completion this year • Jabiluka pond reh
Slide 18: Summary
Summary • Key development initiatives on budget For personal use only and on schedule – Ranger 3 Deeps exploration decline – Ranger 3 Deeps Prefeasibility Study • Ranger processing plant restart readiness Ranger 3 Deeps exploration decline • Key rehabilitation projects, particularly Pit 3 initial ba
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