Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2015 Earnings Presentation
16 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jan 29, 2016
Slide 1: Presentation to the Financial Community: 2015 Full Year Results
For personal use only Presentation to the Financial Community 2015 Full Year Results Andrea Sutton | Chief Executive James May | Chief Financial Officer 29 January 2016 www.energyres.com.au
Slide 2: Forward-looking statements
Forward-looking statements 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 3: Acknowledgement of Traditional Owners
Acknowledgement of Traditional Owners For personal use only The 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 the Ra
Slide 4: Agenda
Agenda For personal use only • Business objectives • Health and safety • Market outlook • 2015 operational performance • 2015 financial performance • Ore stockpiles reserves upgrade • Strategic review • Progressive rehabilitation • Stakeholder engagement • Summary 4 www.energyres.com.au
Slide 5: Focus on four core business objectives in 2015
Focus on four core business objectives in 2015 For personal use only 2015 business objective 2015 outcomes Operational effectiveness – Produced 2,005 tonnes of uranium oxide – Net cash flow of $72 million – Total cash resources of $433 million1 – Upgrade of Ranger stockpile Ore Reserves to 10,383 to
Slide 6: Health and safety
Health and safety Demonstrated commitment to the health and safety of our teams, community and environment in which we operate For personal use only 5 4.5 Frequency rate (per 200,000 hrs worked) 4 3.5 AIFR LTIFR 3 2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • Four r
Slide 7: Uranium market outlook
Uranium market outlook Short term challenges, but green shoots are emerging and rebalancing is in sight For personal use only M lbs U3O8 Positive demand outlook equivalent Supply/demand balance forecast to 2025 - Japan: restart of two units (Sendai) 250 - China: new build programme continuing 200 -
Slide 8: Operational performance
Operational performance Production guidance for 2016 is 1,900 tonnes to 2,300 tonnes For personal use only Mill Operation 2015 Ore milled (‘000 tonnes) 2,483 Recovery (%) 82.0 Mill head grade (% U3O8 ) 0.10 Tonnes produced (U3O8 ) 2,005 Pounds (000 lbs) produced (U3O8 ) 4,420 – Mill continued to per
Slide 9: Full year financial performance
Full year financial performance Strong financial performance underpinned by focus on cash generation For personal use only 2015 2014 • Strong cash position Cash flow – ($A million) – Positive overall cash flow of $72 million in 2015 • Opening cash balance 293 357 2 • Cash flow generated 120 85 – Cas
Slide 10: 2015 earnings performance
2015 earnings performance Improvement in pre-tax earnings compared to 2014 For personal use only 2015 2014 Earnings ($A million) • Net profit/(loss) before tax (80) (274) • Net profit/(loss) after tax (275) (188) Earnings before interest, tax, depreciation and amortisation 24 (164) Pre-tax earnings
Slide 11: Financial position
Financial position Financial position strengthened in the year For personal use only Balance sheet at 31 December 2015 (A$ million) 2015 2014 • Total cash resources have increased Cash and cash equivalents 365 293 Trade and other receivables 20 11 – Total cash resources strengthened to $433 Inventor
Slide 12: Stockpile Ore Reserves upgrade
Stockpile Ore Reserves upgrade Processing from stockpiled ore can potentially be sustained until late 2020 For personal use only • Stockpile Ore Reserves at Ranger have been increased by 4,177 tonnes U3O8 to 10,383 tonnes. Mined out Pit 3 (Rehabilitation) – Principally due to optimisation of the sto
Slide 13: Strategic review
Strategic review ERA has initiated a strategic review of its business For personal use only ERA’s resources in a global context6 Contained uranium resource of selected deposits 450 Contained U3O8 Resource Tonnes, Thousands • ERA announced a review of its Olympic Dam ERA deposits 400 business followi
Slide 14: Delivering progressive rehabilitation commitments
Delivering progressive rehabilitation commitments For personal use only • $405 million spent on rehabilitation and water • Jabiluka site rehabilitation management projects since 2012 – Revegetation of site now complete. A total of 16,000 saplings – Rehabilitation spend of $27 million in 2015 planted
Slide 15: Regular engagement with key stakeholders
Regular engagement with key stakeholders For personal use only • ERA regularly engages with all key stakeholders, including the Gundjeihmi Aboriginal Corporation, on matters of mutual interest and to share information about ERA’s operations • Relationship Committee meetings with the Mirarr Tradition
Slide 16: Summary
Summary For personal use only • Continued focus on all aspects of health, safety and environment • Long term outlook for the uranium market continues to be positive • Production of 2,005 tonnes of uranium oxide • Cash position improved by $72 million • Processing from stockpiled ore can potentially
Energy Resources of Australia — FY2015 Earnings Presentation on 6ix