Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — H1 2008 Earnings Presentation
11 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jul 25, 2008
Slide 1: 2008 Half Year Results - Presentation to the Financial Community
Energy Resources of Australia Ltd For personal use only 2008 Half Year Results Presentation to the Financial Community Chris Salisbury – Chief Executive Chris Bateman – Chief Financial Officer 25 July 2008 Acknowledge Traditional Owners Energy Resources of Australia Ltd (ERA) is located on Aborigina
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains statements which may include predictions as to the future, and which may constitute forward-looking statements within the meaning of Australian or US securities laws. Such statements include, but are not limited to, statements with regard to capa
Slide 3: Overview
Overview For personal use only H1 08 H1 07 Change Production U3O8 (tonnes) 2,357 2,496 -5.5% Net profit – A$m 38.9 5.7 +587% Average realised price – US$/lb 35.69 16.90 +111% Interim dividend (cents per share) 8 0 NA 5 Agenda • Overview • Safety performance • Financial overview • Operational perform
Slide 4: Safety performance
Safety performance All Injury and Lost Time Frequency Rates 4.5 AIFR LTIFR Frequency Rate (per 200,000 hrs worked) 4.0 For personal use only 3.5 3.0 2.5 2.0 1.5 1.0 0.5 - 2002 2003 2004 2005 2006 2007 2008 YTD 7 Agenda • Overview • Safety performance • Financial overview • Operational performance •
Slide 5: Financial overview
Financial overview H1 08 H1 07 Results to 30 June 2008 Change A$m A$m For personal use only Revenue 167.4 114.3 +46% Profit before tax 52.7 8.2 +543% Net profit 38.9 5.7 +587% Operating cash flow 99.0 46.6 +112% Capital expenditure 92.8 22.4 +314% 9 H1 2008 v H1 2007 profit 120 100 80 A$'m 60 40 20
Slide 6: Average Realised Price and H1 total costs
Average Realised Price (US$/lb) 40 • Contracts are generally: — 3 to 5 years in duration 35 — First delivery 2 to 4 yrs after agreement For personal use only 30 • Contracts contain a mixture of pricing mechanisms: 25 — Fixed price/base escalated — Linked to market indicators 20 — Negotiated prices 1
Slide 7: H1 2008 v H1 2007 cash flow and capital expenditure
H1 2008 v H1 2007 cash flow 120 100 For personal use only 80 60 A$'m 40 20 0 -20 3.3 94.9 (40.0) (2.4) (70.4) 32.8 (17.2) 0.9 2007 Receipts Payments Tax Paid Capital Borrowings Dividends 2008 Cashflow Cashflow 13 H1 2008 v H1 2007 capital expenditure 80 70 H1 2008 H1 2007 60 50 A$M 40 30 20 10 0 Dev
Slide 8: Operational performance
Agenda • Overview • Safety performance For personal use only • Financial overview • Operational performance • Exploration / expansion projects • Outlook 15 Operational performance 6 mths 08 6 mths 07 Variance Ore mined (tonnes) 1,516,302 1,460,360 +4% Ore milled (tonnes) 1,047,577 958,601 +9% Mill h
Slide 9: Exploration
Agenda • Overview • Safety performance For personal use only • Financial overview • Operational performance • Exploration / expansion projects • Outlook 17 Exploration 18
Slide 10: Ranger Expansion Project
Ranger Expansion Project • The expansion study has confirmed the potential of: — Further Pit 3 extension targeting approx 8,000 tonnes of contained uranium above current cut-off grade For personal use only — Heap Leach facility (10mtpa) – Pilot column tests returned 60-80% recovery in 30-40 days – A
Slide 11: Outlook
Outlook • Full year production is expected to be at normal levels — Full access to pit is available For personal use only • Key capital projects in second half — Completion of radiometric, laterite and mine expansion projects — Further tailings dam lift — New tailings deposition system as pit 1 clos
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