Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — H1 2010 Earnings Presentation
21 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jul 30, 2010
Slide 1: Presentation to the Financial Community: 2010 Half Year Results
Presentation to the Financial For personal use only Community 2010 Half Year Results Rob Atkinson – Chief Executive Steeve Thibeault – Chief Financial Officer 1
Slide 2: Forward-looking statements
Forward-looking statements This presentation has been prepared by Energy Resources of Australia Ltd (“ERA”) and consisting of the slides for a presentation For personal use only concerning ERA. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-lookin
Slide 3: Acknowledgement of Traditional Owners
Acknowledgement of 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 whic
Slide 4: Agenda
Agenda For personal use only • Overview • Our people • Financial overview • Operations performance • Exploration / expansion projects • Outlook 4
Slide 5: Overview
Overview For personal use only H1 10 H1 09 Change Production U3O8 (tonnes) 1,717 2,695 -36% Mill head grade 0.15 0.29 -48% Ore milled (‘000 tonnes) 1,265 1,092 16% Net profit – A$m 23 128 -82% Interim dividend (cents per share) 8c 14c -43% Average realised price – US$/lb 44.79 48.02 -7% 5
Slide 6: Safety performance
Safety performance For personal use only 4.5 AIFR LTIFR 4 Frequency rate (per 200,000 hrs worked) 3.5 3 2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 2010 YTD Note: 2010 YTD represents a 12 month rolling ratio AIFR – All Injury Frequency Rate LTIFR – Lost Time Injury Frequency Rate 6
Slide 7: Indigenous employment
Indigenous employment For personal use only 120 20% Number Percentage 18% 100 16% Average nmber of Indigenous Employees 14% 80 % Indigenous Employees 12% 60 10% 8% 40 6% 4% 20 2% 0 0% 2005 2006 2007 2008 2009 2010 YTD 7
Slide 8: Financial overview
Financial overview For personal use only H1 10 H1 09 Change A$m A$m Revenue 218 347 -37% Profit before tax 31 178 -83% Net profit 23 128 -82% Cash flow from operating (22) 56 -139% activities Capital expenditure1 19 18 +6% Note 1: Includes deferred stripping costs and property, plant and equipment 8
Slide 9: Average realised sales price (US$/lb)
Average realised sales price (US$/Ib) For personal use only 60 50 40 US$/lb 30 20 10 0 2008 H1 2008 H2 2009 H1 2009 H2 2010 H1 9
Slide 10: Sales tonnage (tonnes)
Sales tonnage (tonnes) For personal use only 6000 H2 H1 5000 4000 Tonnes 3000 2000 1000 0 2005 2006 2007 2008 2009 2010 10
Slide 11: Foreign exchange
Foreign exchange For personal use only 2010 2009 H1 H1 Average realised exchange rate 89.1 cents 71.8 cents 24% strengthening of the A$, impacts revenue by approximately $A50 million 1.00 89.1 Cents Ave 0.90 0.80 71.8 Cents Ave 0.70 0.60 0.50 Jan 2009 Jul 2009 Jan 2010 Jul 2010 11
Slide 12: Half year net profit after tax (2010 vs 2009)
Half year net profit after tax (2010 vs 2009) For personal use only 160 120 A$ Million 80 40 0 2009 Sales Price FX on Sales Sales Adj NPAT Cash Costs Evaluation Other 2010 Volume Projects 12
Slide 13: Half year total costs (2010 vs 2009)
Half year total costs (2010 vs 2009) For personal use only 240 200 $A Million 160 120 H1H1 Jun092009 Inv Mvmt Raw Mat Employee Royalties Com & Dep Other H1H1Jun 10 10 costs shipping 13
Slide 14: Half year project expenditure (2010 vs 2009)
Half year project expenditure (2010 vs 2009) For personal use only 20 H1 2010 H1 2009 15 $A Million 10 5 0 Capital Projects Evaluation Projects 14
Slide 15: Operational performance
Operational performance For personal use only H1 2010 H1 2009 Change Material mined 4,334 10,003 -57% (‘000 tonnes) Ore mined 278 990 -72% (‘000 tonnes) Ore milled 1,265 1,092 +16% (‘000 tonnes) Mill head grade (%) 0.15 0.29 -48% Mill recovery (%) 88.9 87.1 +2% Production – U3O8 - tonnes 1,717 2,695
Slide 16: South Wall Material Remaining
South Wall Material Remaining For personal use only Material mined Material still to be mined Approximate area remaining 16
Slide 17: Mine sequencing
Mine sequencing For personal use only • Wider benches • Dewatered pit • Improved access • Increased broken stocks 17
Slide 18: Heap leach facility project status
Heap leach facility project status For personal use only • ERA Board approval given for the next phase (feasibility study) in October 2009 ($36 million) • Feasibility study commenced 2 November 2009 • The Environmental Impact Statement (EIS) guidelines from the Northern Territory and Commonwealth go
Slide 19: Ranger Deeps exploration decline
Ranger 3 Deeps exploration decline For personal use only • Ranger 3 Deeps exploration decline feasibility study approaching completion • Decline to provide underground access to perform close spaced exploration drilling to evaluate the continuity of the resource • Final decision expected in the thir
Slide 20: Ranger exploration decline proposed box cut
Ranger exploration decline proposed box cut For personal use only • Excavate box cut • Extended period of dry weather required 20
Slide 21: Outlook
Outlook For personal use only • 2010 total production between 4,300 and 4,700 tonnes • Sales to be somewhat in excess of 5,000 tonnes • Pressure on revenues from foreign exchange (AUD/USD) • Increase in costs due to development projects • Significant shut to occur in the second half to replace the c
Energy Resources of Australia — H1 2010 Earnings Presentation on 6ix