Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Merrill Lynch Conference, Miami 2008
28 slides from Energy Resources Of Australia Ltd. Class A's conference presentation, May 14, 2008
Slide 1: ERA – Positioned to Meet Demand
For personal use only Energy Resources of Australia Ltd (ERA) ERA – Positioned to Meet Demand Chris Salisbury Chief Executive May 2008
Slide 2: Acknowledgement
Acknowledgement For personal use only ERA has two adjoining leases on Aboriginal land surrounded by, but separate from, World Heritage Kakadu National Park in the Northern Territory of Australia ERA respectfully acknowledges the Mirarr, Traditional Owners of the land on which the leases (and Ranger
Slide 3: Forward Looking Statements
Forward Looking Statements For personal use only 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, statemen
Slide 4: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 5: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 6: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 7: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 8: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 9: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 10: Outline
Outline For personal use only • Who we are • Financial and operational performance • Sales contracts • Expansion and exploration • Sustainable development • Summary
Slide 11: Energy Resources of Australia
Energy Resources of Australia For personal use only • Operations based in the Northern Territory, Australia • 28 years of uranium mining experience at Ranger mine: world’s second largest uranium mine • World class resources with significant expansion opportunities • Remote location in a culturally s
Slide 12: Australian Uranium Deposits
Australian Uranium Deposits For personal use only JABILUKA 2 Timor Sea ) ))) RANGER NO.3 Deposits with 10k to 50k tonne U3O8 KOONGARRA Coral Sea ) Deposits with 50k to 100k tonnes U3O8 ) Deposits with 100k to million tonnes of U3O8 ) VALHALLA ) Deposits with more than 1 million tonnes of U3O8 ) KINT
Slide 13: ERA Leases
ERA Leases For personal use only Scale: 10 kilometres Scale: 10 Kilometres
Slide 14: Safety
Safety worked only All Injury and Lost Time Frequency Rates 6 use 5 per 200,000 hours personal 4 3 2 ForInjuries 1 0 2004 2005 2006 2007 AIFR LTIFR Mineral Industry TIFR
Slide 15: Record Results in 2007
Record Results in 2007 For personal use only 2007 2006 Change Net profit (A$ Million) 76 44 +74% Revenue (A$ Million) 362 317 +14% Average realised price (US$/lb) 25.06 18.36 +36% Production U308 (tonnes) 5,412 4,748 +14%
Slide 16: Operational Performance
Operational Performance For personal use only Ore to waste (million tonnes) 18 16 Waste 14 Ore • Process plant throughput capacity of 12 2.4 million tonnes per annum 10 8 • All sulphuric acid imported from 3Q 6 2007 4 2 • Mining due to cease in 2012, 0 processing life out to 2020 '02 '03 '04 '05 '06
Slide 17: Sales Contracts
Sales Contracts For personal use only • ERA sells uranium under long term Average realised uranium price contracts US$ / lb • Large portfolio of customers 30 • Contracts are generally: 25 25.06 — 3 to 5 years in duration 20 18.36 — first delivery 2 to 4 yrs after 16.00 agreement 15 13.68 11.19 • Con
Slide 18: New Facilities
New Facilities For personal use only Laterite Plant • Treats stockpiled ‘lateritic’ ore • Annual U3O8 production ~ 400 tonnes Radiometric sorting • Radiometric sorting facilitates the upgrading & processing of lower grade ores • Brings forward production of 1,100 tonnes over 4 years • Application co
Slide 19: Pit Extension
Pit 3 Extension For personal use only ERA has recently commenced an extension to the Ranger operating pit following a detailed feasibility study • extension contains 54.5 Mt of material and has extended mine life to 2012 • an additional 4,857 tonnes of uranium (10.7 Mlbs) added to reserves (majority
Slide 20: Ranger Flyover
For personal use only Ranger Flyover
Slide 21: Ranger Expansion Options
Ranger Expansion Options For personal use only Statutory & Regulatory Approvals Traditional Owners Hydrometallurgy- Water & Tailings processing plant Organization & Resources Comminution Heap Leach facility Various open pit extensions 10000tpa Multiple mining rates options 9000tpa Mining Rate 6500tp
Slide 22: Extensions to Orebody
Extensions to Orebody 3 For personal use only Shell 12 Shell 50 Source: ERA Jan 08 Pit, Shell 50, Ore @ 0.08% cut-off
Slide 23: Reserves and Resources
Reserves and Resources For personal use only Ranger 3 Ore - MT % U3O8 Contained U3O8 - tonnes Reserves1 32.11 0.15 49,671 Resources2 42.39 0.12 50,567 Jabiluka Ore - MT % U3O8 Contained U3O8 - tonnes Reserves3 11.80 0.50 59,000 Resources3 15.18 0.50 76,403 • In addition to resources, Ranger has appr
Slide 24: Preliminary Heap Leach Results
Preliminary Heap Leach Results For personal use only 100 90 80 70 U3O8 Extraction (%) 60 50 40 30 20 10 0 0 65 Leach Duration (days) n
Slide 25: Significant Exploration Pipeline
Significant Exploration Pipeline For personal use only • Ore shown to extend to >400m depth • Numerous targets untested at depth • Historical drill results encouraging • Trial seismic survey program for drill targeting 1km 1km 1km
Slide 26: Sustainable Development
Sustainable Development For personal use only ERA is committed to developing its resources responsibly & sustainably with an understanding of, and respect for, social, cultural & environmental consequences • Health and Safety of our people • Protection of the environment and other world heritage val
Slide 27: Summary
Summary For personal use only • 28 years of uranium mining experience in the Northern Territory of Australia • World’s second largest uranium mine • Lease areas contain world class ore bodies, including one of world’s largest undeveloped resource • 2007 was a year of record results • Significant exp
Slide 28: For personal use only
For personal use only
Energy Resources of Australia — Merrill Lynch Conference, Miami 2008 on 6ix