Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (November 2008)
15 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, Nov 18, 2008
Slide 1: ERA – Positioned for Growth
Energy Resources of Australia Ltd For personal use only ERA – Positioned for Growth Rob Atkinson, Chief Executive Chris Bateman, Chief Financial Officer November 2008 ERA has two adjoining leases on Aboriginal land surrounded by, but separate from, World Heritage Kakadu National Park in the Northern
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: Energy Resources of Australia Ltd
Energy Resources of Australia Ltd • Operations based in the Northern Territory • Almost three decades of uranium mining For personal use only experience at Ranger mine: world’s second largest uranium mine • World class resources with significant expansion opportunities • Remote location in a cultura
Slide 4: Ranger site and uranium extraction process
Ranger Magela Creek Airport Land application For personal use only (irrigation) area Retention pond 1 Pit 3 Constructed wetland filter Retention pond 2 Stockpiles Mill Pit 1 Tailings dam Corridor Creek Land application area 7 Uranium extraction process 8
Slide 5: Uranium fuel cycle
Outline • Company background • Market For personal use only • Expansion and exploration • Operational and financial performance • Summary 9 Uranium fuel cycle Manufacturing Manufacturing of of rods, rods, pellets pellets and and Enrichment Enrichment of of UU235 235 content content fuel fuel assembl
Slide 6: Market Outlook
Market Outlook WNA estimates of supply appear overly bullish with many suppliers failing to meet expectations Uranium demand vs. Supply, m lbs U3O8 For personal use only 400 WNA high case 350 Development projects being delayed 300 WNA reference case 250 (mlbs U3O8) Prospective Supply 200 Planned Sup
Slide 7: Uranium spot prices
Uranium spot prices $150 Spot price Recent Recentprice pricedrivers: drivers: increases fuelled $125 by investors and Price correction as ••Large Largeincreases increasesinin2007 2007 For personal use only speculators investor buying driven drivenby bystrong strongdemand demand dried up including in
Slide 8: Opportunities for further growth
Opportunities for further growth • Further Pit 3 extension targeting approx 8,000 tonnes of contained uranium above current cut-off For personal use only grade • Heap leach facility aimed at 15,000-20,000 tonnes of contained uranium in low grade mineralised material on current stockpiles & in pit ex
Slide 9: Ranger drilling results
Ranger 3 drilling results Long Section Location 11m @ 0.81% from 352m 33m @ 0.31% from 347m 69m @ 0.35% from 256m 8m @ 0.63% from 340m 26m @ 0.46% from 402m 28m @ 0.45% from 384m For personal use only 66m @ 0.31% from 385m 0 0.25 9m @ 0.52% from 430m km 32m @ 0.47% from 385m 24m @ 0.56% from 421m 30
Slide 10: Ranger Deeps long section
Ranger 3 Deeps long section LEGEND Mineralisation For personal use only defined by drilling 0m RL Future exploration target zone -250m RL High grade intersections SE NW -500m RL 250m Long section width ~300m 17m @ 0.72% from 512m 33m @ 0.31% from 347m 69m @ 0.35% from 256m 27m @ 0.36% from 506m 26m
Slide 11: ERA production
ERA production Material moved (million tonnes) Mining 18 16 Waste • Current Ranger 3 pit expected to be mined out 14 Ore in 2012; processing to continue until 2020 12 — Build-up of stockpiled ore for future processing For personal use only 10 8 • Expected to move over 20 million tonnes of 6 material
Slide 12: ERA's sales contract position
ERA’s sales contract position • Contracts are generally: — 3 to 5 years in duration Average realised uranium price — First delivery 2 to 4 yrs after agreement For personal use only US$/lb 40 35.69 • Contracts contain a mixture of 35 pricing mechanisms: 30 — Fixed price/base escalated 25.06 — Linked
Slide 13: Recent projects
Recent projects • Ranger 3 open pit extension — $57 million to enlarge pit shell and increase mining rates approved For personal use only September 2007 — 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 —
Slide 14: Recent projects
Recent projects • New microfiltration/reverse osmosis water treatment plant — $18 million project to increase pond For personal use only water treatment capacity — Increased treatment capacity by over 100% (from 5.5 to 12 mega litres) • Retrofit of existing water treatment plant for process water tr
Slide 15: Summary
Summary • 28 years of uranium mining experience in the Northern Territory of Australia For personal use only • World’s second largest uranium mine • Lease areas contain world class ore bodies, including one of the world’s largest undeveloped resources • 2008 will be another record year for earnings
Energy Resources of Australia — Investor Presentation (November 2008) on 6ix