Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (April 2013)
19 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, Apr 29, 2013
Slide 1: Cover letter to ASX announcing financial community meetings
Head office Level 10, TIO Centre, 24 Mitchell St, Darwin NT 0800 GPO Box 2394, Darwin NT 0801, Australia T +61 8 8924 3500 F +61 8 8924 3555 Ranger mine Locked Bag 1, Jabiru NT 0886 Australia T +61 8 8938 1211 F +61 8 8938 1203 www.energyres.com.au ABN 71 008 550 865 A member of the Rio Tinto Group
Slide 2: ERA update
ERA update For personal use only Rob Atkinson – Chief Executive Steeve Thibeault – Chief Financial Officer April-May 2013 1
Slide 3: Acknowledge Traditional Owners
Acknowledge 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 which th
Slide 4: Forward-looking statement
Forward-looking statement 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 5: Agenda
Agenda For personal use only • Safety and people • Operations • Water management • Brine Concentrator • Progressive rehabilitation • Ranger 3 Deeps • Mining Agreement • ERA and the region • Market outlook • Financial • Summary 4
Slide 6: Safety and people
Safety and people For personal use only Safety People and diversity – 2013 All Injury Frequency Rate (AIFR) of 0.50 (YTD) – ERA is a major employer in the West Arnhem region – One recordable injury has occurred in 2013. The – 16 per cent indigenous employees employee has made a full recovery and ret
Slide 7: Operations performing well
Operations performing well • Mining For personal use only – Significant progress with the Pit 3 backfill – High mining fleet efficiency – 30 million tonnes of waste rock needs to be backfilled by Q3 2014 – Backfilling is important to prepare Pit 3 as a tailings and brine repository from 2015 • Plant
Slide 8: Water management
Water management For personal use only • The 2012-13 wet season rainfall to date has been approximately 80 per cent of the long term average • ERA’s water management capability and capacity has been greatly improved and is in a strong position to manage extreme weather events • Independent Surface W
Slide 9: Brine Concentrator on budget and schedule
Brine Concentrator on budget and schedule For personal use only • The Brine Concentrator was manufactured and supplied by HPD, a subsidiary of Veolia Water Solutions and Technologies • Hatch Pty Ltd is the EPCM contractor and Downer EDI Limited is undertaking the construction phase of the project •
Slide 10: Progressive rehabilitation
Progressive rehabilitation For personal use only • Rehabilitation provision as at 31 December 2012 is $640 million (discounted) – Pit 3 backfill costs to date slightly lower than originally planned • Work to be performed over 2013-2015 period represents approximately 25 per cent of the total rehabil
Slide 11: Exploration decline on budget and schedule
Ranger 3 Deeps exploration decline on budget and schedule For personal use only • Macmahon Underground Pty Ltd is constructing the exploration decline • The decline construction progressed very well in Q1 2013. At 26 April 2013 the face position of the decline is 715 metres from the surface Undergro
Slide 12: Underground mine study
Ranger 3 Deeps underground mine study • $57 million underground mine Prefeasibility Study approved by the ERA Board. Prefeasibility Study progressing on schedule and within For personal use only budget • On 13 March the Department of Sustainability, Environment, Water, Population and Communities (SE
Slide 13: Underground mine milestones
Ranger 3 Deeps milestones For personal use only Ranger 3 Deeps Target Completed Forecast milestones to production Regulatory approval for exploration decline granted August 2011 Box cut excavation completed October 2012 Decline tunnel construction commences November 2012 Ranger 3 Deeps mine referral
Slide 14: Mining Agreement
Mining Agreement For personal use only • A suite of agreements with the Mirarr Traditional Owners, the Northern Land Council and the Commonwealth Government were executed on 24 January 2013 • Mining Agreement provides a structured approach for ongoing collaboration between the Gundjeihmi Aboriginal
Slide 15: ERA and the Region
ERA and the Region For personal use only • The future of ERA and Jabiru are significantly intertwined • ERA contributes* – − $265 million to Jabiru’s gross regional value (87 per cent) − $273 million to Alligator River Region’s gross regional value (58 per cent) − $580 million to the Northern Territ
Slide 16: Longer term market fundamentals strong
Longer term market fundamentals strong For personal use only • Global economic slowdown and the Fukushima incident resulted in a reduction in prospective nuclear new-build, however long-term growth projections remain strong. • The growth drivers are largely unchanged − Economic growth in developing
Slide 17: Financials
Financials For personal use only • As of 31 December 2012 – ERA had $465 million in cash – ERA achieved a total of $75 million savings related to its 2011 Business Review programme. – ERA on track to save $150 million by end of 2014 • Continued strong focus on cash preservation and reducing costs in
Slide 18: Summary
Summary For personal use only • Continued strong safety and environmental performance • Water management is in a strong position • 2013 production of uranium oxide is expected to be between 2,700 and 3,300 tonnes • ERA will continue to significantly restructure the business to adapt to lower product
Slide 19: Ranger Deep exploration decline
Ranger 3 Deep exploration decline For personal use only ROM stockpiles Brine Concentrator Ranger 3 Deeps exploration decline March 2013 18
Energy Resources of Australia — Investor Presentation (April 2013) on 6ix