Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Non-Deal Roadshow (February 2016)
24 slides from Energy Resources Of Australia Ltd. Class A's roadshow presentation, Feb 11, 2016
Slide 1: Cover letter to Australian Stock Exchange Company Announcements Office
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 Rob Atkinson – Chief Executive Steeve Thibeault – Chief Financial Officer November 2012 1
Slide 3: Acknowledge Traditional Owners
Acknowledge Traditional Owners • 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 the Ranger mine is situa
Slide 4: Forward-looking statement
Forward-looking statement • 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 statements • This pre
Slide 5: Agenda
Agenda • Safety • People • Mining • Plant • Production profile • Water management • Brine Concentrator • Ranger 3 Deeps • Financial update • Market outlook • Summary 4
Slide 6: Safety performance
Safety performance • ERA maintained its very strong focus on safety and achieved an All Injury Frequency Rate of 0.61 year to date • Five recordable injuries have occurred to date in 2012 – Three Lost Time Injuries (a sprained wrist from an employee slipping in a shower, a strained shoulder from an
Slide 7: Our people
Our people Indigenous employment • ERA is a major employer in the West Arnhem region, and one of the leading employers of Indigenous people in the Northern Territory • As at 31 October – – ERA had 591 employees, which includes 102 Indigenous employees (17%) – 110 female employees work at ERA (19%) •
Slide 8: Mining in Pit 3 will be completed in November 2012
Mining in Pit 3 will be completed in November 2012 • All in-situ reserves have been successfully mined • Mine performance in 2012 has been at a high level • Since dewatering the pit, the Mine team have moved material at an annualised rate of 17.2 million tonnes • There is currently 1.4 million tonne
Slide 9: Stockpiles will be the only source of ore from mid 2013
Stockpiles will be the only source of ore from mid 2013 • The ROM stockpiles will be processed by mid 2013 (purple) • Average grade of all stockpiled ore reserves (excluding Waste ROM) is 0.12% U3O8 • From mid 2013, Ranger operations will ROM only mill low grade ore Ore from existing stockpiles (blu
Slide 10: Ranger production forecast
Ranger production forecast ERA expects to produce between 3,500 to 3,700 tonnes of uranium oxide in 2012 Constant mill rate of 2.0 - 2.4 Mt/pa Post 2016 production is dependent on the outcome of further studies on processing low grade ore and prevailing economic conditions1 Current production foreca
Slide 11: Plant continues to perform strongly
Plant continues to perform strongly • Record levels of plant utilisation, through-put and laterite production • Annual shutdown completed injury free, on time and under budget • Achieved an average 20% reduction in plant operations cash costs per unit since July 2011 • Strong focus to further reduce
Slide 12: Good progress with water management initiatives
Good progress with water management initiatives • Successfully completed Tailings Storage Facility (TSF) 2.3m lift • 200ML/day TSF contingency pumping system installed • 1 GL retention pond constructed, which will provide additional pond water storage capacity • ERA is in a strong position to manage
Slide 13: Brine Concentrator on schedule and budget
Brine Concentrator on schedule and budget • ERA Board approved the project on 1 February 2012 with estimated expenditure of $220 million • The Brine Concentrator is being provided by HPD LLC, a subsidiary of Veolia Water Solutions and Technologies • Site works on schedule and major components have a
Slide 14: Ranger 3 Deeps projects on schedule
Ranger 3 Deeps projects on schedule Ranger 3 Deeps Date Indicative milestones to production Regulatory approval for exploration decline granted Commenced box cut excavation Decline tunnel construction commences Ranger 3 Deeps mine referral January 20131 submitted to government Exploration drilling s
Slide 15: Ranger 3 Deeps exploration decline tunnel underway
Ranger 3 Deeps exploration decline tunnel underway Commencement of construction of the underground exploration decline tunnel • The project is on time and on budget • Construction of the decline tunnel commenced in early November and it is expected to be ~100 metres further advanced by the end of De
Slide 16: Exploration update
Exploration update • Exploration drilling since July 2012 – Drilling concentrated at Ranger 18, Ranger 19, and Georgetown • Significant results HOLE ID PROJECT INTERVAL FROM WIDTH GRADE UNIT R19PD52 R19 3 656 5 0.102 Chem Ranger 19 R19PD52 R19 4 667 10 0.243 Chem R19PD52*** R19 1 641 42 0.088 Chem R
Slide 17: Long term market outlook encouraging
Long term market outlook encouraging • Near term market will be challenging – Japan’s slow recovery is expected to keep market quiet in the near term: • Two reactors operating at present time, however limited restarts may occur in near future • It appears unlikely that Japan will be able to replace
Slide 18: Financials
Financials • The rehabilitation provision is currently being reviewed as part of the Integrated Tailings, Water and Closure Prefeasibility Study. The assessment will be disclosed in ERA’s 2012 full year results • In 2012, ERA purchased a total of 500 tonnes of spot material to supply sales commitmen
Slide 19: Strategic focus
Strategic focus • Continue to strengthen relationship with the GAC and Mirarr • Demonstrate successful treatment of water • Commence progressive rehabilitation on key areas on Ranger Project Area • Reduce footprint of our operations • Transition from open pit mining to a potential underground mine •
Slide 20: Summary
Summary • Continued strong safety and environmental performance • Pit 3 ahead of schedule and will be completed in November 2012. Backfilling of Pit 3 will commence in December 2012 • Water management initiatives continue to be successfully implemented • 2012 production of uranium oxide is expected
Slide 21: Strategic project milestones
Strategic project milestones 2012 2013 2014 Project N D J F M A M J J A S O N D J F M A M J J A S O N D Ranger Project Area Exploration Ranger 3 Deeps exploration decline construction Ranger 3 Deeps exploration decline drilling Ranger 3 Deeps mine prefeasibility study Ranger 3 Deeps mine feasibility
Slide 22: Ranger 3 Deeps exploration decline
Ranger 3 Deeps exploration decline Brine Concentrator Ranger 3 Deeps exploration decline 21
Slide 23: Ranger mine
Ranger mine Ranger 3 Deeps exploration decline Brine Concentrator 22
Slide 24: Pit 3
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Energy Resources of Australia — Non-Deal Roadshow (February 2016) on 6ix