Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (November 2010)
26 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, Nov 3, 2010
Slide 1: ASX cover letter for financial community presentation
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: Operational Update - Australian Financial Community
For personal use only Energy Resources of Australia Ltd Operational Update Australian Financial Community November 2010 1
Slide 3: 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 concerning ERA. By reviewing/attending this presentation you agree to be bound by the following conditions. For personal use only Forward-lookin
Slide 4: 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 the R
Slide 5: Key outcomes in YTD September 2010
Key outcomes in YTD September 2010 For personal use only • Strong safety performance; • Strong plant performance; • Successful completion of the removal of the south wall instability; • Major projects progressing well; • Disappointing mine performance (primarily lower than planned grade). 4
Slide 6: Safety
Safety All injury frequency rate (AIFR) and lost time injury frequency rate (LTIFR) For personal use only 5 4.5 4 Frequency rate (per 200,000 hrs worked) AIFR LTIFR 3.5 3 2.5 2 1.5 1 0.5 0 1 2004 2005 2006 2007 2008 2009 2010 Note: 1 2010 - 12 month rolling ratio 5
Slide 7: People and community
People and community Indigenous employment For personal use only Several reasons for the reduction 120 20 Avg No. Ind. employees • Resignation (Family pressure, other job opportunities) % Ind. employees 18 • Transfers to other Rio Tinto locations 98 100 16 • Attendance issues. 83 83 14 80 Per cent o
Slide 8: Production
Production Comparison 20091 vs 20101 For personal use only PRODUCTION 20091 20101 Change from 1 2009 Actual Actual U3O8 Total T 4,100 2,628 -36% U3O8 Laterite Plant T 71 221 210% U3O8 Primary Plant T 4,029 2,407 -40% Mill Feed Tonnage T 1,660,000 1,845,0002 11% Primary Plant Utilisation % 84.3 87.4
Slide 9: Plant performance - production uranium oxide
Plant performance - production uranium oxide Comparison 20091 vs 20101 For personal use only 5,000 122 4,612 1,984 134 4,500 107 149 4,100 4,000 Tonnes 3,500 3,000 2,628 2,500 2,000 1 20091 Utilisation Mill rate Extraction Other Mill feed 2010 Actual grade Actual Note: 1 Year to date as of September
Slide 10: In-Pit Drilling
In-Pit Drilling Holes Drilled = 38 For personal use only To be drilled = 12 • Drilling expected to be completed by the end of November 2010. • Evaluation will then need to be completed. • Total of 3,000m drilled. • Total of 720m remaining. • Results will be communicated to market. 9
Slide 11: Pit final design
Pit 3 final design Current (as of September 2010) Planned final pit design For personal use only 18 benches to go 3 benches to go 10
Slide 12: Major projects
Major projects Heap leach facility and Ranger 3 Deeps For personal use only Ranger 3 Deeps Heap leach facility 11
Slide 13: Heap leach facility flow diagram
Heap leach facility flow diagram For personal use only 12
Slide 14: Proposed heap leach – plant layout
Proposed heap leach – plant layout • Target 15,000 – 20,000 CORRIDOR CREEK tonnes of U3O8. For personal use only • Planned start date – 2013 (pending approvals). • Process 9 million tonnes of ore per year. SURGE POND OVERLAND CONVEYORS 13
Slide 15: Proposed heap leach – Agglomeration & Conveyors
Proposed heap leach – Agglomeration & Conveyors For personal use only BELT TURN-OVER DUAL CARRY CONVEYOR FEED SIDE RIPIOS SIDE SCRUBBER 14
Slide 16: Proposed heap leach – Process Ponds
Proposed heap leach – Process Ponds For personal use only ACID STORAGE LIME PLANT DILUENT STORAGE WATER STORAGE HEAP LEACH PAD SX PLANT RUN-OFF WATER STORAGE PONDS WORKSHOP AND WAREHOUSE EPCM FACILITY LABORATORY OPERATIONS FACILITY CHANGE HOUSE 15
Slide 17: Proposed heap leach
Proposed heap leach • ERA Board approval given for Feasibility Study (FS) in October 2009 ($36 million) For personal use only • Work continues on the Environmental Impact Statement (EIS) and it is expected to be submitted to the Northern Territory and Commonwealth Governments in Q1 2011. • Key dates
Slide 18: Ranger Deeps
Ranger 3 Deeps For personal use only • Study on the exploration decline has been completed with the development proposal in the final stages of ERA’s approval process. • 10 million tonnes of mineralised material at an average grade of 0.34% uranium oxide. 17
Slide 19: Ranger Deeps portal location and infrastructure
Ranger 3 Deeps portal location and infrastructure For personal use only 18
Slide 20: Indicative production profile post mining
Indicative production profile post mining Current operations (Pit 3 and stockpiles), excluding major projects For personal use only Heap leach - anticipated to produce 15,000 to 20,000 U3O8 OPERATION CEASES IN JANUARY OF 2021 tonnes over a 5-6 year period R3D – Dependant on exploration PIT 3 MINING
Slide 21: Focus on water management
Focus on water management • Construction of Retention Pond 1 seepage interception trench; For personal use only • Upgrade of Retention Pond 1 weir structure; • Construction of Pit 3 rim drain; • Construction of Pit 1 catchment reduction infrastructure; • Process Water Treatment Plant commissioned Oc
Slide 22: Exploration – 2010 Priorities
Exploration – 2010 Priorities Ranger Orbit For personal use only Incorporates prospects: Ranger SE Deeps, Ranger 1 Deeps, Cahill Anomaly 8 & Ranger 18SE. Kombolgie Prospective depth is 200m to 700m Resource Infill drilling in Ranger Pit 3. RPA R18 SE R3 R3 Deep R3 SE Deep Mine Area R1 5km R1 Deep An
Slide 23: Exploration – 2011 Priorities
Exploration – 2011 Priorities 1 Ranger Orbit For personal use only Cahill 2 North RPA Kombolgie Prospective depth is 100m to 600m 3 East RPA RPA Prospective depth is 50m to 600m 2 3 Mine Area 1 5km 22
Slide 24: Cash costs 2009
Cash costs 2009 Consumables For personal use only 10% Lime 18% Manganese 7% Diesel Acid Other process chemicals Maintenance Cost by process 19% 20% Other 18% 18% 5% 21% M ining 15% P ro cessing Site Infrastructure & P o wer Generatio n Explo ratio n & Evaluatio n Ro yalties and o ther sales co sts 3
Slide 25: Challenges and risks facing ERA
Challenges and risks facing ERA • F/x Australian/US exposure (1¢ movement = $5 million1 net profit); For personal use only • Significant weather event; • Results and evaluation of Pit 3 infill drilling programme; • Heap Leach – Environmental Impact Statement approval; • Water management. Note: 1 ave
Slide 26: Summary
Summary • Strong safety performance; For personal use only • Strong plant performance; • Continued focus on Indigenous employment; • Strong focus on environment and water; • Major project studies progressing well; • Infill drilling expected to be complete by end of year; • Water, geotechnical issue
Energy Resources of Australia — Investor Presentation (November 2010) on 6ix