Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2011 Earnings Presentation
19 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Feb 1, 2012
Slide 1: 2011 Full Year Results
2011 Full Year Results Presentation to the Financial Community For personal use only Rob Atkinson – Chief Executive Steeve Thibeault – Chief Financial Officer 1 February 2012 Los Angeles, USA. 1
Slide 2: 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 t
Slide 3: 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 4: Agenda
Agenda • 2011 Summary For personal use only • Safety • People • Operational performance • Financial overview • Strategic initiatives • Rainfall update • Outlook 4
Slide 5: 2011 Summary
2011 Summary • Record safety performance in a challenging operating environment. For personal use only • 2011 operations and mining activities significantly impacted by extreme weather in the Northern Territory. – Proactive suspension of processing operations from end January to mid June 2011. – Pro
Slide 6: 2011 Summary
2011 Summary For personal use only • Critical business activities – Approval of the Ranger 3 Deeps exploration decline. – Progressed important water management initiatives, including the approval of brine concentrator and the successful completion of a 4 metre Tailings Storage Facility lift. – Expan
Slide 7: Safety
Safety • Throughout challenging conditions in 2011, ERA maintained its strong focus on safety, achieving a world class For personal use only two million hours without a Lost Time Injury (LTI) and an All Injury Frequency Rate (AIFR) of 0.57. • ERA achieved 336 consecutive days without a LTI, a compan
Slide 8: People
People • ERA is a major employer in the West Arnhem region, and one of the leading employers of Indigenous For personal use only people in the Northern Territory. • During 2011, ERA endorsed a new Indigenous Employment Strategy which builds on previous actions to develop a strong Indigenous workforc
Slide 9: Operational performance
Operational performance For personal use only • Plant and mining activities in 2011 were significantly impacted by the extreme weather events in the Northern Territory. • After the proactive suspension of processing operations was lifted in June, the plant has operated at record levels and significa
Slide 10: Financial overview
Financial overview • The 2011 net loss after tax of $154 million is mainly due to the negative adjustment to stockpile inventory For personal use only ($99 million net) following the decision not to proceed with the Ranger Heap Leach Facility Project, the increase in non cash costs ($53 million net)
Slide 11: Net profit after tax
Net profit after tax • 2011 results were materially affected by the lengthy suspension of processing due to severe adverse For personal use only weather, and the significant increase in non-cash costs. 150 83 41 • Mostly due to the purchase of third party material 12 102 ($106m) 100 47 50 AUD $m 1 0
Slide 12: Capital expenditure
Capital expenditure • 2011 sustaining capital expenditure was consistent with 2010, remaining at $12 million. For personal use only • ERA continues its investment in major strategic initiatives including water management. Sustaining Capex 30 26 16 16 20 $ million 12 12 12 10 0 2006 2007 2008 2009 20
Slide 13: Strategic initiatives: Entitlement Offer
Strategic initiatives • Entitlement Offer For personal use only – ERA successfully raised approximately $500 million through an underwritten accelerated renounceable entitlement offer. – This will be used to fund – • Brine Concentrator • Ranger 3 Deeps exploration decline • Ranger 3 Deeps mine evalu
Slide 14: Strategic initiatives: Tailings Storage Facility Lift and exploration
Strategic initiatives For personal use only • Tailing Storage Facility Lift (four metres) – Completed safely, on schedule and on budget in November 2011 – New operating limit of 56.0 metre (wet season) approved by regulators • Exploration – Ranger Project Area Programme – 14,887 metres total drillin
Slide 15: Strategic initiatives: Ranger Deeps exploration decline
Strategic initiatives • Ranger 3 Deeps exploration For personal use only decline – Detailed engineering has been completed. – Box cut/decline contract expected to be awarded mid February 2012. – The first stage of construction is excavation of the box cut and installation of a portal access tunnel s
Slide 16: Strategic initiatives: Brine Concentrator
Strategic initiatives • Brine Concentrator For personal use only – ERA Board approved project 1 February 2012 with estimated project expenditure $220 million. – Study level engineering is completed and detailed engineering has commenced. – Procurement of long lead time equipment well underway. – Sit
Slide 17: Strategic initiatives continued: Business Review
Strategic initiatives continued • Business Review For personal use only – Targeted cumulative cost savings of $150 million in operating cost reductions over the course of the next 3 years. – Work completed to date includes: • successful introduction of seven by seven rosters across the Ranger Operat
Slide 18: Rainfall update as at January 2012
Rainfall update as at 31 January 2012 For personal use only 2800 2400 2000 1600 1200 Rainfall (mm) 800 400 0 01-Oct 01-May 01-Sep 01-Jan 01-Feb 01-Apr 01-Jun 01-Aug 01-Sep 01-Jul 01-Nov 01-Dec 01-Mar Cumulative Rainfall 2006-07 Cumulative Rainfall 2007-08 Cumulative Rainfall 2008-09 Cumulative Rainf
Slide 19: Outlook
Outlook • Uranium industry outlook For personal use only – Short-term market remains subdued as excess supply clears the market. – Longer-term outlook remains positive, as some planned new mines may struggle to enter production. – Market prices expected to rise in the 2014-20 period. • ERA 2012 – Co
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