Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2016 Earnings Presentation
13 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jan 31, 2017
Slide 1: 2016 Full Year Results
For personal use only 2016 Full Year Results Additional Information for the Financial Community 31 January 2017 www.energyres.com.au
Slide 2: Forward-looking statements
Forward-looking statements 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 3: Acknowledgement of Traditional Owners
Acknowledgement of Traditional Owners For personal use only The 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 Ra
Slide 4: Agenda
Agenda For personal use only • Strategic priorities • Health and safety • Market outlook • 2016 operational performance • 2016 financial performance • Progressive rehabilitation • Stakeholder engagement • Summary 4 www.energyres.com.au
Slide 5: Focus on three near term strategic priorities
Focus on three near term strategic priorities Three near term priorities determined as an outcome to the strategic review in May 2016 For personal use only Near term strategic priority 2016 outcomes Continue the progressive rehabilitation of the – Completion of laterite capping of Pit 1 Ranger Proje
Slide 6: Health and safety
Health and safety Demonstrated commitment to the health and safety of our teams, community and environment in which we operate For personal use only 5 Frequency rate (per 200,000 4 AIFR LTIFR 3 hrs worked) 2 1 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 – Record safety perform
Slide 7: Uranium market outlook
Uranium market outlook Whilst spot prices weakened throughout 2016, a long term market recovery remains in sight For personal use only Oversupply impacting spot market Cumulative nuclear capacity additions from China, – Market oversupply underpinned deterioration GW (cumulative) Russia, South Korea
Slide 8: Operational performance
Operational performance Production guidance for 2017 of between 2,000 tonnes to 2,400 tonnes For personal use only Mill Operation 2016 Ore milled (‘000 tonnes) 2,728 Recovery (%) 84.9 Mill head grade (% U3O8 ) 0.10 Tonnes produced (U3O8 ) 2,351 Pounds (000 lbs) produced (U3O8 ) 5,183 – Production re
Slide 9: Full year financial performance
Full year financial performance Ranger continues to generate positive cash flow despite industry headwinds For personal use only 2016 2015 • Strong cash position Cash flow – ($A million) – Cash flow generated was $54 million3 from the production • Opening cash balance 365 293 and sale of uranium oxi
Slide 10: 2016 earnings performance
2016 earnings performance Earnings adversely impacted by $231 million non-cash impairment charges in 2016 For personal use only 2016 2015 • Non-cash impairment charge Earnings ($A million) recorded in 2016 • Net profit/(loss) before tax and impairment (40) (80) – Non-cash impairment charge of $231 m
Slide 11: Delivering progressive rehabilitation commitments
Delivering progressive rehabilitation commitments For personal use only • $425 million spent on rehabilitation and water • Feasibility Study planned to commence in 2017 management projects since 2012 – ERA intends to commence a Feasibility Study for the Ranger – Rehabilitation spend of $20 million i
Slide 12: Regular engagement with key stakeholders
Regular engagement with key stakeholders For personal use only ERA’s operations are located on Aboriginal land, are surrounded by Kakadu National Park and significantly underpin the Alligator Rivers regional economy. Regular engagement with key stakeholders is an important, ongoing part of our busin
Slide 13: Summary
Summary For personal use only • Continued focus on all aspects of health, safety and environment • Rebalancing of the uranium market will occur over time • Strategic business review completed in May 2016 • Production of 2,351 tonnes of uranium oxide • Net cash flow for the year of $30 million • Tota
Energy Resources of Australia — FY2016 Earnings Presentation on 6ix