Energy Resources of Australia Ltd. Class A · ASX:ERA
Energy Resources of Australia Ltd. Class A — Investor Presentation (June 2007)
14 slides from Energy Resources of Australia Ltd. Class A's investor presentation, Jun 13, 2007
Slide 1: Energy Resources of Australia Ltd (ERA) – Financial community site visit
Energy Resources of Australia Ltd (ERA) Chris Salisbury Chief Executive Financial community site visit 13 June 2007 Acknowledge Traditional Owners Energy Resources of Australia (Ltd) is located on Aboriginal land and is surrounded by, but separate from, Kakadu National Park. ERA respectfully acknowl
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains statements which may include predictions as to the future, and which may constitute forward-looking statements within the meaning of Australian or US securities laws. Such statements include, but are not limited to, statements with regard to capa
Slide 3: Background and safety performance
Background • World’s fourth largest uranium producer • Operations based in the Northern Territory, Australia • 380 employees • In 2006 A$43.6m (2005:$40.7m) in net profit after tax and A$74.9m (2005: $33.4m) in operating cash flow • Rio Tinto owns 68.4% of ERA 4 Safety performance ERA AIFR All Injur
Slide 4: Location
Location Australia Narb alek DARWIN Jab iluka Rum Jungle RANGER Koongarra Coronation Hill Westmoreland Ben Lomond Northern Valhalla Territory Mary Kathleen Manyingee Kintyre Queensland Western Angela Australia South Yeelirrie Australia BRISBANE BEVERLEY OLYM PIC DAM Honeymoon PERTH SYDNEY Victoria O
Slide 5: Uranium fuel cycle and sources of uranium
Uranium fuel cycle Manufacturing Manufacturing of of rods, rods, pellets pellets and and Enrichment Enrichment ofof U 235 content U235 content fuel fuel assemblies assemblies from from 0.7% 0.7% to to 3–4% 3–4% byby gaseous gaseous diffusion diffusion or or centrifuge Reprocessed fuel centrifuge Re-
Slide 6: Concentration of supply; primary/secondary supply
Concentration of supply Uranium supply est. 2006 (tonnes U3O8) Top 10 by country (2006) Top 7 by company (2006) Canada 11,612 Cameco 9,479 Australia 8,936 6,169 Top 6 KazAtomProm 5,813 Kazakhstan share = Niger 3,674 80% Areva 5,267 Top 8 share = Russia 3,856 ERA 4,748 83% Namibia 3,620 2,676 TVEL 4,
Slide 7: Uranium spot price
Uranium spot price 160 140 120 100 US$/lb 80 60 40 20 0 '68 '70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 Spot price (nominal) Spot price (real $) Source: TradeTech 12 Outline • Background • Market • Current operations • Exploration • Summary 13 7
Slide 8: ERA production and further opportunities
ERA production Ore to waste (million tonnes) 18 • Process plant throughput capacity of 2.4 16 Waste million tonnes per annum 14 12 Ore • Acid Plant: all sulphuric acid will be 10 imported commencing 3Q 2007 8 6 • Storage and management of water is one 4 of the biggest environmental challenges; a 2 w
Slide 9: Force majeure update; ERA's sales contract position
Force majeure update • Declared as a result of heavy rains end of February/early March • Production impacted by shutdown and high water levels in Pit 3 restricting access to grade • Sales for 2007 expected to be in line with production. 2007 production is likely to be similar to 2006 production (~47
Slide 10: Uranium sales contracting; earnings and sales volumes
Uranium sales contracting Contracting pre-2006 Contracting post-2006 Ceilings and floors Floors but no ceilings Base escalated with some Some base escalated pricing market price referencing Change in market Volume / timing flexibilities conditions Volume / timing flexibilities (buyer) (seller) Durat
Slide 11: Ranger reserves
Outline • Background • Market • Current operations • Exploration • Summary 20 Ranger reserves Processing of low Cut off grade grade stockpiles decrease from (0.074%) through 0.12% to 0.08% crushing/screening 60 5.4 11.1 0.7 7.2 6.6 50.9 50 - 43.9 44.5 '000 tonnes U3O8 40 30 20 10 0 t es es ed ed 05
Slide 12: Ranger 3 exploration programme and drilling intersects
Ranger 3 exploration programme Ranger 3 Drill-holes 2007 Drillholes (47 Holes) 2006 Drillholes (93 holes) 0 200 Meters Ranger 3 Deeps Final Pit Design Inside the Road Operations Facilities 22 Ranger 3 drilling intersects 23 12
Slide 13: Exploration potential; Jabiluka deposit
Exploration potential Ranger 18 East Electromagnetic target, drill tested in 2006 - Mineralised Ranger 4.1 - Small lateritic deposit identified Ranger 3 Deeps - R3 ore body extension Radiometric Anomaly U channel anomaly - Untested Ranger 1 Deeps - Conceptual target similar to Ranger 3 - Untested An
Slide 14: Summary
Outline • Background • Market • Current operations • Exploration • Summary 26 Summary • 26 years of uranium mining experience in the Northern Territory • World’s second largest uranium mine • Ownership of one of the world’s largest undeveloped uranium resources • Additional on-site exploration activ
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