Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — H1 2007 Earnings Presentation
11 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Jul 26, 2007
Slide 1: 2007 Half Year Results – Presentation to the Financial Community
For personal use only Energy Resources of Australia Ltd (ERA) 2007 Half Year Results Presentation to the Financial Community Chris Salisbury - Chief Executive Chris Bateman – Chief Financial Officer Acknowledge Traditional Owners Energy Resources of Australia (Ltd) is located on Aboriginal land and
Slide 2: Forward-looking statements
Forward-looking statements For personal use only 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, statemen
Slide 3: Overview
Overview For personal use only H1 07 H1 06 Change Production U3O8 (tonnes) 2,496 1,988 +26% Net profit – A$m 5.7 19.9 -71% Average realised price – US$/lb 16.90 15.57 +9% Interim dividend (cents per share) 0 6 -100% 4 Agenda • Overview • Safety performance • Financial overview • Operational performa
Slide 4: Safety performance
Safety performance For personal use only Lost Time and All Injury Frequency Rates AIFR LTIFR 4.5 4.0 Frequency Rate (per 200,000 hrs worked) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 - 2001 2002 2003 2004 2005 2006 2007 YTD 6 Agenda • Overview • Safety performance • Financial overview • Operational performance •
Slide 5: Financial overview
Financial overview For personal use only H1 07 H1 06 Results to 30 June 2007 Change A$m A$m Revenue 114.3 154.7 -26% Profit before tax 8.2 30.1 -73% Net profit 5.7 19.9 -71% Operating cash flow 46.6 77.7 -40% Capital expenditure 22.4 24.3 -8% 8 H1 2007 v H1 2006 profit 40 35 30 25 20 15 10 A$'m 5 0
Slide 6: H1 2007 v H1 2006 total costs and cash flow
H1 2007 v H1 2006 total costs For personal use only 135 130 125 120 115 110 105 A$'m 100 95 90 85 80 75 70 124.7 43.2 (7.8) (3.0) (3.1) (3.9) (1.7) 2.4 1.2 (5.5) (1.3) (2.0) 106.1 2006 Invento ry Raw Water Emplo yee Explo ratio n Co nsultants Ro yalties Shipping Depreciatio n B o rro wing Other 2007
Slide 7: H1 2007 v H1 2006 capital expenditure
H1 2007 v H1 2006 capital expenditure For personal use only 10 H1 2007 H1 2006 9 8 7 6 A$M 5 4 3 2 1 0 Development Environment Special Projects Sustain Exploration Safety & Health 12 Agenda • Overview • Safety performance • Financial overview • Operational performance • Exploration / expansion proje
Slide 8: Operational performance
Operational performance For personal use only Q2 07 vs Q2 06 vs Q1 07 6 mths 07 vs 6 mths 06 Ore mined (tonnes) 690,862 +191% -10% 1,460,360 +90% Ore milled (tonnes) 559,298 +70% +40% 958,601 +5% Mill head grade (%) 0.30 +59% +7% 0.29 +22% Mill recovery (%) 88.8 +4% +3% 87.7 +0% Production – U3O8 -
Slide 9: Exploration and expansion projects
Exploration For personal use only Ranger 3 Drill Holes 2007 2006 Current Pit Design Inside the Road Ranger 3 Deeps 0 0.25 Operations Facilities km 16 Expansion projects • Pit 3 Extension — Feasibility study and at extension of Pit 3 targeting 6,100 tonnes of reserves — Study on track for completion
Slide 10: Other opportunities
Other opportunities For personal use only • Technical teams are examining a variety of projects to increase output: — Further expansion of Pit 3 – variety of options being considered — Increase in current processing plant output – Conceptual mill expansion pathway determined — Heap-leach technology
Slide 11: Production outlook
Production outlook For personal use only • ERA declared Force Majeure on its sales contracts as a result of heavy rains at end of February and early March 2007 • The rainfall led to elevated water levels in Pit 3 • ERA has been successful in obtaining approval for, and implementing, a series of meas
Energy Resources of Australia — H1 2007 Earnings Presentation on 6ix