Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2018 Earnings Presentation
13 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Feb 13, 2019
Slide 1: 2018 Full Year Results
For personal use only 2018 Full Year Results Additional Information for the Financial Community February 2019 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 The operations of Energy Resources of Australia Ltd (ERA) are located on Aboriginal land For personal use only 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 • Strategic priorities For personal use only • Health and safety • Market outlook • 2018 operational performance • 2018 financial performance • Progressive rehabilitation and feasibility study outcomes • Stakeholder engagement • Summary 4 www.energyres.com.au
Slide 5: Focus on four priorities
Focus on four priorities Near term strategic priority 2018 outcomes For personal use only Continue the progressive rehabilitation – Feasibility Study is now finalised of the Ranger Project Area – Bulk backfill of Pit 1 continued – Continued dredging of the Tailings Storage Facility – Rehabilitation
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 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 – All Injury Frequ
Slide 7: Uranium market outlook
Uranium market outlook Current market weakness is expected to give way to a long-term recovery driven by Asian demand For personal use only Near term outlook is volatile – The uranium spot price has increased with a January 2019 closing spot price of US$28.92 approximately 22% higher than January 20
Slide 8: Operational performance
Operational performance Production guidance for 2019 of between 1,400 tonnes to 1,800 tonnes For personal use only Mill Operation 2018 Ore milled (‘000 tonnes) 2,486 Recovery (%) 86.6 Mill head grade (% U3O8 ) 0.09 Tonnes produced (U3O8 ) 1,999 Pounds (‘000 lbs) produced (U3O8 ) 4,407 – Production w
Slide 9: Full year financial performance
Full year financial performance Ranger continues to generate positive margins from the sale of U3O8 For personal use only 2018 2017 Cash resources decreased in the year Cash flow – ($A million) – ERA continued to generate a positive cash margin from the • Opening cash balance 395 396 production and
Slide 10: 2018 earnings performance
2018 earnings performance Earnings unfavourably impacted by non-cash charges Stable earnings performance before tax, For personal use only 2018 2017 Earnings ($A million) impairment and change in provision • Net profit/(loss) before tax, impairment and rehabilitation 1 (22) • Net profit/(loss) befor
Slide 11: Rehabilitation feasibility study finalised
Rehabilitation feasibility study finalised For personal use only • Feasibility Study finalised – Findings from the feasibility study increase confidence that ERA’s planned rehabilitation strategy will satisfy regulatory obligations, including the January 2026 milestone. – 2018 saw a net increase in
Slide 12: Regular engagement with key stakeholders
Regular engagement with key stakeholders ERA’s operations are located on Aboriginal land, are surrounded by Kakadu National Park and significantly underpin the Alligator River’s regional economy. Regular engagement with key stakeholders is an important, ongoing part of our business. For personal use
Slide 13: Summary
Summary • Continued focus on all aspects of health, safety For personal use only and environment • Production of 1,999 tonnes of uranium oxide • ERA continue to realise a uranium price premium when compared to spot price • Cash flow from uranium oxide sales impacted by a building of inventory for sa
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