Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — FY2014 Earnings Presentation
20 slides from Energy Resources Of Australia Ltd. Class A's earnings presentation, Feb 9, 2015
Slide 1: Presentation to the Financial Community: 2014 Full Year Results
For personal use only Presentation to the Financial Community 2014 Full Year Results Andrea Sutton | Chief Executive James May | Chief Financial Officer 9 February 2015 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 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 w
Slide 4: Agenda
Agenda For personal use only • Business objectives and highlights • Safety • People and diversity • Market outlook • Ranger 3 Deeps • Operational performance • Financial performance • Progressive rehabilitation • Stakeholder engagement • Summary 4 www.energyres.com.au
Slide 5: Continuing to deliver on our business objectives
Continuing to deliver on our business objectives For personal use only ERA’s aim is to maximise shareholder value while preparing for a future as an underground miner with a significantly smaller environmental footprint, contributing to the global energy market and local community Business Objective
Slide 6: Safety improvement program underway
Safety improvement program underway For personal use only Focus on health and safety leadership, critical risk management and process safety improvement 5 Frequency rate (per 200,000 hrs worked) 4.5 4 3.5 AIFR LTIFR 3 2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • Challen
Slide 7: People and diversity
People and diversity For personal use only ERA continues to be a major employer in West Arnhem region 31 December 2014 31 December 2013 Total number of employees 390 519 Indigenous employees Total 47 79 Percentage 12% 16% Female employees Total 69 96 Percentage 18% 18% Apprentices and trainees • 9 a
Slide 8: Uranium market
Uranium market For personal use only Market fundamentals support long term price recovery • Market sentiment driven by nuclear plans – Restart of the two Kyushu Electric Power Company reactors in Japan expected in first half after meeting all the regulatory approval processes – In November 2014 Chin
Slide 9: Key economic trends
Key economic trends For personal use only ERA is favourably exposed to a projected recovery in the uranium price, a weaker Australian dollar and lower oil prices Uranium oxide spot price forecast • Strong leverage to forecast price recovery – US$ / lb (consensus) • Sales strategy has continued to re
Slide 10: Ranger Deeps milestones
Ranger 3 Deeps milestones For personal use only Exploration Decline and Prefeasibility Study drilling program finalised on time and on budget. Draft Environmental Impact Statement public comment period closed • Exploration Decline – Completed on schedule and within budget in the fourth quarter of 20
Slide 11: Ranger Deeps Prefeasibility Study
Ranger 3 Deeps Prefeasibility Study For personal use only Major activities substantially complete. Additional work to be undertaken to optimise the development pathway for the project • Prefeasibility Study outcomes included: – Resource classification, grade and tonnes – Mine planning including prod
Slide 12: Ranger Deeps schedule
Ranger 3 Deeps schedule For personal use only Additional work will be completed in a manner to minimise the impact on the overall project schedule. Ranger 3 Deeps remains subject to regulatory and Board approvals Ranger 3 Deeps Target Status Forecast milestones Regulatory approval for exploration de
Slide 13: Processing plant performance
Processing plant performance For personal use only Ranger processing plant performed well with full milling rates achieved in the third quarter Mill Operation 2014 Ore milled (‘000 tonnes) 1,278 Recovery (%) 81.5 Mill head grade (% uranium oxide) 0.11 Tonnes produced (U3O8 ) 1,165 • Full milling rat
Slide 14: Cash flow performance
Cash flow performance For personal use only Continued focus on cash generation and investment in Ranger 3 Deeps project 2014 • Increased sales revenue Earnings - $ million – Sales volume up 12 per cent, offset by 8 per cent • Net profit/(loss) after tax (188) Sales decrease in average realised price
Slide 15: Earnings variances
Earnings variances For personal use only Earnings variances for full year 2014 compared to full year 2013 Exploration & Evaluation Purchases of U3O8 2013 Net Earnings 2014 Net Earnings Sales exchange Inventory mvmt Raw materials Sales volume Labour costs Depreciation Stat & Corp Tax & other Sales pr
Slide 16: Business improvement
Business improvement For personal use only ERA is focussing on business improvements and cash generation to strengthen the business • Savings of more than $23 million were achieved in 2014. The $150 million target, set for the period 2011 to 2014, was exceeded • Use of technology a key component in
Slide 17: Delivering on rehabilitation
Delivering on rehabilitation For personal use only Continued investment in rehabilitation and delivery of progressive rehabilitation milestones • ERA has invested $378 million in rehabilitation Rehabilitation Milestones Target Status and water management projects since 2012, including: Pit 3 initial
Slide 18: Delivering on rehabilitation continued
Delivering on rehabilitation continued For personal use only Critical tailings and brine management project remains on schedule and on budget • Work to prepare Pit 3 to take tailings from the Tailings Storage Facility (TSF) for final disposal completed in January • First tailings transfer scheduled
Slide 19: Key stakeholder relations
Key stakeholder relations For personal use only ERA is continuing to engage and consult with the Gundjeihmi Aboriginal Corporation on matters of mutual interest • Quarterly Relationship Committee meetings to share information and discuss implementation of commitments under the Ranger Mining Agreemen
Slide 20: Summary
Summary For personal use only • Safety improvement program initiated • The long term outlook for the uranium market shows initial signs of recovery • Ranger 3 Deeps Exploration Decline completed on schedule and on budget • Major activities contributing to the Ranger 3 Deeps Prefeasibility Study subs
Energy Resources of Australia — FY2014 Earnings Presentation on 6ix