Energy Resources of Australia Ltd. Class A · ASX:ERA
Energy Resources of Australia Ltd. Class A — Investor Presentation (August 2006)
8 slides from Energy Resources of Australia Ltd. Class A's investor presentation, August 2006
Slide 1: Investor update: August 2006
Energy Resources of Australia Ltd (ERA) Harry Kenyon-Slaney Chief executive Investor update: August 2006 Forward-Looking Statements This presentation contains statements which may include predictions as to the future. By their nature, forward-looking statements involve risk and uncertainty because t
Slide 2: Overview
Overview • Third largest uranium producer globally – 12% market share • Operations based in Northern Territory, Australia • 380 employees • In 2005 A$40.7m in NPAT and A$33.4m in operating cash flow • First half 2006 A$19.9m in NPAT and A$77.7m in operating cash flow • Owned 68.4% by Rio Tinto 2 Loc
Slide 3: Supply and demand; Global uranium production
Supply and demand 300,000 WNA Ref. & High Demand 250,000 200,000 000lbs U3O8 Secondary Supply 150,000 Non-Western 100,000 Western New 50,000 Western Existing 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: World Nuclear Association, UIC and ERA 4 Global uranium p
Slide 4: Australian uranium exports; Uranium spot price
Australian uranium exports • Key export markets for Australian uranium include USA, Japan and the EU • All production is exported and used for the generation of nuclear electricity • Last year Australia supplied 23 per cent of global production • Three uranium mines in Australia: Ranger, Olympic Dam
Slide 5: ERA's sales contract position; Ranger
ERA’s sales contract position • ERA sells all of its uranium on long term sales contracts Average realised uranium price • Contracts are generally 3 to 5 years US$ / lb in duration 18 16 16.00 15.57 • They reflect mixture of pricing 13.68 mechanisms: 14 • Fixed price/base escalated 12 11.19 10.55 •
Slide 6: Ranger; Jabiluka deposit
Ranger 1 Km 10 Jabiluka deposit • One of the largest undeveloped uranium ore-bodies in the world • Reserves based on a shallow underground mine • Long term care and maintenance agreement signed in early 2005 • Will only be developed with consent of Traditional Owners • Improved dialogue with Traditi
Slide 7: Reserves and resources; Earnings and cash flow
Reserves and resources Grade Contained RANGER* (% U3O8) U3O8(tonnes) Ore reserves 0.20 44,458 Mineral resources 0.14 42,587 Grade Contained JABILUKA** (% U3O8) U3O8(tonnes) Ore reserves 0.52 67,000 Mineral resources 0.46 96,000 * Cut off grade 0.08% U3O8 ** Cut off grade 0.2% U3O8 Source: ERA as at
Slide 8: Challenges and opportunities for ERA
Challenges and opportunities for ERA • Second largest uranium mine in the world. Member of the Rio Tinto Group. • Reserve base remains significant. Cut off grade lowered in October 2005 to 0.08%. • Geological exploration programme accelerating. New targets being assessed. Leases highly prospective.
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