www.energyres.com.au
ERA – A business update
Andrea Sutton | Chief Executive
20 August 2014
2 www.energyres.com.au
• Energy Resources of Australia Ltd (ERA) respectfully acknowledges the
Larrakia, Traditional Owner...
3 www.energyres.com.au
This presentation has been prepared by Energy Resources of Australia Ltd (“ERA”) and consists of th...
4 www.energyres.com.au
Australian and NT uranium is an important part of
meeting the world’s energy supply
Source: World N...
5 www.energyres.com.au
Near term market conditions are tough; longer term
fundamentals stronger
• Key growth drivers remai...
6 www.energyres.com.au
ERA business objectives
To maximise shareholder value while preparing for a future as an undergroun...
7 www.energyres.com.au
Ranger 3 Deeps exploration decline nearing
completion
• Face position 2,221 metres from surface at ...
8 www.energyres.com.au
Prefeasibility Study will be completed in late 2014
• Key developments in first half
– Resource mod...
9 www.energyres.com.au
Making progress on rehabilitation
Pit 3 July 2014Pit 3 at completion of mining in November 2012
Pit...
10 www.energyres.com.au
Water management
Brine Concentrator Testing of water from Brine Concentrator
Continuous monitoring...
11 www.energyres.com.au
Environmental protection
Ranger Processing Plant
• Independent supervision of Ranger
• Supervising...
12 www.energyres.com.au
Positive economic contribution
Northern
Territory
Alligator Rivers
Region
Jabiru
Direct contributi...
13 www.energyres.com.au
Community support initiatives
• Kakadu West Arnhem Social Trust
– Established in 2013
– Trustee Bo...
14 www.energyres.com.au
The future focus
To maximise shareholder value while preparing for a future as an underground mine...
www.energyres.com.au
ERA – A business update
Andrea Sutton | Chief Executive
20 August 2014
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Andrea Sutton - Energy Resources of Australia - ERA – A Business Update

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Andrea Sutton delivered the presentation at the 2014 Mining the Territory Conference.

With record year on year investment in mining developments and exploration in the Northern Territory, the 8th Annual Mining the Territory Conference is perfectly placed to hear latest information on this booming region.

For more information about the event, please visit: http://bit.ly/MiningtheNT2014

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Andrea Sutton - Energy Resources of Australia - ERA – A Business Update

  1. 1. www.energyres.com.au ERA – A business update Andrea Sutton | Chief Executive 20 August 2014
  2. 2. 2 www.energyres.com.au • Energy Resources of Australia Ltd (ERA) respectfully acknowledges the Larrakia, Traditional Owners of the land on which we meet today • The mining operations of ERA are located on Aboriginal land and are surrounded by, but separate from, Kakadu National Park • ERA also respectfully acknowledges the Mirarr, Traditional Owners of the land on which the Ranger mine is situated Acknowledgement of the Traditional Owners
  3. 3. 3 www.energyres.com.au 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 statements • This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding ERA’s financial position, business strategy, plans and objectives of management for future operations (including development plans, rehabilitation estimates and subjectives relating to ERA’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ERA, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. • Such forward-looking statements are based on numerous assumptions regarding ERA’s present and future business strategies and the environment in which ERA will operate in the future. Among the important factors that could cause ERA’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, adverse weather conditions, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on sales revenues, market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in ERA’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. • Nothing in this presentation should be interpreted to mean that future earnings per share of ERA will necessarily match or exceed its historical published earnings per share. Disclaimer
  4. 4. 4 www.energyres.com.au Australian and NT uranium is an important part of meeting the world’s energy supply Source: World Nuclear Association (2012) Note: Reasonably assured resources is not JORC compliant • Australia has 31 per cent of world’s economically recoverable uranium • Australia is third largest global producer - Northern Territory accounts for 13 per cent Reasonably assured resources <US$130/kg
  5. 5. 5 www.energyres.com.au Near term market conditions are tough; longer term fundamentals stronger • Key growth drivers remain – Economic growth in developing countries is only sustainable through increased power generation – Global mandate to reduce CO2 emissions – Long-term security and affordability of energy supply is a concern for many countries IEA projections – nuclear powergen 2011-2035 Source: IEA World Energy Outlook 2013
  6. 6. 6 www.energyres.com.au ERA business objectives 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. We do this by: • Developing a long term resource base on the Ranger Project Area – Ranger 3 Deeps Exploration – Ranger surface exploration • Continuing operational effectiveness • Building and maintaining strong stakeholder relationships • Excellence in rehabilitation practices
  7. 7. 7 www.energyres.com.au Ranger 3 Deeps exploration decline nearing completion • Face position 2,221 metres from surface at 30 June 2014 out of a total of 2,765 metres for the end of Phase 2 • Underground drilling totalled 38,578 metres at 30 June 2014 Ranger 3 Deeps drill holes - previous (red) and planned (grey)
  8. 8. 8 www.energyres.com.au Prefeasibility Study will be completed in late 2014 • Key developments in first half – Resource model updated in June 2014 • Critical items to be completed in second half – Completion of resource drilling, development of mine plans and submission of Draft Environmental Impact Statement critical path items for second half of 2014 – Prefeasibility Study to evaluate key elements of project: – Economic viability – Resource size – Development path – Operating and development costs – Ranger 3 Deeps remains subject to Board and regulatory approval Ranger 3 Deeps Forecast milestones to production Target Status Regulatory approval for exploration decline granted August 2011  Box cut excavation completed October 2012  Decline tunnel construction commences November 2012  Ranger 3 Deeps mine referral submitted to government Jan 2013  Exploration drilling starts June 2013  Exploration and resource drilling completed; completion of PFS End 2014 Regulatory and ministerial approval Mid 2015 Underground mine production Late 2015 Ranger 3 Deeps mineral resource model
  9. 9. 9 www.energyres.com.au Making progress on rehabilitation Pit 3 July 2014Pit 3 at completion of mining in November 2012 Pit 1 in 2000 Pit 1 with 70 per cent initial capping
  10. 10. 10 www.energyres.com.au Water management Brine Concentrator Testing of water from Brine Concentrator Continuous monitoringManaged release of water
  11. 11. 11 www.energyres.com.au Environmental protection Ranger Processing Plant • Independent supervision of Ranger • Supervising Scientist – Reports annually on performance – Continues to report that the surrounding Kakadu environment has remained protected • Alligator Rivers Region Advisory Committee • Alligator Rivers Regional Technical Committee • Minesite Technical Committee
  12. 12. 12 www.energyres.com.au Positive economic contribution Northern Territory Alligator Rivers Region Jabiru Direct contribution $217m $205m $205m Gross value added 1.3% 43% 67% Total contribution (operations and capital expenditure) $580m $273m $265m Gross value added 3.6% 58% 87% Ranger’s contribution to gross value added 2012 Northern Territory Direct contribution (Gross value added) Arts and recreation services 1.1% Electricity, gas, water and waste services 1.2% Information, media and telecommunications 1.3% Data source: ACIL Tasman estimates Equivalent or larger than
  13. 13. 13 www.energyres.com.au Community support initiatives • Kakadu West Arnhem Social Trust – Established in 2013 – Trustee Board includes GundjeihmiAboriginal Corporation and ERA representatives – Seeks to assist disadvantagedAborigines in Kakadu West Arnhem region – Projects supported include Children’s Ground, a broad community social and health programme and Culture First, an education initiative • Education partnership – Partnership between WestArnhem College and ERA – In its fifth year – Creating career pathways, apprentice and trainee opportunities for students from Jabiru and Gunbalanya schools Building our Local Talent Creating Awareness Building Readiness Offering Experience Monitoring Progress Effective School to Work Pathways
  14. 14. 14 www.energyres.com.au The future focus 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. We do this by: • Developing a long term resource base on the Ranger Project Area – Ranger 3 Deeps Exploration – Ranger surface exploration • Continuing operational effectiveness • Building and maintaining strong stakeholder relationships • Excellence in rehabilitation practices
  15. 15. www.energyres.com.au ERA – A business update Andrea Sutton | Chief Executive 20 August 2014

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