ANNUAL REPORT
2023
Business StrategyChair’s Report ACKNOWLEDGEMENT OF COUNTRY
We acknowledge the Mirarr people who are the Traditional Owners of
country where the Ranger Rehabilitation Project operates, and the Larrakia
people who are the Traditional Owners of country where our Darwin head
office is located.
We pay our respects to Elders past and present and extend that respect
to all Aboriginal and Torres Strait Islander peoples.
2 Energy Resources of Australia Ltd Annual Report 2023
CONTENTS
Energy Resources of Australia Ltd
Annual Report 2023
About ERA
Chair’s Report
Chief Executive’s Report
Year In Review
Our Rehabilitation Progress
Business Strategy
Financial Performance
Business Risks
Future Supply
Health and Safety
Regulatory Framework
Financial Report
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Statement of Comprehensive Income
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information (Unaudited)
2023 ASX Announcements (Unaudited)
Ten Year Performance (Unaudited)
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Energy Resources of Australia Ltd Annual Report 2023 3
About ERAChief Executive’s ReportYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s Report 4 Energy Resources of Australia Ltd Annual Report 2023
4 Energy Resources of Australia Ltd Annual Report 2023
ABOUT ERA
Energy Resources of Australia (ERA) operated the former Ranger mine, Australia’s
longest continuous uranium mine surrounded by, but separate from, Kakadu National
Park in the Northern Territory.
ERA holds the title to the world-class Jabiluka Mineral
Lease. In accordance with the Jabiluka Long Term Care
and Maintenance Agreement, the Jabiluka deposit will
not be developed by ERA without approval of the Mirarr
Traditional Owners. The Jabiluka estimated Mineral
Resource is 137,100 tonnes of uranium oxide at a
cut-off grade of 0.2% U3O8. The current lease is
due to expire in August 2024. ERA has commenced
discussions with stakeholders, including the GAC,
concerning any application for renewal of the Lease.
ERA’s strategic priority is to rehabilitate the Ranger
Project Area and the company’s primary focus is to
create a positive legacy and achieve world-class,
sustainable rehabilitation of former mine assets.
The principles that guide ERA’s approach are safety,
teamwork, respect, integrity, and excellence
in every area of the business.
The company’s shares are publicly held and traded
on the Australian Securities Exchange. Rio Tinto,
a diversified resources group, currently holds
86.3% of ERA shares.
The former Ranger uranium mine lies within the
79 square kilometre Ranger Project Area, which
is located eight kilometres east of Jabiru and
260 kilometres east of Darwin.
ERA ceased mining operations in 2012 and continued
to process stockpiled ore until 8 January 2021, when
the Ranger Authority required processing to cease.
The sale of the last drum of uranium oxide was made
in May 2022. The Ranger Project Area is now being
progressively rehabilitated.
Under the Ranger Authority, ERA must rehabilitate
the Ranger Project Area to establish an environment
similar to the adjacent areas of Kakadu National Park.
If this occurs and it is the opinion of the Minister, with
the advice of the Australian Government’s Office of the
Supervising Scientist (OSS) (previously referred to as
the Supervising Scientist Branch), the rehabilitated area
could be incorporated into the Kakadu National Park,
if this aligns with the Traditional Owners wishes.
ERA’s ongoing rehabilitation activities on the
Ranger Project Area are undertaken according to an
authorisation granted under section 41 of the Atomic
Energy Act 1953 (the Ranger Authority). Under the
terms of the current Ranger Authority, ERA’s rights
to access, occupy and use the Ranger Project Area
continue until 8 January 2026.
As this Act was amended in November 2022, ERA is
working with the Australian Government, Northern Land
Council (NLC) and Gundjeihmi Aboriginal Corporation
(GAC) – on behalf of the Mirarr Traditional Owners,
to negotiate a new Ranger Authority that allows
rehabilitation works to continue past 8 January 2026.
Energy Resources of Australia Ltd Annual Report 2023 5
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report CHAIR’S REPORT
As I move into my second year as a member of the
ERA Board, I reflect on the pace at which change
affects the ERA business and the Ranger Rehabilitation
Project, and I am thankful to be a part of this unique
project. I look forward to continuing our journey
of restoration.
The Board is proud of the progress made throughout
the year and the sense of purpose we have heading
into 2024.
Ongoing progress in delivering
world-class rehabilitation
ERA continued to maintain the high standards for the
progressive rehabilitation of the Ranger Project Area
(RPA) throughout 2023. The Board has overseen ERA’s
organisational transformation and culture program
which has allowed strong progress in project execution.
Several pleasing highlights over the year included
completion of wicking and commencement of Brine
Injection, giving the ERA Board a high degree
of confidence that investments in capability and
culture have produced positive results.
ERA released the updated 2023 Ranger Mine Closure
Plan (the Plan), outlining the path for mine closure
and progressive rehabilitation in line with the cultural
closure criteria developed in partnership with the
Mirarr Traditional Owners. This release follows annual
updates to the plan since its first public release in
June 2018.
It is also pleasing to see ERA’s commitments in Jabiru
being delivered to high levels of quality, receiving
positive feedback from stakeholders. ERA remains
committed to delivering on its commitments in Jabiru.
The ERA team continue to work collaboratively with
Gundjeihmi Aboriginal Corporation (GAC), Northern
Land Council (NLC) and relevant Government
departments to progress a new section 41 Authority
(and associated agreements) to extend its existing
Ranger authority beyond the original January 2026
deadline. As agreed by stakeholders, this will allow
additional time for ERA to complete the rehabilitation
of the Ranger Project Area, including long-term
monitoring and maintenance.
Reaching certainty through studies
During 2023, ERA invested significant efforts and
resources to complete the 2022 Feasibility Study.
The outcomes of the 2022 Feasibility Study challenged
core project assumptions, and now require further
analysis to verify the key areas that are driving risk
and increases to cost and schedule estimates.
ERA is undertaking separate studies to verify
estimates and investigate alternative solutions.
ERA’s current rehabilitation provision has increased
to $2.4 billion. A significant portion of this estimate
can be attributed to activities after 2027, some of
which are subject to further studies. ERA will use the
outcomes from the studies to verify and attempt to
mitigate estimated cost and schedule impacts.
However, with further studies underway around
assumptions beyond 2027, ERA is transitioning to a
programme management approach to rehabilitation. This
approach supports each stage of the project to reach
appropriate levels of certainty through accurate studies
and is best supported by an ERA-led execution model.
6 Energy Resources of Australia Ltd Annual Report 2023
Commitment to good governance
In May 2023, ERA confirmed the successful completion
of an Interim Entitlement Offer (IEO). There was strong
support for the IEO, and these funds raised will provide
ERA with sufficient capital to fund its planned Ranger
Project Area rehabilitation works through to Q3 2024.
Further funding is required by ERA this year to fund
the next period of planned rehabilitation works and this
funding requirement is expected to be addressed in
the form of a material equity raise in 2024. Details on
funding will be provided in due course and shareholders
should consider business risks and opportunities in any
future investment decisions.
After late governance changes in 2022, ERA
announced the appointment of independent non-
executive director, Mr Stuart Glenn. Following on from
the earlier appointments of other independent non-
executive directors the Hon. Ken Wyatt and myself,
the Board resolved to re-establish the Independent
Board Committee (IBC) in early 2023, with membership
including the Hon. Ken Wyatt, Mr Stuart Glenn and
myself.
In December 2023, we said farewell to Jacques van
Tonder who has been a Non-Executive Director on the
ERA Board for 3 years. On behalf of the Board, we
thank Jacques for his contribution. We also welcomed
Mr Alfie Grigg as a Non-Executive Director and look
forward to his contribution in the year ahead.
The Board and I thank all that have been involved
with ERA for their efforts, support, and dedication
throughout 2023.
Rick Dennis
Chair
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Energy Resources of Australia Ltd Annual Report 2023 7
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CHIEF EXECUTIVE’S REPORT
Thank you for the opportunity to give an
overview of our business performance
in 2023. It has been a productive year
of achieving several rehabilitation
milestones on the Ranger Project Area,
alongside our investment into building
project capability and pursuing long-term
certainty on key project assumptions.
I am pleased to report that ERA has
made solid progress across all these
areas, with clear plans in place for 2024.
Priorities in 2023 were:
1. Progressing rehabilitation while continuing to focus
on the outstanding safety and well-being of
our people
2. Undertaking the 2022 Feasibility Study and
presenting the outcomes, and setting up additional
studies to improve clarity needed on factors driving
our schedule and cost estimates
3. Embedding project capability within ERA to support
transition to a suitable project execution model,
the programme management approach
4. Collaborating with stakeholders to progress a new
section 41 Authority (and associated agreements)
to extend ERA’s existing Ranger authority beyond
the original January 2026 deadline, to allow ERA
sufficient time to carry out rehabilitation
5. Continuing to deliver rehabilitation activities on the
Ranger Project Area and commitments in Jabiru.
Throughout 2023, ERA continued to prioritise the
safety and wellbeing of all ERA staff and contractors.
During the year, ERA celebrated a record of over
1300 days without any Lost Time Injuries (LTI). ERA’s
safety culture was evident with another year of zero
recordable injuries. This year also marks the third
consecutive year with an All-Injury Frequency Rate
(AIFR) of 0.0.
In support of our strong safety record, we continue to
implement the Rio Tinto Safety Maturity Model and
recorded a score improvement of 4.3, up from 4.0.
This is an excellent result for our team since
implementing this model, and I commend all at ERA for
their commitment and dedication to safety.
In 2023, we continued to deliver on our purpose to
create a positive legacy and achieve world-class,
sustainable rehabilitation of former mine assets.
I am pleased to share that we have achieved
several significant milestones:
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Celebrated 2 years of revegetation restoration
success on Pit 1. As part of the Ecosystem
Establishment Strategy, the progress, growth
and resilience shown at Pit 1 gives us confidence
in the ecosystem design underway for the
remaining areas of the Ranger Project Area.
Demonstrated progress of works at Pit 3 to
prepare for dry capping and safe storage of
brine. This included installing 41,000 wicks in
Pit 3, dewatering Pit 3 and activities to support
drying out tailings on Pit 3. Brine injection wells
were commissioned and installed, followed by
successful brine injection.
8 Energy Resources of Australia Ltd Annual Report 2023
I would like to take the opportunity to particularly
thank the Mirarr Traditional Owners for their guidance
throughout the year. We are looking forward to
collaborating with the Mirarr over the coming years to
better understand the rich cultural landscape as part
of our rehabilitation activities.
I extend thanks to everyone who supported ERA in
2023. I carry a sense of optimism as I look ahead to
2024 and the opportunities that await us as we
continue our work to deliver world-class rehabilitation.
Brad Welsh
Chief Executive &
Managing Director
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Progressing improvements to the water treatment
capacity at Ranger. This includes completed
investments to the Brine Squeezer to allow
additional process water treatment from the
Ranger Water Dam. The team also progressed
improvement initiatives in the Brine Concentrator
to improve plant reliability and production
consistency.
Completed refurbishments on the ERA workers
camp in Jabiru, as part of our commitment to
creating a safer environment for all personnel,
in line with the Rio Tinto Everyday Respect
recommendations.
Implemented procurement and process changes
which saw an increase in engagement with
Indigenous businesses and increased spend
with Indigenous suppliers in multiple areas
of the business, up 11.9% from last year to
21.07% of contestable spend.
The Jabiru housing refurbishment program
continued to progress through 2023 with ERA
progressively working to transfer 103 completed
sublease properties to third parties.
These achievements, as well as planning and
approvals for future rehabilitation activities, were
carried out in collaboration with the Gundjeihmi
Aboriginal Corporation (GAC), Northern Land
Council (NLC), Office of the Supervising Scientist,
Australian and Northern Territory regulators and
various statutory committees.
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Energy Resources of Australia Ltd Annual Report 2023 9
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YEAR IN REVIEW
| Integrated Project
Management team
formally commenced
| Installation of the
new Brine Injection
System completed
| Independent
Board Committee
re-established
| Successful initial
brine injection
commenced
| 2-year milestone in
Pit 1 revegetation
trial celebrated
JAN
FEB MAR
APR MAY
JUN
| Fully subscribed
Interim Entitlement
Offer successfully
completed, raising
$369 million
| Independent
Non-Executive
Director Stuart
Glenn appointed
| $369 million
renounceable
entitlement offer
announced
| Wicking project
completed and
drying out of wicked
zone commenced
| 1000+ days free
from Lost Time
Injuries (LTIs)
10 Energy Resources of Australia Ltd Annual Report 2023
10 Energy Resources of Australia Ltd Annual Report 2023
10 Energy Resources of Australia Ltd Annual Report 2022
| Rehabilitation & Ecology
Specialist Megan Parry
wins Newcrest Exceptional
Young Woman in Australian
Resources
| Details of additional studies
to address uncertainty
announced
| Pit 3 dewatering commenced
following confirmation of water
quality and approval to pump
water into the Ranger
Water Dam
| Transition of Brine Concentrator
operations from third-party to
ERA management is completed
| Outcomes and data from the
2022 Feasibility Study received
JUL
AUG SEPT
OCT
NOV
DEC
| Preliminary findings
from the Feasibility
Study announced
| Contract for the
supply of amphirolling
machines to
accelerate the drying
of tailings awarded
| Programme
management
approach adopted
to better manage
areas of uncertainty
| Adjustment to the provision
for rehabilitation costs based
on available information
| Mr Jacques van Tonder
resigned as Non-Executive
Director of the Company
effective 31 December 2023
| Mr Alfie Grigg appointed as a
Non-Executive Director of the
Company effective 1 January
2024
| Mine Closure Plan for 2023
published
Energy Resources of Australia Ltd Annual Report 2023 11
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report HIGHLIGHTS OF 2023
$211M
Total spend on rehabilitation
work in 2023
$734M
Total spend on rehabilitation
work TO DATE (JANUARY 2019
TO DECEMBER 2023)
21.07%*
OF TOTAL CONTESTABLE
SPEND WAS WITH INDIGENOUS
OWNED BUSINESSES
*Rolling 6-month average
OVER
41,000
wicks INSTALLED IN PIT 3
1900
MEGALITRES OF BC DISTILLATE
PRODUCED
45%
of our executive committee
and managers ARE women
63%
OF 3RD PARTY PROPERTIES IN
JABIRU WERE TRANSFERRED
TO THIRD PARTIES
17%
OF OUR EXECUTIVE COMMITTEE
AND MANAGERS ARE INDIGENOUS
12 Energy Resources of Australia Ltd Annual Report 2023
This was an interim project execution approach to
support rehabilitation activities being done alongside
the 2022 Feasibility Study. This approach brought the
best of Bechtel’s project capability alongside ERA’s
rehabilitation expertise. The transition to the IPMT
was completed by March 2023.
During 2023, ERA made investments to further refine
the rehabilitation execution scope, costs and schedule
through the 2022 Feasibility Study. The outcomes
of this process challenged core assumptions of the
Ranger Rehabilitation Project, and now require further
analysis to verify the key areas that are driving risk
and increases to cost and schedule estimates. This
will be a major priority for 2024 and will be facilitated
by the recently adopted programme management
approach. This approach seeks to ensure that project
scopes with certainty can proceed, in parallel to
studies on remaining project execution scopes
without certainty.
As Project Director Bernard Toakley indicates:
“We celebrate the completion of the 2022 Feasibility
Study. After 17 months, this process has refined the
projects key assumptions and will be critical to inform
the work program going forward to close out remaining
areas of uncertainty. Whilst we are continuing with a
range of uncertainties, the amount of work that went
into this process from the study team and everyone
involved in the process is worth recognising”.
Alongside the study, ERA implemented a series
of initiatives to strengthen ERA’s in-house project
execution capability. The IPMT supported execution
activities for 2023 and into 2024. With further studies
underway around long-term project assumptions, ERA
is now using a programme management approach. This
approach supports each stage of the project to reach
appropriate levels of certainty through accurate studies
and is best supported by an ERA-led execution model.
Throughout 2023, ERA made solid
progress on several business priorities,
driven by continued investments in
building project capability and the
strong team culture needed for world-
class rehabilitation. ERA’s continued
commitment to initiatives to improve
safety and well-being, leadership
alignment, dignified and safe working
environments, and increase cultural
awareness, occurred across all
levels of the organisation.
ERA’s primary focus is the rehabilitation of the Ranger
Project Area, and in 2023, ERA continued to deliver
against planned rehabilitation activities, reaching
several critical project milestones. These milestones
are in line with Australian and Northern Territory
governments requirements and the wishes of the
Mirarr Traditional Owners.
ERA continued to work collaboratively with Gundjeihmi
Aboriginal Corporation (GAC), the Northern Land
Council (NLC) and relevant government departments
to progress a new section 41 Authority (and associated
agreements). The amendments passed in 2022 to the
Atomic Energy Act 1953 (Cth) allowed for an extension
of the Ranger Authority beyond the original January
2026 deadline. The extension of the deadline will
provide sufficient time to complete rehabilitation of the
Ranger Project Area and long-term monitoring and
maintenance.
Project Execution Approach
Over 2023, ERA embedded project execution, reporting
and governance systems through the mobilisation of
the Integrated Project Management Team (IPMT)
with support from Bechtel.
MEET MEGAN HIGHFOLD,
CORPORATE COUNSEL FOR ERA
I am a descendant of the Kokatha People from South
Australia. I have worked as a lawyer and strategic
advisor for over 12 years in the Northern Territory and
Western Australia including for Aboriginal corporations,
a state-owned utility and recently the mining industry.
I have been the Corporate Counsel with ERA for
almost 12 months now.
I am driven by my belief that culture and industry
can complement and even enhance each other if
we work together. My approach is to collaborate
with Traditional Owners to reach mutually beneficial
outcomes; reach agreements which support Traditional
Owners in achieving their social, cultural and economic
aspirations. I’m proud to work for a company who
understands the importance of collaboration with the
Traditional Owners as essential to achieving its vision.
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report Rehabilitation
Rehabilitation activities are documented
in ERA’s Mine Closure Plan (MCP), which
was updated in December 2023 and
released publicly. The Mine Closure Plan
is prepared by ERA to demonstrate how
the proposed closure activities will achieve
the environmental requirements attached
to the section 41 Authority. The 2023
MCP also includes details of the role ERA
has in supporting the post-mining social
and economic transition of Jabiru. The
MCP is submitted for approval to both the
Commonwealth Minister for Resources and
for Northern Australia, and the Northern
Territory Minister for Mining and Industry.
14 Energy Resources of Australia Ltd Annual Report 2023
OUR WORK ON PIT 1
2023 marked 2 years since Pit 1 was revegetated. This work
is the largest revegetation effort undertaken by ERA to date.
Through the implementation of innovative techniques and
refining plant cultivation methods, ERA has increased the
knowledge base needed to inform successful ecosystem
establishment, which will contribute to future closure
revegetation efforts.
Specialist in Rehabilitation and Ecology Megan Parry
acknowledged this success saying, “The outcomes of the
trials have provided us with valuable insights into revegetation
of a former mining pit, particularly regarding the survival and
growth of young plants amid harsh rock substrates.”
Megan further commented “Despite challenges – notably
the absence of topsoil – our ecology team were very
resourceful. They were able to address these obstacles by
incorporating native species adapted to rocky substrates from
the surrounding Kakadu National Park into our revegetation
species mix. I am very proud of my team and their efforts
throughout these 2-year trials”.
There has been strong survival and stable growth rates of the
planted flora in the Pit 1 area. Signs of fauna returning to the
revegetated area, coupled with the plant species successfully
reproducing and establishing on the site, is promising.
The outcomes of these establishment trials inform how
we will revegetate Pit 3 and serve as a case study for the
resource industry. Megan adds, “By establishing a standard
in revegetation practices, we are showcasing world-class
rehabilitation that will inspire and guide future endeavours
in the industry.”
Nurturing resilient ecosystems at Pit 1
The successful completion of the 2-year establishment
period for Pit 1 in 2023 marked a significant milestone
for ERA. This trial was an important case study to
inform how ERA can improve ecosystem establishment
and revegetation work processes, particularly in relation
to the survival of young plants. ERA has continued the
monitoring, maintenance, and adaptive management
activities on Pit 1 to inform surface water runoff and
ecosystem re-establishment.
A critical part of the trial was to incorporate native
species adapted to rocky substrates from the
surrounding Kakadu National Park into the revegetation
species mix. The input of partner Kakadu Native Plants
(KNP) was critical to both the planting and propagation
success of this project.
The species planted have shown both survival and
stable growth, with some plants reaching a height of
seven metres. Early signs of fauna returning to the
landform have been observed along with new plant
species from the surrounding landscape establishing
on Pit 1 on their own. Importantly, species are also
successfully reproducing and establishing in the
challenging waste rock substrate.
This large-scale revegetation initiative allowed ERA
to implement innovative irrigation techniques and
refine methods for growing plants. This resulted in
improvements to the methodology to increase
capacity to plant more trees and vegetation for
future revegetation work on the RPA.
Energy Resources of Australia Ltd Annual Report 2023 15
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report Strong Progress on Pit 3
Pit 3 is important for the Ranger Rehabilitation
Project as it is the deepest repository where ERA can
store tailings, brine, demolition waste, contaminated
materials, and return the waste rock removed by
mining, in an environmentally sound manner. Strong
progress at Pit 3 is a critical path activity so that ERA
can minimise the long-term environmental impacts by
safely storing these materials deep within the pit,
in accordance with requirements.
In March 2023, ERA successfully completed its first
injection of brines into the Pit 3 underfill, via the
completed brine injection upgrade system installed
in 2022. Subsequently, ERA has seen mostly
uninterrupted availability of this new injection system.
This is a positive sign for safely storing salts in an
environmentally sound manner.
In April 2023, ERA completed a critical path activity to
expedite the consolidation of over 43 million tonnes
of tailings that had been transferred from the former
Tailings Storage Facility to Pit 3. The consolidation of
tailings is an early stage to safely store the tailings and
to create a safe working platform for future rehabilitation
activities. To achieve this, over 41,000 Prefabricated
Vertical Drains (PVDs) or ‘wicks’ were installed into the
tailings to depths of up to 40 metres. Once installed,
the wicks provided a flow path for water trapped within
the tailings, allowing the water to be expressed and the
tailings to rapidly consolidate.
Following the installation of the wicks, the tailings
consolidated at a strong rate. To further support
the drying process, 2.2 gigalitres of water was
successfully transferred from Pit 3 to the Ranger
Water Dam for storage. As the tailings continue to dry
out, ERA has active management plans in place for
the management of dust. During the final Quarter of
2023, through suppliers Kaddum Industries, equipment
was mobilised to be used to accelerate the drying
of Pit 3 tailings within the completed wicked zone.
Additional specialised drying equipment, amphirollers,
are expected to be delivered in January 2024 by
Indigenous supplier Rusca Brothers.
Works on Pit 3 up until this point have been approved.
The subsequent capping stage of Pit 3 remains subject
to the Pit 3 backfill approval application. This was
resubmitted to regulators for review and approval in
September 2023. Final approval is expected in the
latter part of Quarter 1, 2024. ERA acknowledges
the valuable feedback into this application from the
Office of the Supervising Scientist (OSS) and Northern
Land Council (NLC) which was addressed in the final
application.
Once approved, the Pit 3 application will trigger the next
sequence of work, including placement of geotextile and
waste rock over the tailings surface, which will create a
solid foundation for the placement of demolition waste,
contaminated material and waste rock.
Engineering and detailed design for Pit 3 geotextile
placement, capping, decant and monitoring infrastructure
reached 80% progress in 2023, and will be finalised in
early 2024.
PIT 3 MILESTONE
ERA made strong progress getting Pit 3 ready for future
capping activities, by removing the last of the water
from the Pit. A substantial 2.0 gigalitres of water have
been successfully transferred from Pit 3 to the Ranger
Water Dam, signalling material progress in preparing
Pit 3 for capping.
Superintendent Jaysen Roach said, “It’s great to see
the hard work the teams have invested to get to this
point become a reality. Pit 3 is starting to look very
different for the first time in a number of years which
is a sign of progress”.
As more of the tailings become exposed to the
elements and dry out, Jaysen goes on to say “We
remain on alert to manage any dust issues arising
from tailings that are now exposed. There is a dust
management plan in place that has been approved by
our stakeholders. This means we are working across
multiple fronts to manage this.”
The dewatering process follows the successful
completion of the wicking project in April where
the team inserted an impressive 41,000 wicks into
Pit 3. This novel, innovative process was critical to
supporting the fast consolidation of the tailings, which
supports secure storage of the tailings and a safe work
platform to commence capping activities.
16 Energy Resources of Australia Ltd Annual Report 2023
CELEBRATING THE COMPLETION OF WICKING AT PIT 3
In March 2023, the wicking program in Pit 3 was
successfully completed. This achievement involved
inserting approximately 41,000 wicks into the tailings of
Pit 3. With each wick ranging between 25-40 meters,
these wicks would cover a distance equivalent to that
from Darwin to Alice Springs when laid out flat. Wicking
represents a significant milestone for ERA. It enables
water to be extracted from the tailings material to
support the consolidation of tailings, which enables Pit
3 rehabilitation works to continue.
ERA partnered with Ventia for their experience in
environmental remediation and directional drilling
capability. The project presented challenges, as
acknowledged by Jason Gaul of Ventia, who highlighted
“there were a range of safety challenges for the team
to consider. These included working around tailings,
acidic water, moving plant equipment in tight spaces,
and challenging environmental conditions such as rain,
lightning, and heat.”
Collaboration was key, as emphasised by Ranger
Rehabilitation Project Director, Bernard Toakley:
“ERA and our contracting partners worked cohesively
to establish excellent teamwork, addressing the
challenges encountered during the wicking project.
Each challenge was significant, demanding a strategic
approach and strong collaboration among the key
parties involved in the project’s delivery.”
Due to a covering layer of water up to five metres in
depth over the tailings, a specialised delivery method
was required to achieve success. A novel, unique barge
system was designed and constructed to allow the
installation of wicks from the water’s surface.
The works required an onsite workforce of over
70 personnel and over 101,000 hours worked on
site to successfully deliver the project. Despite the
complexity and challenges faced, including submerged
obstructions, poorly consolidated tailings, weather
delays during the wet season, and early logistical
challenges, the collaboration between ERA, Ventia,
SWAMOJV, Polaris Marine Operation, and ERA’s
Integrated Project Management Team has facilitated
the efficient and safe completion of this critical phase
in the Ranger Rehabilitation Project.
Now that the tailings material has consolidated, the
covering layer of water has been removed to the
Ranger Water Dam, allowing the tailings to dry for
the commencement of initial capping, including the
installation of geotextile fabric.
The wicking program played a significant role in the
rehabilitation project, serving as a critical activity
to complete rehabilitation. The performance of the
wicks exceeded expectations, leading to a substantial
reduction in the tailings surface across Pit 3.
Energy Resources of Australia Ltd Annual Report 2023 17
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report Safe and Efficient Operations
Alongside rehabilitation efforts, ERA continues to
invest in safe and efficient operations at the former
Ranger mine. A critical activity is the monitoring and
management of the water on site that originates from
rainfall, groundwater, creek flow, and clean water from
the various water treatment plants on the Ranger
Project Area. Over the course of 2023, over 3000
samples were taken from the 400 monitoring sites
on and around the Ranger Project Area.
In 2023, ERA made investments in improving
efficiencies in key activities on site driving cost and
schedule. ERA made good progress on the stable and
efficient operations of the Brine Concentrator, which
treated 1900 mega litres of water. To yield further
efficiencies, ERA also successfully transferred Brine
Concentrator operations under third-party management
back to ERA management in October 2023.
ERA also completed the upgrade to the Brine Squeezer
which is now complete. These investments allow the
additional treatment of process water from the Ranger
Water Dam. This is expected to be commissioned
in 2024.
ERA has led major cultural and organisational
transformation during 2023, which has underpinned
project execution and excellent safety milestones this
year. Initiatives have included investments at leadership
and management levels to align on ERA’s purpose and
workplace culture. ERA also completed refurbishments
on the ERA workers camp in Jabiru, as part of our
commitments to creating a safer environment for all
personnel, in line with the Rio Tinto Everyday Respect
recommendations. ERA also celebrated 1000 days of
no lost time injuries and improvements in the Safety
Maturity Score from 4.0 to 4.3.
Safety is one of the driving principles that guide ERA’s
approach to execution. This year ERA celebrated a key
safety milestone – 1000 consecutive days without a Lost
Time Injury (LTI), reaffirming ERA’s commitment to zero
harm. The Warehouse Team at the Ranger site also
reached a significant milestone surpassing 2700 days
without any LTIs. These achievements reflect ERA’s
focus on creating a safe work environment. In recognition
of this achievement, ERA’s Project leadership team
extended congratulations through celebration events
such as BBQs for the workforce.
MEET ERA’S DAVID STAGGS,
SUPERINTENDENT, WATER
MANAGEMENT
As Superintendent, Water Management, I lead a diverse
team of people who monitor and manage all the water on
site that originates from rainfall, groundwater, creek flow,
and clean water produced by the various water treatment
plants on site.
I’m a hydrogeologist and over the last 5 years at ERA,
have focused on groundwater and surface water
research, water treatment, and water management for
landscape rehabilitation. This project, with its unique
regional challenges, has pushed my professional
development to the next level.
The best parts of my role are the array of technical
challenges I am exposed to, being able to work with
some of the leading technical experts in the industry
and being able to witness a mine site transition through
closure and rehabilitation.
One of my biggest achievements during 2023 was
having a study I have been involved with since the
beginning of my time at Ranger presented at the
International Mine Closure Conference in Reno Nevada.
In 20 years’, I want to see a rehabilitated landscape
thriving where the mine used to be.
18 Energy Resources of Australia Ltd Annual Report 2023
LEADING THE WAY IN WATER TREATMENT
In 2023, our water treatment team proudly celebrated a
significant milestone with the successful upgrade of the
Brine Squeezer. This achievement, followed a highly
successful pilot testing campaign, showcasing the
team’s dedication to innovation and efficiency in
water treatment processing.
Nandiya Abeygunawardana, Senior Engineer Process,
said that “the reason behind the pilot testing campaign
was that we wanted to see if our existing Brine
Squeezer could be used to treat highly concentrated
process water. Our Brine Squeezer uses reverse
osmosis technology, and that technology has not
been applied before to Ranger process water with its
complex chemistry. The pilot testing campaign was
necessary as this was a novel process without any
examples to refer to.”
Nandi commended his team, praising their teamwork
and dedication.
“I am beyond proud of what we have achieved during
the pilot testing. To prove the technology is going to
work for the process water on-site, I think that this will
be a useful example for other industries dealing with
similar water challenges.”
Built in 2019, the Brine Squeezer originally cleaned
waste from other water treatment plants on site.
Currently, those plants work in the wet season, leaving
the Brine Squeezer with extra capacity in the dry
season. The upgrade aims to use the plant more in the
dry season, working with another system to clean the
water on site for storage and safe release.
Energy Resources of Australia Ltd Annual Report 2023 19
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report Our work in Jabiru
HOUSING RECTIFICATION
Jabiru was originally established to service the
workforces working for NT Government and mines
in the surrounding area. In June 2021, the Mirarr
Traditional Owners were successful on the grant of
land and execution of the Section 19A township lease
for Jabiru. Since 2021, the Mirarr Traditional Owners
– through Gundjeihmi Aboriginal Corporation Jabiru
Town – have been implementing the vision for the
Future of Jabiru. The Mirarr Traditional Owners’ vision
for the future of Jabiru is for it to transition to ‘A world
leading sustainable, economically and socially vibrant
community where traditional Aboriginal culture, all
people and the natural environment flourishes’.
As part of ERA’s commitments in Jabiru, ERA has
continued to deliver good progress on the Jabiru
housing rectification program. In 2023, ERA reached
the milestone of 117 dwellings rectified since the
program began. This is 60% of the third-party dwellings
now rectified. ERA transferred 72 rectified dwellings to
third parties to enable tenanting.
ERA continues to support a range of organisations in
Jabiru through the Community Partnership Fund and
various community initiatives.
As part of ERA’s commitments to support the
transition of Jabiru township, ERA has been working
to rectify houses and transition them back into
the Jabiru rental pool. The priority has been the
rectification of third-party houses.
In 2023, ERA successfully executed 7 packages
of rectification works, covering 32 residences.
Currently, 17 residences are in various stages of
rectification, all scheduled for completion in 2024.
A noteworthy achievement of 2023 was the sublease
transfer of 72 dwellings. This included a mix of
housing types, comprising 4 two-bedroom units,
15 single-bedroom units, 45 three-bedroom houses,
and 8 four-bedroom houses. Some of these transfers
were linked to packages awarded in 2022 that
extended into the following year.
Michael Starr, Superintendent, Site Services, states
“I am feeling very positive about the trajectory of the
housing rectification project. It is great to receive
good feedback from our stakeholders in support
of our work. It was a great milestone to handover
72 dwellings in 2023”.
20 Energy Resources of Australia Ltd Annual Report 2023
Collaboration in 2023
ERA is committed to investing in the right capability
to achieve our purpose of delivering world-class
rehabilitation.
ERA is collaborating with an increasing number of
Indigenous businesses such as long-time partners
Kakadu Native Plants and new supplier Kaddum
Industries. These organisations bring valuable expertise
that are essential to the rehabilitation project. This is
critical to shaping ERA’s work and contributes to the
successful outcomes ERA has been able to deliver
in 2023.
Environmental consultants Umwelt partnered with ERA
in early 2022 to assist with the mine closure application
for Pit 3. Throughout 2023, Umwelt provided ERA
with the additional technical and resource capacity
to restructure and revise the Mine Closure Plan in
collaboration with stakeholders. Umwelt also provided
a range of additional support across works in social
impact and engagement strategy.
ERA values the perspectives of subject matter experts,
including stakeholders and welcome inputs regarding
rehabilitation planning and execution. ERA regularly
engages a diverse range of stakeholders on various
aspects of rehabilitation and works in Jabiru through
regular participation on committees and working groups.
Engaging with stakeholders through these mechanisms
throughout the year was valuable for ERA and had
a positive impact on shaping ERA’s approach to
rehabilitation.
Closure and rehabilitation activities, processes
and criteria for the Ranger Project Area have
been developed, scrutinised, and adapted through
stakeholder engagement mechanisms, including
the Ranger Closure Consultative Forum, Mine
Technical Committee, Alligator Rivers Region
Advisory Committee, Alligator Rivers Region Technical
Committee, and the Relationships Committee. There
are also a range of engagement mechanisms for the
Future of Jabiru program, in which ERA regularly
participates. ERA thanks all of those involved, for
their ongoing contributions and engagement.
ERA continues to work with the Australian
Government’s Office of the Supervising Scientist (OSS)
to monitor and protect the environment. ERA thanks
the OSS team for their professional and collaborative
working relationship, and the commitment to upholding
environmental research and developing standards and
practices for environmental protection. This ongoing
collaboration is essential to achieving world-class
rehabilitation.
COLLABORATING WITH LOCAL
INDIGENOUS BUSINESS –
KADDUM INDUSTRIES
Local Jabiru business, Kaddum Industries, is
assisting ERA with the dewatering and dust
management activities of Pit 3. Since commencing
in September, Kaddum Industries has already
earnt recognition through 12 awards for workplace
health and safety practices.
Director and owner Mel Patterson says,
“Kaddum Industries was founded in 2017 and
was established with the intention of creating
job opportunities for the local community. We
take pride in being a majority Aboriginal owned
and operated business, actively engaging and
employing local talent.”
Mel goes on to say, “As a member of the Jabiru
community, during my earlier employment with
Ranger ERA operations, I have been witness to
the transformation from the days when the Ranger
mine was in full operation. Now, as we transition
from a mining site to a rehabilitation phase, I am
enthusiastic about being a part of this chapter and
actively involved in this journey.”
Mel concludes, “I live here. I grew up here and my
kids are here. I am invested in the success of the
rehabilitation of the former mine site. I want to do
my part – in creating job opportunities, leading the
way in Aboriginal business, and showing what life
is like on the other side of a mining operation.”
Energy Resources of Australia Ltd Annual Report 2023 21
About ERAYear in ReviewFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report OUR REHABILITATION PROGRESS
Pit 1
Ranger Water Dam (RWD)
previously Tailings Storage Facility (TSF)
1981 – Pit 1 mining commenced
2016 – Tailings transfer project commenced
1994 – Pit 1 Mining finished
2020 – Dredging on TSF
2021 – Pit 1 tree planting commenced
2021 – TSF Floor & Wall cleaning
2023 – Pit 1 landscape thriving
2021 – TSF dredging and cleaning complete. Renamed Ranger Water Dam
22 Energy Resources of Australia Ltd Annual Report 2023
Pit 3
Trial Landform (TLF)
1997 – Pit 3 Mining Commenced
2009 – 2010 – Tubestock planted on TLF
2012 – Pit 3 Mining finished
2014 – Threatened Easter Patridge Pigeons call TLF home
Y
e
a
r
i
n
R
e
v
e
w
i
2022 – Pit 3 Wicking commenced
2018 – NLC visit the TLF to see the impressive growth of native
species on the site
2023 – Pit 3 Capping complete
2023 – TLF Flora and Fauna continue to thrive
Energy Resources of Australia Ltd Annual Report 2023 23
About ERAFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsBusiness StrategyChair’s ReportChief Executive’s Report
BUSINESS STRATEGY
ERA’s purpose is to create a positive
legacy and achieve world-class,
sustainable rehabilitation of former mine
assets. The Ranger Rehabilitation Project
is unique in that it is rehabilitating land
in one of the world’s most culturally and
environmentally sensitive locations,
surrounded by the World Heritage Listed
Kakadu National Park on the land of
the Mirarr Traditional Owners.
ERA’s strategic priority continues to be the rehabilitation
of the Ranger Project Area in accordance with ERA’s
obligations such that it can be incorporated into Kakadu
National Park, if the Mirarr Traditional Owners wish.
ERA plans to deliver this purpose by:
y
y
y
Creating a physical, ecological and cultural
landscape that meets the expectations of the
Mirarr Traditional Owners
Setting the standard for mine site rehabilitation in
a culturally and environmentally sensitive region
Achieving this in partnership with Mirarr
Traditional Owners, governments and other
key stakeholders.
In May 2022, ERA commenced a Feasibility Study
to further refine the Ranger Project Area rehabilitation
execution scope, risks, cost, and schedule. ERA
received outcomes from the 2022 Feasibility Study
that require more analysis and separate studies.
ERA’s current rehabilitation provision on 31 December
is $2.4 billion, up from $1.2 billion from the previous
period. Of the increase in the provision, approximately
85% is attributable to rehabilitation activities post 2027.
24 Energy Resources of Australia Ltd Annual Report 2023
ERA has commenced discussions with stakeholders,
including GAC, concerning any application for renewal
of the Jabiluka Mineral Lease. ERA acknowledges its
obligations under the Long-Term Care and Maintenance
Agreement (LTCMA) and confirms it has complied
with the wording and intent of the LTCMA, which has
protected the significant cultural heritage of the area.
In accordance with the LTCMA, the Jabiluka deposit
will not be developed by ERA without the approval of
the Mirarr Traditional Owners.
The activities underpinning this increase are the subject
of further studies referenced above and are also
potentially sensitive to external events such as rainfall.
In the Interim Entitlement Offer completed in May 2023,
ERA raised approximately $369 million (before costs),
which is expected to provide ERA with sufficient capital
to fund planned RPA rehabilitation expenditure through
to Quarter 3, 2024. Further funding is expected to be
required by ERA in 2024 to fund the next tranche of
planned rehabilitation works. This funding requirement
is expected to be addressed in the form of a material
equity raise in 2024.
ERA’s near-term strategic priorities include:
y
Execute rehabilitation scope of the Ranger
Project Area
y Continuing further studies following the 2022
Feasibility Study outcomes to provide a clear
rehabilitation plan
y
Secure a suitable funding solution to meet future
rehabilitation obligations in the form of a material
equity raise
y Moving to a programme management approach
including transitioning to an ERA-led execution
model
y
y
Progressing negotiations to extend the existing
Ranger authority beyond the current January
2026 deadline
Preserve the company’s undeveloped resources.
Energy Resources of Australia Ltd Annual Report 2023 25
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report FINANCIAL PERFORMANCE
Energy Resources of Australia Ltd (ERA
or the Company) incurred negative
cash flow from operating activities of
$223 million in 2023 compared to
negative $147 million in 2022.
Rehabilitation spend for the calendar year was
$211 million compared to $194 million in 2022.
Total cash resources of $726 million at 31 December
2023, comprised of $217 million in cash at bank
and $509 million cash held by the Commonwealth
Government as part of the Ranger Rehabilitation
Trust Fund. ERA has no debt financing in place
and $126 million in bank guarantees1.
ERA recorded a net loss after tax in 2023 of
$1388 million (inclusive of $1349 million net
rehabilitation adjustment), compared to a net loss
after tax of $161 million for the same period in 2022.
The 2023 result was mostly driven by an increase
in the forecast cost of rehabilitation of the Ranger
Project Area, resulting in an increase in the provision
for rehabilitation. This increase is primarily the result
of changes in estimate made following the receipt
of outcomes and data of the 2022 Feasibility Study
(received in October 2023).
As of 31 December 2023, revisions to the rehabilitation
cost estimate resulted in unfavourable adjustments
of $1,362.5 million compared to an unfavourable
adjustment of $62.2 million in 2022. The increase in
the 2023 rehabilitation provision was partially offset by
other non-cash adjustments in the estimates present
value due to the increase in the discount rate from
1.5% to 2% on 1 July 2023 of $13.3 million, as well
as $211 million of payment of rehabilitation in 2023
($194 million in 2022).
Further contributing to the 2023 result was that no
uranium oxide sales revenue was generated following
a cessation of uranium oxide sales from the Ranger
Project Area in 31 May 2022 compared to $35 million
revenue received in 2022. Revenue from continuing
operation mainly includes interest income and some
rental receipts.
Interest income for 2023 was $32.2 million, compared
to $9.3 million for 2022. The increase was driven by
both higher than average cash balances and higher
rates of interest in 2023 than the prior period, with the
weighted average interest rate received on term deposit
for the period being 4.69 per cent (2022: 1.53 per cent).
Operating costs for 2023 were lower than the
corresponding period in 2022. This was primarily
due to higher employee related cost in 2022 due to
redundancies following ERA’s transition to an Integrated
Project Management Team (IPMT) and higher 2022
consulting and legal charges related to organisational
changes and the setup of the IPMT. In addition, the
completion of all sales of remaining uranium inventories
in May 2022 resulted in no royalty and selling costs
in 2023, further positively impacting operating costs.
Operating costs are now only of a corporate nature.
Provision for Rehabilitation
At 31 December 2023, the ERA rehabilitation provision
was $2420 million2, a net increase of $1195 million from
the previous period.
Of the increase in the provision, approximately 85%
of the increase is attributable to rehabilitation activities
post 2027. An extension in schedule to achievement
of Final Landform (FLF) has been a significant factor
in driving additional estimated project costs. This
extension is primarily due to a reassessment of the time
taken to achieve Pit 3 consolidation, with a secondary
driver being the transition to lower technical risk Pit
3 capping methods, removing previously estimated
schedule synergies.
In addition to schedule, increased estimates in water
volumes requiring treatment have driven higher
variable costs of treatment against prior year estimates,
with the overall long-term performance of the water
treatment plant being below the planned performance
in ERA’s previously assumed water treatment strategy.
ERA will continue to pursue initiatives to improve the
performance of the water treatment plants in line with
its revised water treatment strategy. Estimated bulk
material movement costs have also been forecasted
to increase materially, due to higher unit costs than
previously estimated with some additional scope
relating to catchment conversion activities also driving
an increase in cost.
ERA expects to spend approximately $1.2 billion in
undiscounted nominal terms on rehabilitation activities,
including studies until the end of 2027. Activities
post 2027 and estimates of their cost, remain highly
uncertain. These activities remain subject to a number
of studies and are also potentially sensitive to external
events, as such, estimates of expenditure beyond 2027
are subject to further study work detailed below.
1
2
$125 million related to Ranger Project Area and $1 million related to Jabiluka.
31 December 2023 provision discounted at 2% per cent. This equates to an estimated $2961 million in undiscounted nominal terms
or $2667 million in undiscounted real terms.
26 Energy Resources of Australia Ltd Annual Report 2023
Rehabilitation Activities in 2023
During 2023, ERA incurred expenditure of $211 million
on rehabilitation activities. Continued progressive
rehabilitation of the Ranger Project Area achieved
several key milestones.
The capping of Pit 3 remains a critical path activity,
including the Pit 3 backfill approval application.
Wicking commenced in November 2022 in the
eastern end of Pit 3, and the final wick was installed
on 9th April 2023. The Pit 3 backfill approval application
was resubmitted to the Northern Territory governing
agency during the September 2023 Quarter. Final
approval of the backfill application is expected in the
later part of Quarter 1, 2024.
Preparation for the dry capping of Pit 3 has continued
to progress. Upon the successful dewatering of Pit 3,
the next step is to lay geofabric which will protect the
tailings during capping activities.
Progress was made during the year to mobilise
equipment to be used to accelerate the drying of
Pit 3 within the completed wicked zone. Additional
specialised drying equipment is expected to be
delivered early in 2024.
The Brine Squeezer process water treatment upgrade
work progressed, reaching completion during the
last Quarter of 2023, including regulatory approval to
operate. This upgrade will allow additional treatment
of process water from the Ranger Water Dam.
While performance against operational plan volumes
improved in 2023, treatment rates of process water
through the Brine Concentrator has continued below
the planned performance assumed in ERA’s previous
water management strategy. Progress is being
made in identifying and implementing strategies that
improve plant reliability and production consistency.
Although water quality has been a challenge this year,
high quality on specification distillate continues to be
produced. Process improvement initiatives continue
to be a key focus area.
During 2023, the Jabiru housing refurbishment program
continued to progress including the release of further
properties. ERA is progressively working on the transfer
properties to enable tenanting by third parties.
Overall, factors including a tight labour market and
remnant supply chain constraints, continue to impact
the project.
Outcomes of the 2022 Feasibility
Study
In May 2022, ERA commenced the 2022 Feasibility
Study. The 2022 Feasibility Study relates to a lower
technical risk rehabilitation methodology (primarily
relating to the subaerial (dry) capping of Pit3) and to
further refine the Ranger Project Area rehabilitation
execution scope, risks, cost and schedule.
As previously announced, ERA received outcomes
and data from the 2022 Feasibility Study in October
2023, that require more analysis and separate studies,
including but not limited to:
y
Investigating alternative lower cost solutions for
the management of water inventories requiring
treatment
y Developing sediment and erosion control
solutions to optimise release of water from
rehabilitated landforms
y
y
y
Evolution of the final landform design and
construction to optimise the movement of bulk
materials and appropriately manage late-stage
closure sequencing
Investigating alternative lower cost options for
site simplification and opportunities for cost
optimisation of post-closure monitoring and
maintenance
Value engineering and safety in design
investigations.
ERA will use the outcomes from the studies to optimise
Rehabilitation cost, schedule and risk.
Project Execution Approach
Over 2023, ERA embedded project execution, reporting
and governance systems through the mobilisation of
the IPMT with support from Bechtel. This was an interim
project execution approach to support rehabilitation
activities being done alongside the 2022 Feasibility
Study. This approach brought the best of Bechtel’s
project capability alongside ERA’s rehabilitation
expertise. The transition to the IPMT was completed
in March 2023.
As announced on 26 September 2023, ERA has
transitioned to a programme management approach.
This approach seeks to ensure that project scopes with
certainty can proceed in parallel to studies on remaining
project execution scopes, without certainty. This
approach is best supported by an ERA-led execution
model, which ERA will adopt in H1, 2024.
Extension of the Expiry date of ERA’s
tenure on the Ranger Project Area
ERA continues to work collaboratively with Gundjeihmi
Aboriginal Corporation (GAC), the Northern Land
Council (NLC), and relevant Government departments
to progress a new section 41 Authority (and associated
agreements) to extend its existing Ranger authority
beyond the original January 2026 deadline. This
will allow additional time for ERA to complete the
rehabilitation of the Ranger Project Area, including
long-term monitoring and maintenance.
3
In essence, the subaerial methodology involves Pit 3 drying and being capped subaerially (i.e. not under water).
Energy Resources of Australia Ltd Annual Report 2023 27
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report BUSINESS RISKS
A number of risks and uncertainties,
which are both specific to ERA and
of a more general nature, may affect
the future operating and financial
performance of ERA.
This section describes some, but not all, of the material
risks and uncertainties that may impact on ERA’s
financial performance or outcomes
Rehabilitation
Under applicable Australian and Northern Territory
government statutory requirements, ERA ceased
mining and processing activities at the Ranger Project
Area on 8 January 2021 and has progressed to
rehabilitating the site.
As stated in ERA’s 2022 annual report, on 24
November 2022, the Australian Parliament passed
amendments to the Atomic Energy Act 1953, allowing
additional time for ERA to complete the rehabilitation of
the Ranger Project Area, including long-term monitoring
and maintenance. ERA is required to negotiate new
authorities and agreements now the Act has been
amended. ERA is working with all stakeholders in
relation to a revised timeline for its rehabilitation
obligations, beyond the 8 January 2026 deadline.
In October 2023, ERA received outcomes and data
from the 2022 Feasibility Study. These outcomes have
been a key consideration in the increase in estimated
rehabilitation costs as reported on 31 December 2023.
These reported costs are a substantial increase on
estimates made as of 31 December 2022. While
ERA expects to spend approximately $1.2 billion in
undiscounted nominal terms on rehabilitation and
study activities to 2027, costs estimated beyond
this period are highly uncertain.
As a consequence, ERA has adopted a programme
management approach to the rehabilitation of the
Ranger Project Area. This approach seeks to ensure
that each stage of the project can reach appropriate
levels of certainty through further studies focussed
on selected closure scope elements that have a
material impact on closure schedule and cost.
Further studies will include but not be limited to:
y
Investigating alternative lower cost solutions for
the management of water inventories requiring
treatment
y Development of sediment and erosion control
solutions to optimise release of water from
rehabilitated landforms
y
y
Evolution of the final landform design and
construction to optimise the movement of bulk
materials and appropriately manage late-stage
closure sequencing
Investigating alternative lower cost options for
site simplification and opportunities for cost
optimisation of post-closure monitoring and
maintenance
y
Value engineering and safety in design
investigations.
The Ranger Rehabilitation Project is complex,
with many overlapping and interconnected aspects.
The total cost of rehabilitating the Ranger Project Area
is uncertain and requires matters involving estimation
and judgment. It is possible that, upon completion of the
study works outlined above, ERA’s rehabilitation costs
may be more (or less) than the current rehabilitation
provision estimated by the company. Increased
costs could result from factors beyond ERA’s control,
such as legal requirements, technological changes,
environmental conditions, labour costs and availability,
impact of pandemics including but not limited to
COVID-19, weather events and market conditions.
Any increase in rehabilitation costs is likely to have
a material adverse effect on ERA’s business and
its financial position and performance. There is no
certainty that the company could secure additional
funding in the future if it was required.
Post 2026 Tenure Risk
On 24 November 2022, the Atomic Energy Amendment
(Mine Rehabilitation and Closure) Bill 2022 was passed,
allowing ERA to apply to extend its existing Ranger
authority to enable the rehabilitation of Ranger Mine
to continue beyond the 8 January 2026 deadline.
For access to the site beyond 8 January 2026, a
new section 41 Authority is required and drafting of
agreements has commenced with the administrators
of the Atomic Energy Act 1953, the Australian
Government’s Department of Industry, Science
and Resources (DISR).
There is a risk that a new section 41 Authority may not
be agreed upon in the required timeframe or a material
change to terms that may adversely affect ERA’s
business and its financial position and performance.
Water Treatment and Injection of
Waste Brines
Overall long-term performance of the water treatment
plant has been below the planned performance in
ERA’s previously assumed water treatment strategy.
This has been a contributing factor to an increase
in estimated rehabilitation costs reported at 31
December 2023. ERA will continue initiatives to improve
performance of the water treatment plants in line with
its revised water treatment strategy. Further deficits
in this infrastructure against targets established in
the revised strategy may produce further delays in
completing the Ranger Rehabilitation Project.
To the extent that any of these initiatives cost more
than expected or ERA is required to implement further
initiatives (such as installing additional water treatment
infrastructure), the rehabilitation cost may increase
further.
28 Energy Resources of Australia Ltd Annual Report 2023
As a result of treating processed water, a waste stream
of contaminated salt is generated. The salt is ultimately
to be stored below tailings in Pit 3 by injecting the
brine through boreholes. This technology has been
commissioned but the long-term performance is yet to
be fully confirmed. An alternate method of salt disposal
would be required if disposing the salt in this way does
not prove viable. This would require additional capital
expenditure, which has not been allowed for in the
rehabilitation estimate or the resulting provision and
may not be available to ERA.
Tailings Consolidation
During the capping and backfill of Pit 3, the capped
tailings will consolidate and express process water that
will need to be collected and treated. The installation of
vertical wicks during 2023 has accelerated the rate of
tailings consolidation.
The timeframe for completion of tailings consolidation
is supported by a detailed tailings consolidation model
that is based on in-situ testing of site tailings. The
consolidation model’s prediction of the rate of tailings
consolidation is impacted by many factors, including
the characteristics of the tailings, the progression of
Pit 3 capping and backfill, and the ability to remove the
expressed water from the tailings.
Forecasts for the practical completion of tailings
consolidation and the end of process water collection
have been extended because of changes in Pit 3
capping method and schedule, changes in the assumed
degree to which expressed water needs to be collected
to satisfy environmental constraints, and other changes
in tailings model assumptions. This extension has
been a contributing factor to the increase in estimated
rehabilitation costs reported at 31 December 2023.
If tailings consolidation timeframes or the timeframe for
the end of process water collection extend further, then
it could have additional adverse impacts on the cost
and schedule of completing rehabilitation.
Bulk Material movement
Once Pit 3 is capped, large scale bulk material
backfill and landform shaping will occur. Bulk material
movements are sensitive to the volume of material which
is to be moved and the schedule of movement. Changes
in estimated bulk material movement unit rates against
previous estimates have been a contributing factor to
the increase in estimated rehabilitation costs reported
at 31 December 2023. There may be further material
impact on the rehabilitation cost or schedule if volumes
or costs of movement change.
Wet Season and Weather
The Ranger Project Area is subject to extreme and
contrasting weather conditions in the Northern Territory.
The extent of each wet season can have a significant
impact on ERA’s rehabilitation activities, including an
increase in process water inventories. Wet seasons
that significantly exceed long term averages will have
a material adverse effect on ERA’s ability to implement
water management and its ability to complete other
rehabilitation activities.
This may impact on schedule and cost, including
requiring additional process water treatment
capacity and may affect ERA’s financial position
and performance.
Ranger Rehabilitation Trust Fund
ERA is required to maintain the Trust Fund with the
Commonwealth Government. The Trust Fund is
intended to provide security against the estimated
costs of closing and rehabilitating the Ranger Project
Area. ERA is required to prepare and submit an
Annual Plan of Rehabilitation (Annual Plan) to the
Australian Government. Once accepted, the Annual
Plan is independently assessed and costed and the
amount to be provided by the company into the Trust
Fund is then determined.
As at 31 December 2023, ERA had $509 million in cash
held by the Australian Government in the Trust Fund.
Bank guarantees procured by ERA totalling $125 million
are held by the Government as additional security for
ERA’s rehabilitation obligations (an additional $1 million
is held as an allowance for Jabiluka rehabilitation).
These deposits and bank guarantees were
provided to the Australian Government based on
its review in February 2020 of the 44th Annual Plan
of Rehabilitation submitted by ERA (i.e. prior to
the reforecast of the cost of Ranger Project Area
rehabilitation), and subsequently reduced for an
interim payment of $57 million for rehabilitation works
completed from 9 January 2021 to 30 June 2022.
ERA has agreed on amendments to the Ranger
Government Agreement with the Australian
Government to introduce a clearer framework
for managing the amount of security held by the
Government and releasing funds from the Trust
Fund for completed rehabilitation works. However,
drawdown of funds under this framework will first
require re-evaluation of the security arrangement.
Given the increase in the cost of rehabilitating the
Ranger Project Area, ERA may be required to provide
additional security or funds in the Trust Fund.
ERA does not consider that it can rely upon drawdown
of any further cash from the Trust Fund before the
re-evaluation of the security arrangement is complete.
ERA’s ability to continue to access financial guarantees
can be influenced by many factors, including potential
future cash balance, cash flows and shareholder
support. Issuers of the bank guarantees have certain
pay and walk rights, and the guarantees are subject
to periodic reviews. Should the banks execute their
pay and walk rights or ERA is unable to access bank
guarantees, substantial additional cash would be
required to indemnify the banks or be deposited into
the Trust Fund. This is likely to have a material adverse
effect on ERA’s business and its financial position
and performance, as well as its ability to meet its
rehabilitation obligations.
The Trust Fund is disclosed as Government Security
Receivable in the Financial Statements.
Energy Resources of Australia Ltd Annual Report 2023 29
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
Access to Capital Risk
On 29 April 2016, the company entered into a
$100 million Loan Agreement with North Limited
(a wholly owned subsidiary of Rio Tinto) in support
of ERA’s rehabilitation obligations, should additional
funding ultimately be required.
On 6 October 2022, ERA agreed to enter into an
amended $100 million loan agreement with Rio Tinto
(Revised Credit Facility), under which loans of a
cumulative value of up to $100 million can be made
available to provide ERA with additional liquidity to
rehabilitate the Ranger Project Area. The Revised
Credit Facility contained a maturity date of 31 March
2023 unless additional funds were raised before that,
or unless extended by Rio Tinto. In addition, the
maturity date was subject to deferral for approximately
3 months if ERA is unable to repay the loan at that
time. The Revised Credit Facility provided ERA
with additional time to negotiate and implement a
future funding solution while providing assurance to
stakeholders that rehabilitation of the Ranger Project
Area will continue to be funded in the meantime.
A summary of the agreement was provided in the
announcement to the ASX dated 6 October 2022.
In May 2023, ERA confirmed that it had successfully
completed a 5 for 1 non-underwritten pro-rata
renounceable interim entitlement offer (Interim
Entitlement Offer) raising approximately $369 million
(before costs). This represented a 98.5% take up
of Entitlement by eligible Shareholders. Inclusive of
applications under the Shortfall Facility, the Interim
Entitlement Offer was fully subscribed and provided
total proceeds of $369 million (before costs). As set out
in the offer materials for the Interim Entitlement Offer,
part of the proceeds were used to settle the Revised
Credit Facility in full.
ERA will require additional funding for rehabilitation of
the Ranger Project Area, or otherwise beyond existing
cash resources and expected future cash flows. There
can be no assurance that additional funding will be
available on acceptable terms, or at all. Any inability to
obtain additional capital or to monetise assets would
have a material adverse effect on ERA’s ability to meet
its rehabilitation obligations as well as its business and
its financial position and performance. If ERA does
not have sufficient funding to support its continued
operations and rehabilitation of the Ranger Project
Area, ERA may be unable to meet its liabilities as and
when they fall due and its ability to continue as a going
concern may be impacted.
Regulators and Stakeholders
The Mine Closure Plan (the Plan) is subject to ongoing
review and refinement, with ERA required to submit
an updated plan for regulatory approval each year. In
addition, regulatory approvals are required to carry out
certain rehabilitation activities. ERA’s ability to complete
the rehabilitation program in a timely and cost-effective
manner will be at risk if these regulatory approvals are
not obtained or are obtained with amended conditions.
The Plan builds on more than 20 years of scientific
work undertaken on the progressive rehabilitation
at Ranger and was developed by reference to the
Western Australian Mine Closure Plan Guidelines (in
the absence of relevant Northern Territory closure plan
guidelines). It includes proposed closure criteria for the
Ranger mine which addresses the key themes of the
final landform, radiation, water, flora and fauna, soils
and cultural heritage.
ERA first released the Plan to the public in June 2018,
following an intensive stakeholder engagement process
with all key stakeholders that commenced with a
draft plan in December 2016. Key stakeholders who
provided feedback on the draft and subsequent annual
updates included the Gundjeihmi Aboriginal Corporation
and Northern Land Council (as representatives of the
Mirarr Traditional Owners), and Northern Territory and
Australian government agencies.
In December 2023, the latest updated Plan was
released and will continue to be updated annually
in close consultation with Traditional Owner
representatives, regulators, and key stakeholders.
ERA has submitted the updated plan to the relevant
Northern Territory and Australian ministers for approval
in compliance with the authorisation.
Jabiru was transitioned to an Aboriginal township
lease under Section 19A of the Aboriginal Land Rights
(Northern Territory) Act 1976 (Cth) in June 2021.
ERA has remained a major tenant in the town under
an interim agreement with the Gundjeihmi Aboriginal
Corporation Jabiru Town (GACJT). ERA’s licence to
occupy the Jabiru properties has been extended to
31 December 2024. The terms and any associated
costs of any future license extension to allow ERA
to continue to remain in Jabiru are uncertain and will
be subject to the approval of GACJT. The process
to undertake extensive rectification of the Jabiru
properties, transition the houses to third parties, and
find alternative accommodation for ERA personnel
may result in higher costs than currently projected
by ERA.
General Regulatory Risk
Uranium mining in Australia is extensively regulated
by Australian, state and territory governments. The
areas of uranium mining that are regulated include
exploration, development, production, transport, export,
taxes and royalties, labour standards, occupational
health, waste disposal, protection and rehabilitation
of the environment, mine reclamation, mine safety,
toxic and radioactive substances, and native title.
The approval processes for uranium mining are more
onerous, and therefore more costly, than for the mining
of other minerals.
Government actions in Australia, and other countries or
jurisdictions in which ERA has interests, could impact
ERA, including new or amended legislation, guidelines
and regulations about the environment, uranium or
nuclear power sectors, competition policy, native title,
and cultural heritage.
Operational aspects that may be affected include
land access rights, granting licences and other
tenements, an extended mine life and development
approvals. Future legislation and changes in the
regulatory framework could cause additional expense,
capital expenditures, restrictions and delays in the
development of ERA’s assets – the extent of which
cannot be predicted. Any government action may
30 Energy Resources of Australia Ltd Annual Report 2023
and tailings construction, among other infrastructure,
which would add fixed costs to the operation, further
materially challenging the Ranger 3 Deeps Project’s
viability. ERA has also completed backfill works on the
Ranger 3 Deeps decline.
Given the above, no work is being conducted on further
development options for the Ranger 3 Deeps deposit.
Environmental Risk
A condition of the section 41 Authority granted to ERA is
that the company must rehabilitate the Ranger Project
Area to establish an environment similar to the adjacent
areas of Kakadu National Park, so the rehabilitated
area could be incorporated into Kakadu National Park,
if that is the opinion of the Minister with the advice of
the Supervising Scientist, and if the Traditional Owners
wish. While substantially complete and agreed upon,
certain closure criteria relating to environmental matters
require careful management.
The updated Mine Closure Plan for the Ranger Project
Area still requires final approvals and agreement
from stakeholders, including the Minesite Technical
Committees. There is a risk that the process to agree
on the environmental conditions will give rise to
additional rehabilitation obligations that may impact
costs and/or schedule.
The ability for ERA to meet its Ranger closure and
rehabilitation obligations requires careful management
of various environmental conditions into the future,
including preventing:
y
y
y
pond and process water being discharged to the
environment
impact of surface water on groundwater under
the site and surrounding environment
impact of salt accumulation in dry watercourses
during the dry season
y weeds, feral animals and fire from the Kakadu
National Park encroaching on the Ranger
Project Area
y
release, spillage and impact on the surrounding
environment of hazardous materials, such as
radioactive material, diesel, and acid.
If these environmental conditions are not satisfactorily
managed, ERA’s ability to complete the rehabilitation
program in a timely and cost-effective manner will be
at risk and ERA’s business and financial position and
performance may be materially impacted.
require increased capital, rehabilitation or other
expenditures and could prevent or delay certain
activities by ERA, which could have a material adverse
effect on ERA’s business and its financial position
and performance, as well as its ability to meet its
rehabilitation obligations.
Jabiluka Mineral Lease
ERA holds title to the Jabiluka Mineral Lease. The
Jabiluka Mineral Lease (being an undeveloped
property as noted in ERA’s 2023 Annual Report) is
currently held subject to the Long-Term Care and
Maintenance Agreement with the Mirarr Traditional
Owners. The Jabiluka deposit cannot be developed
without the approval of the Traditional Owners under
this agreement. There is currently no such approval to
develop the Jabiluka deposit. It is uncertain that this
approval will be forthcoming and, by extension, that the
Jabiluka deposit will be developed. Should this approval
not eventuate in the future, the Jabiluka Mineral Lease
would face full impairment.
The initial term of the Lease is due to expire in
August 2024. ERA has commenced discussions with
stakeholders, including the GAC, concerning any
application for renewal of the Lease which is due in
2024. The Jabiluka Mineral Lease makes provision for
a further term not exceeding 10 years provided that
ERA has complied with all of its obligations under the
Jabiluka Mineral Lease and the Mining Act 1980 (NT).
There is a risk that the renewal will not be granted.
If the renewal is granted, a renewal of the Jabiluka
Mineral Lease beyond the further term of up to 10 years
is uncertain and would require the Minister to exercise
his or her discretion.
The valuation of Jabiluka requires a high degree of
judgement. The carrying value ($90 million) of the
Jabiluka Mineral Lease as set out in ERA’s 2023 Annual
Report, considers the above uncertainties. It also
considers other underlying assumptions concerning the
valuation of the Jabiluka Mineral Lease, including the
probability of future development, uranium oxide prices
such as term contract price premiums in the future,
foreign exchange rates, production and capital costs,
discount rate, ore and mineral resources, lease tenure
renewal (August 2024), and development delays. Any
change to ERA’s underlying assumptions regarding
the Jabiluka Mineral Lease may result in a further
impairment that could adversely affect ERA’s
financial position.
Ranger 3 Deeps
On 8 January 2021, ERA ceased to be authorised to
conduct mining operations in the Ranger Project Area,
accordingly development of Ranger 3 Deeps is not an
authorised activity. ERA does not have the authority
to mine Ranger 3 Deeps and is not pursuing such
authority.
In addition to requiring an authorisation to mine Ranger
3 Deeps, the project would need to be economically
viable for it to be developed. ERA has historically
assessed the economics of the Ranger 3 Deeps project
to be unviable. Considering further work undertaken
to rehabilitate the Ranger Project Area, the project
would now be required to support a standalone mill
Energy Resources of Australia Ltd Annual Report 2023 31
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report FUTURE SUPPLY
Evaluation and Exploration
Jabiluka Reserves and Resources
In 2023, no evaluation, exploration expenditure or
processing activities were performed by ERA in and
around the Ranger Project Area site, including the
Ranger 3 Deeps project or on the Jabiluka Mineral
Lease area.
Ranger 3 Deeps Reserves and
Resources
No work is being conducted to further develop options
for the Ranger 3 Deeps deposit, in line with ERA
ceasing recognition of the Ranger 3 Deeps Mineral
Resource in 2020 and the cessation of processing
operations in 2021.
Ranger Reserves and Resources
ERA has no remaining Ranger Reserves and
Resources due to the conclusion of processing
activities under the Ranger Authority.
The Jabiluka Mineral Resource consists of 137,100
tonnes of uranium oxide at a cut-off grade of 0.2%
U3O8. It is amongst the largest, high-grade undeveloped
uranium deposits in the world.
Jabiluka will not be developed by ERA without the
approval of the Mirarr Traditional Owners in accordance
with the Jabiluka Long Term Care and Maintenance
Agreement.
Governance
ERA’s Competent Person (as defined in the following
pages) is a consultant of ERA. The ERA Board
oversees the governance of Resources and Reserves.
This includes the annual review and approval of the
publicly reported Ore Reserves and Mineral Resources
Statement. Internal approval of Ore Reserves and
Mineral Resources for ERA, is the responsibility of
the Chief Executive and estimates are carried out
by a Competent Person, as defined by the Joint Ore
Reserve Committee (JORC) Code 2012. The ERA
Competent Person uses judgment in carrying out
estimates of Ore Reserves and Mineral Resources for
ERA, as defined by the JORC Code 2021, including
the use of external experts as required.
ERA 2023 Mineral Resources
Jabiluka Mineral Resources
Measured
Indicated
Sub-total Measured
and Indicated
Inferred Resources
Total Resources
As at 31 December 2023
CUT OFF GRADE
0.20% U308
As at 31 December 2022
CUT OFF GRADE
0.20% U308
(MT)
% U308
T U308
(MT)
% U308
T U308
1.21
13.88
15.09
10.00
25.10
0.89
0.52
0.55
0.54
0.55
10,800
72,200
82,900
54,000
137,100
1.21
13.88
15.09
10.00
25.10
0.89
0.52
0.55
0.54
0.55
10,800
72,200
82,900
54,000
137,100
32 Energy Resources of Australia Ltd Annual Report 2023
Assessment of Jabiluka Mineral
Resource
The Competent Person has assessed the Jabiluka
Mineral Resource reporting as required by the JORC
2012 Code and has considered the following facts
and assumptions in this appraisal.
1.
2.
3.
The continuing role of nuclear energy as a
decarbonised energy source and impact on the
long-term uranium market as world economies
seek to decarbonise and mitigate the effects of
climate change over the next 20 to 50 years.
The 2005 Long Term Care and Maintenance
Agreement specifically requires approval by
the Mirarr Traditional Owners and confirms that
Jabiluka will not be developed without the approval
of the Traditional Owners, which is consistent with
the values of ERA.
Should the JORC code be updated, or the industry
move to a more prescriptive view on Reasonable
Prospects for Eventual Economic Extraction
(RPEEE), the continued reporting of the Jabiluka
Mineral Resource may change in the future.
4.
The Rio Tinto Group (ERA major shareholder) has
elected in 2022 to no longer report the Jabiluka
mineralisation as a Mineral Resource.
Competent persons
As required by the Australian Securities Exchange, the
above tables contain details of other mineralisation
that has a reasonable prospect of being economically
extracted in the future, but which is not yet classified
as Proven or Probable Reserves. This material is
defined as Mineral Resources under the 2012 edition
of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC
2012 code). Estimates of such material are based
largely on geological information with only preliminary
consideration of mining, economic and other factors
and are not precise calculations. While in the
judgement of the Competent Person there are realistic
expectations that all or part of the Mineral Resources
will eventually become Proven or Probable Reserves,
there is no guarantee that this will occur as the result
depends on further technical and economic studies and
prevailing economic conditions in the future.
The information in this announcement that relates to
Jabiluka Mineral Resources is based on information
compiled by geologist Stephen Pevely who is a part-
time consultant of ERA. Stephen Pevely is a member of
the Australasian Institute of Mining and Metallurgy and
has sufficient experience that is relevant to the style of
mineralisation, type of deposit under consideration and
activity being undertaken to qualify as a Competent
Person as defined in the JORC 2012 code. Stephen
Pevely, who is a part time consultant of ERA, consents
to the inclusion in this announcement of the matters
based on their information in the form and context in
which it appears.
Energy Resources of Australia Ltd Annual Report 2023 33
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report HEALTH AND SAFETY
One of ERA’s core values is maintaining
the safety and wellbeing of our people.
By working together, ERA believe that
injuries, incidents, and occupational
illnesses can be prevented, and everyone
shall go home safe and healthy each day.
Health, Safety and Environment (HSE) was a high
priority for ERA in 2023, with significant investment
made by ERA in planning to ensure our workforce
went home safely each day. New project HSE routines
and rituals were established to identify and control
HSE risks including critical risk schedules, daily leader
HSE debriefs and daily information sheets. These new
tools added to already established programs including
the leadership success program, mental wellness
programs, PhysioAssist, leadership in the field and a
range of health and safety workshops.
ERA’s safety goals, accountabilities and systems can
be found in the ERA Health, Safety and Environment
Management System. The key performance measure
of safety at ERA is the All Injury Frequency Rate
(AIFR). AIFR measures how often a recordable injury
occurs every 200,000 work hours and considers lost
time injuries, restricted work injuries and medical
treatment cases.
In 2023, ERA celebrated achieving another year free
of recordable injuries, resulting in the third consecutive
year with an AIFR of 0.0.
Previous year's results have been:
y
y
y
y
y
y
y
AIFR 2023 – 0.00
AIFR 2022 – 0.00
AIFR 2021 – 0.00
AIFR 2020 – 0.53
AIFR 2019 – 1.07
AIFR 2018 – 0.56
AIFR 2017 – 1.17
Mental Health and Well-being
Staff mental health and wellbeing was a high priority
for ERA in 2023 as the business embedded project
capability. Onsite access to an employee assistance
program continued to help support mental health within
the workforce, which provided face-to-face counselling.
ERA’s Peer Support Program continued to be available
to the workforce, with many new peer supporters being
trained and appointed into this valued role during 2023.
There is a zero-tolerance approach to bullying and
harassment at ERA and proactively guided appropriate
workplace behaviours are implemented to prevent
behavioural escalations.
ERA provided training to leaders on the topic of
psychological safety, including why this is important
to creating safe, supportive work environments where
everyone thrives, and poor behaviour has difficulty
existing. All staff continue to have access to the
myVoice program to report occurrences of bullying
and harassment. The myVoice program helps ERA to
effectively investigate reports to ensure employees are
supported and ERA continues to be a safe workplace.
Safety Maturity Model
The Safety Maturity Model (SMM) is a global Rio Tinto
initiative that drives behaviours and activity to deliver
effective health, safety, and environment performance
across the four pillars: leadership and engagement;
risk management; work planning and execution; and
learning and improvement.
ERA achieved a SMM score of 4.3 in 2023,
demonstrating an increase in last year’s results and
improved HSE culture across the business. To achieve
this ERA leveraged the project HSE experience of
our Integrated Project Management Team (IPMT),
in combination with ERA’s knowledge of the safety
maturity model spanning a 6-year period. Key
SMM initiatives imbedded across 2023 were a daily
information sheet (DIS), communicating timely HSE
messages to the workforce, daily field leadership
debrief meetings, a strong culture of incident reporting
and implementing learnings from near-miss events,
and wide-spread use of HSE recognition programs.
34 Energy Resources of Australia Ltd Annual Report 2023
ERA did not have any designated workers (workers
who may be exposed to radiation that exceeds
5 millisieverts (mSv) per year) in 2023, due the
nature of the rehabilitation works being undertaken
on the project.
The below table provides a summary of maximum
and mean annual radiation doses received by workers
at the Ranger Project Area over the past 12 months
from the third Quarter of 2022. Reported doses have
increased slightly from the 2022 annual report due to
an increase in standard dose coefficients (updated by
the Australian Government regulators in mid-2022
to adopt changes made by international authorities).
DESIGNATED
WORKERS (mSv)
NON-DESIGNATED
WORKERS (mSv)
Timeframe
Mean
Max
Mean
Max
2022 Q3
2022 Q4
2023 Q1
2023 Q2
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.0
0.21
0.18
0.22
0.06
0.42
0.08
0.135
The full radiation doses received by workers in 2023
will be reported in the Annual Ranger Mine Radiation
Protection and Atmospheric Monitoring Report.
Process Safety
In 2023, ERA continued a control-based process
safety approach with almost 100 controls being verified
each month to ensure ERA does not experience a
high consequence, low probability incident, protecting
our people, people of the Jabiru region and the
environment. Verification of process safety controls
involved a large cross-section of the business, from
operators and maintainers working within the Brine
Concentrator, to members of the ERA Executive (ExCo)
team completing Critical Control Monitoring Plans.
Emergency Response
ERA’s Emergency Response Team are trained to
respond and provide support to onsite and offsite
incidents, including site evacuations, fires, and vehicle
accidents. In 2023, ERA provided support to the local
government emergency services for multiple off-site
incidents. ERA maintained a well-trained team of
Emergency Services Personnel across 2023, ready to
support emergency responses for various work fronts,
including those within confined spaces, work at
heights and work over water.
Radiation Monitoring
ERA monitors radiation at the Ranger Project Area in
accordance with the Company’s Radiation Policy and
Radiation Management Plan. All radiation dose results
continue to be reviewed internally by ERA and external
regulators. Quarterly occupational radiation dose data
for designated workers at the Ranger Project Area are
provided to the Australian Government’s Australian
Radiation Dose Register (ANRDR).
In 2023, preliminary analysis of the available data on
radiation doses received by workers at the Ranger
Project Area remain well under the national and
international dose limits and the natural background
radiation levels. In 2023, ERA maintained compliance
with all relevant state and Australian regulatory
requirements for radiation safety and security.
Energy Resources of Australia Ltd Annual Report 2023 35
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report 36 Energy Resources of Australia Ltd Annual Report 2023
REGULATORY FRAMEWORK
The Alligator Rivers Region Advisory Committee
(ARRAC) provides a formal forum for consultation
on matters relating to the effects of uranium mining
activities on the environment in the region. Committee
members include representatives of the Northern
Territory Government, Australian Government, NLC,
Aboriginal associations, mining companies (including
ERA), West Arnhem Regional Council, Northern
Territory Environment Centre and other members who
may be appointed by the Australian Government’s
Minister for the Environment. Further information on
ARRAC can be found at: https://www.dcceew.gov.au/
science-research/supervising-scientist/communication/
committees/arrac
The Alligator Rivers Region Technical Committee
(ARRTC) also oversees the nature and extent of
research being undertaken to protect and restore the
environment from any effects of uranium mining in the
Alligator Rivers Region.
The 10 ARRTC members include independent
scientists nominated by the Federation of Australian
Scientists Branch and Technological Societies with
the remaining representatives being drawn from the
OSS, Northern Territory Government, Uranium Equities
Ltd, NLC, Parks Australia and an environmental
non-government organisation. Further information on
ARRTC can be found at: https://www.dcceew.gov.au/
science-research/supervising-scientist/communication/
committees/arrtc
International and Australian
Certification
ERA maintains international certification (ISO 14001)
of its Health, Safety and Environment Management
System, which includes the Company’s Water
Management System.
ERA also maintains Australian certification (AS4801)
of its Health, Safety and Environment Management
System including the Ranger Radiation
Management System.
Uranium mining activities in Australia are
strictly regulated by the Australian and
state or territory governments.
The purpose of these regulations is to ensure
performance and compliance of all uranium activities
in a range of critical areas. These include health and
safety, process safety, safely managing toxic and
radioactive substances, waste disposal, transport
safety, export controls, protecting and rehabilitating the
environment, native title, exploration and development,
taxes and royalties, labour standards and mine
reclamation.
International agreements designed to prevent nuclear
proliferation also govern the mining and export
of uranium.
Exports are subject to strict safeguards and conditions
to ensure Australian uranium is only used for
peaceful purposes.
Regulation of ERA’s Operations
Australian and Northern Territory legislation provides
the regulatory framework for all of ERA’s activities,
including rehabilitation, monitoring,
and closure.
ERA’s activities on the Ranger Project Area and
Jabiluka Mineral Lease are closely supervised and
monitored by key statutory bodies and stakeholder
organisations including:
y
y
y
Northern Territory Department of Industry,
Tourism and Trade (DITT), the Australian
Government Department of Industry, Science
and Resources (DISR), the Office of the
Supervising Scientist (OSS), the Gundjeihmi
Aboriginal Corporation (GAC) and the Northern
Land Council (NLC) representing the Mirarr
Traditional Owners
Alligator Rivers Region Advisory Committee
(including non-government organisation
representatives)
Alligator Rivers Region Technical Committee
(including non-government organisation
representatives).
The Ranger and Jabiluka Minesite Technical
Committees – made up of representatives from ERA,
DITT, OSS, GAC and NLC (with DISR as observers)
and are the key forums for approvals on environmental
matters relating to Ranger and Jabiluka.
Energy Resources of Australia Ltd Annual Report 2023 37
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report 38 Energy Resources of Australia Ltd Annual Report 2023
FINANCIAL
REPORT
CONTENTS
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Statement of Comprehensive Income
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information (Unaudited)
2023 ASX Announcements (Unaudited)
Ten Year Performance (Unaudited)
40
64
65
72
73
74
75
76
110
111
116
119
120
Energy Resources of Australia Ltd Annual Report 2023 39
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report DIRECTORS’ REPORT
Directors
The persons who served as directors of ERA throughout 2023 and until the date of this Directors’ Report are:
Directors
• Richard (Rick) Dennis was appointed as Independent Non-Executive Chair on 31 January 2023
•
Brad Welsh, having been initially appointed as Acting Chief Executive on 4 October 2021, was
subsequently appointed as Chief Executive and Managing Director on 18 February 2022
Jacques van Tonder was appointed as Non-Executive Director on 29 May 2020 and resigned as Non-
Executive Director on 31 December 2023
•
• Rosemary Fagen was appointed as Non-Executive Director on 1 February 2022
•
Justin Carey was appointed Interim Chair on 6 October 2022 and reverted to Non-Executive Director on 31
January 2023
• Hon. Ken Wyatt was appointed as Independent Non-Executive Director on 19 December 2022
Stuart Glenn was appointed as Independent Non-Executive Director on 3 February 2023
•
Alfred (Alfie) Grigg was appointed as Non-Executive Director on 1 January 2024.
•
Details of the qualifications, experience and special responsibilities of the current Directors of ERA are set out on
pages 40 to 43 of this report.
Meetings of Directors
RICK DENNIS
BRAD WELSH
The number of Directors and committee meetings held, and the number of meetings attended by each of the
Directors of the Company during the financial year are shown below.
INDEPENDENT NON-EXECUTIVE
DIRECTOR AND CHAIR
CHIEF EXECUTIVE AND
MANAGING DIRECTOR
BCom, LLB, CA
LLB, MMINENG
Mr Dennis was appointed as an independent Non-
Executive Director in November 2022 and Independent
AUDIT
Chair on 31 January 2023.
AND RISK
Committee
COMMITTEE6
appointments
DIRECTORS6
Mr Dennis is Chair of the Audit and Risk Committee
and Independent Board Committee and a member
of the Remuneration Committee and
Disclosure Committee.
12/12
4/4
12/12
-
R Dennis1
B Welsh
K Wyatt
S Glenn2
J Carey3
-
10/12
Mr Dennis had 35 years with global professional
services firm Ernst & Young and was Queensland
Managing Partner from 2001-2007. He held several
executive and board roles at EY, including Chief
Operating Officer in Oceania, and Deputy Chief
Operating Officer and Chief Financial Officer for the
Asia-Pacific practice from 2010-2014 where he was
responsible for overseeing the financial and operational
-
integration of the Australian and Asian member firms.
11/12
11/12
10/12
6/12
4/4
4/4
-
J van Tonder4
R Fagen
A Grigg5
-
-
SUSTAINABILITY
COMMITTEE6
REHABILITATION
COMMITTEE6
Mr Welsh was appointed as Acting Chief Executive of
ERA in October 2021 and appointed as Chief Executive
and Managing Director in February 2022.
REMUNERATION
COMMITTEE6
Mr Welsh is a member of the Rehabilitation Committee,
Sustainability Committee and Disclosure Committee.
10/10
Mr Welsh is from the Muruwari tribe in north-western
-
New South Wales, and grew up in the Aboriginal
community of Redfern, Sydney. Prior to joining ERA,
7/10
Mr Welsh was the Chief Advisor Closure Strategy
Non-Managed Assets with Rio Tinto.
OTHER6,7
2/2
2/2
2/2
8/8
2/2
-
-
-
-
8/10
8/8
-
-
-
2/2
5/6
2/2
Mr Welsh’s previous roles include Chief Advisor
-
-
Indigenous Affairs with Rio Tinto and Acting General
Manager of the Weipa bauxite operation in Northern
-
Queensland which made Mr Welsh the first Indigenous
general manager operations in Rio Tinto’s history.
Mr Welsh is currently a non-executive director of ASX
-
listed NIB Holdings Ltd, and a director of NIB Health
Funds Limited.
4/5
-
-
-
-
-
-
Mr Dennis is currently non-executive Chair of ASX
listed AF Legal Group Limited and Motorcycle Holdings
Note 1 Appointed as a Director 23 November 2022. Appointed as Chair effective 31 January 2023.
Limited, and a non-executive director of Cettire Limited,
Note 2 Appointed as a Director 3 February 2023.
Note 3 Mr Carey attended meetings in his role as Interim Chair effective 6 October 2022 – 31 January 2023.
Apiam Animal Health Limited and Step One
Note 4 Mr van Tonder resigned as a Non-Executive Director, effective 31 December 2023.
Clothing Limited.
Note 5 Mr Grigg was appointed as a Director on 1 January 2024.
Note 6 Number of meetings attended / maximum the Director was eligible to attend.
Note 7 Other meetings include meetings of the Independent Board Committee and Disclosure Committee.
Mr Dennis is dual qualified in law and commerce.
Board committee membership key
©
Committee Chair
Remuneration Committee
Audit & Risk Committee
Sustainability Committee
Rehabilitation Committee
Following the resignation of Independent Non-Executive Directors Peter Mansell, Shane Charles and Paul Dowd, all
Board Committees were suspended on 13 October 2022. The Rehabilitation Committee was re-established on 16
December 2023. The Independent Board Committee (IBC) was re-established on 31 January 2023 and remaining
Committees were re-established on 16 February 2023.
40 Energy Resources of Australia Ltd Annual Report 2023
HON. KEN WYATT
STUART GLENN
INDEPENDENT NON-EXECUTIVE
DIRECTOR
INDEPENDENT NON-EXECUTIVE
DIRECTOR
AM, JP, BED, DIPED, DIPT
BSC, CSEP, MAICD
Hon Ken Wyatt AM JP was appointed as an
independent Non-Executive Director in
December 2022.
Mr Wyatt is Chair of the Remuneration Committee and
a member of the Independent Board Committee and
Sustainability Committee.
As a proud Noongar, Yamatji and Wongi man, Mr Wyatt
brings extensive experience and a unique perspective
to the Board of ERA. Mr Wyatt served as the Member
for Hasluck in the Federal Parliament from 2010 to
2022. He was the first Indigenous Australian appointed
to the Commonwealth Ministry and first Aboriginal
Australian to serve in Cabinet when he was appointed
Minister for Indigenous Australians (2019-2022).
Mr Wyatt served as Australia’s first Indigenous Minister
for Indigenous Australians, where he was able to
secure the historic National Agreement on Closing the
Gap and established the Indigenous Voice. He also
pioneered the National Roadmap on Indigenous Skills,
Jobs and Wealth Creation and was instrumental in the
Commonwealth Government securing the copyright
to the Aboriginal Flag.
Not only has Mr Wyatt had an extensive career in
health, education, Aboriginal Affairs and Aboriginal Land
issues before entering politics, he has also made an
enormous contribution to the wider community.
This was recognised in 1996 when he was awarded
the Order of Australia in the Queen’s Birthday Honours
list and in 2000 the Centenary of Federation Medal for
‘his efforts and contribution to improving the quality of
life for Aboriginal and Torres Strait Islander people and
mainstream Australian society in education and health.’
Mr Glenn was appointed as an independent
Non-Executive Director in February 2023.
Mr Glenn is Chair of the Rehabilitation Committee
and a member of the Independent Board Committee
and Audit and Risk Committee.
Mr Glenn has served as a professional Company
Director for over 10 years where he is focused on
asset management, project delivery and business
improvements through better project management,
increased data analytics and the introduction of
accurate and timely reporting and controls. Prior to
this, he had a successful executive management
career, both in Australia and overseas in the Transport
Infrastructure and Energy Sectors and held senior
executive roles at Parson’s Brinckerhoff International
(now known as WSP) who provides professional
engineering, project management and program
management services to global infrastructure projects.
Mr Glenn has held Chair and non-executive director
roles in the Infrastructure, Oil & Gas, Planning and
Energy sectors. He is currently the Chairman of Nukon
Pty Ltd (a subsidiary of Sage Group Ltd) and a
non-executive director of Sage Group Holdings Pty Ltd.
Mr Glenn is a graduate of Columbia University and
Murdoch University and is a member of the
Australian Institute of Company Directors.
Energy Resources of Australia Ltd Annual Report 2023 41
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report JUSTIN CAREY
ROSEMARY FAGEN
NON-EXECUTIVE DIRECTOR
BCom
Mr Carey was appointed as a Non-Executive Director in
August 2019. Mr Carey was Interim Chair from October
2022 to 31 January 2023.
Mr Carey is a member of the Rehabilitation Committee,
Disclosure Committee and Audit and Risk Committee.
Mr Carey brings extensive financial, technical and
corporate experience, with over 25 years’ experience
in a variety of commercial finance roles, with 20 of
those years’ experience within the mining industry.
In that time, Mr Carey spent two and a half years
as CFO for Oyu Tolgoi LLC based in Mongolia.
Since leaving Mongolia, Mr Carey has held various
roles within the Rio Tinto corporate finance team,
including as finance officer for the Group’s corporate
entities and leading the Group’s planning and
forecasting processes as the General Manager
Financial Planning & Analysis.
Mr Carey has served on several Rio Tinto entity
boards and brings extensive experience in
corporate governance and control processes.
NON-EXECUTIVE DIRECTOR
MSc Biochemistry, MBA/GDM, AGSM GAICD
Ms Fagen was appointed as a Non- Executive Director
in February 2022.
Ms Fagen is Chair of the Sustainability Committee
and a member of the Remuneration Committee.
Ms Fagen was the Head of Operational Excellence,
People; Office of the Chief Operating Officer of Rio
Tinto until January 2024. As part of the Chief Operating
Officer’s core team, Rosemary drove transformational
change to the business with the introduction of the
Rio Tinto Safe Production System. She provided the
strategic approach to change management, ensuring
the business is resourced, ready, empowered and
engaged to bring together proven tools, rituals and
leading practices into the one framework.
Ms Fagen holds post-graduate degrees in biochemistry
and business administration. Ms Fagen has a wide
variety of experience including overseeing Copper &
Diamonds’ human resources strategies, processes and
functions as Vice President, People & Organisation.
Prior to this, Ms Fagen was Vice President, Human
Resources Rio Tinto’s Energy group from 2010 to 2014.
Before joining Rio Tinto, Ms Fagen held positions in
the aviation sector including Executive Vice President,
Human Resources for Qatar Airways and held senior
human resources leadership positions with Qantas
Group and AWA Limited.
42 Energy Resources of Australia Ltd Annual Report 2023
ALFIE GRIGG
JACQUES VAN TONDER
NON-EXECUTIVE DIRECTOR
NON-EXECUTIVE DIRECTOR
LLB(HONS), BBUS
MBAProjMgt, MMaint&AssMgt, GAICD
Mr van Tonder joined the ERA Board as a
Non-Executive Director in May 2020 and resigned
on 31 December 2023.
Mr van Tonder is a member of the Rehabilitation
Committee.
Mr van Tonder joined Rio Tinto more than 20 years
ago and has held senior operational management roles
at Palabora, Robe Valley, Cape Lambert Operations,
Hope Downs 4 and Argyle. Mr van Tonder has been
a senior leader in the Rio Tinto Group Technical
functional team since 2017 and has been instrumental
in leading the Asset Management global transformation
programme as head of the Asset Management Centre
of Excellence.
Mr Grigg joined the ERA Board as a Non-Executive
Director in January 2024.
Mr Grigg is currently Chief Counsel – Minerals at Rio
Tinto, supporting Rio Tinto’s strategic growth activities
in the battery minerals sector. Mr Grigg joined Rio Tinto
in 2007 and has held a range of senior legal, regulatory
and commercial roles across corporate and operational
areas of Rio Tinto.
Prior to joining the ERA Board, Mr Grigg was a non-
executive director on the board of the NYSE and TSE
listed Turquoise Hill Resources (TRQ) (through which
Rio Tinto holds its interest in the Oyu Tolgoi mine in
Mongolia) from 2020 until Rio Tinto’s 100% acquisition
of the minority interests of TRQ in December 2022 and
it’s subsequent delisting, as well as being director and
chair of a number of incorporated and unincorporated
joint venture boards.
Mr Grigg holds a Bachelor of Laws (Hons), and a
Bachelor of Business (Management) from Monash
University. He is a member of the Australian
Institute of Company Directors.
Energy Resources of Australia Ltd Annual Report 2023 43
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report Executive Committee
BERNARD TOAKLEY
PROJECT DIRECTOR
Mr Toakley joined Energy Resources of Australia in
October 2022 as Project Director.
Prior to joining ERA, Mr Toakley held senior project
leadership positions with major energy companies
and contractors both nationally and internationally.
RICHARD PREST
CHIEF FINANCIAL OFFICER AND
JOINT COMPANY SECRETARY
BE Chemical, MBA, AAICD
Mr Prest was appointed as Chief Financial Officer
in March 2021 and appointed as joint Company
Secretary in December 2021.
Mr Prest brings substantial financial leadership,
business development and transformation skills
to ERA. Mr Prest has spent more than 30 years
in the resources sector and brings previous
experience as a CFO, General Manager of
Finance and Director for Rio Tinto including
Gove Operations in the Northern Territory.
Mr Prest has a degree in Chemical Engineering
and a Master of Business Administration.
STEPHANIE SO
JOINT COMPANY SECRETARY
BCom, LLB, Grad Dip CA, Grad Dip Applied
Corp. Gov.
Ms So was appointed as Joint Company Secretary
in April 2023.
Ms So has over a decade of governance
experience working with private, public and listed
companies across a number of industries, and
has extensive experience in company secretarial,
board and corporate governance matters. Ms So
was previously a principal listings adviser at the
ASX where she had extensive involvement in
the oversight of listed entities and specialised in
ASX Listing Rule compliance including policy and
development, initial public offerings, capital raisings
and other corporate activities.
Ms So is dual qualified in law and commerce and
is a Fellow of the Governance Institute of Australia.
44 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
Directors
The persons who served as directors of ERA throughout 2023 and until the date of this Directors’ Report are:
• Richard (Rick) Dennis was appointed as Independent Non-Executive Chair on 31 January 2023
•
Brad Welsh, having been initially appointed as Acting Chief Executive on 4 October 2021, was
subsequently appointed as Chief Executive and Managing Director on 18 February 2022
Jacques van Tonder was appointed as Non-Executive Director on 29 May 2020 and resigned as Non-
Executive Director on 31 December 2023
•
• Rosemary Fagen was appointed as Non-Executive Director on 1 February 2022
•
Justin Carey was appointed Interim Chair on 6 October 2022 and reverted to Non-Executive Director on 31
January 2023
• Hon. Ken Wyatt was appointed as Independent Non-Executive Director on 19 December 2022
Stuart Glenn was appointed as Independent Non-Executive Director on 3 February 2023
•
Alfred (Alfie) Grigg was appointed as Non-Executive Director on 1 January 2024.
•
Details of the qualifications, experience and special responsibilities of the current Directors of ERA are set out on
pages 40 to 43 of this report.
Meetings of Directors
The number of Directors and committee meetings held, and the number of meetings attended by each of the
Directors of the Company during the financial year are shown below.
Committee
appointments
DIRECTORS6
AUDIT
AND RISK
COMMITTEE6
REMUNERATION
COMMITTEE6
SUSTAINABILITY
COMMITTEE6
REHABILITATION
COMMITTEE6
R Dennis1
B Welsh
K Wyatt
S Glenn2
J Carey3
R Fagen
J van Tonder4
A Grigg5
12/12
12/12
10/12
11/12
11/12
10/12
6/12
-
4/4
-
-
4/4
4/4
-
-
-
2/2
-
2/2
-
-
-
2/2
2/2
-
-
2/2
2/2
-
-
-
-
-
8/8
-
8/8
5/6
4/5
-
OTHER6,7
10/10
-
7/10
8/10
-
-
-
-
Note 1 Appointed as a Director 23 November 2022. Appointed as Chair effective 31 January 2023.
Note 2 Appointed as a Director 3 February 2023.
Note 3 Mr Carey attended meetings in his role as Interim Chair effective 6 October 2022 – 31 January 2023.
Note 4 Mr van Tonder resigned as a Non-Executive Director, effective 31 December 2023.
Note 5 Mr Grigg was appointed as a Director on 1 January 2024.
Note 6 Number of meetings attended / maximum the Director was eligible to attend.
Note 7 Other meetings include meetings of the Independent Board Committee and Disclosure Committee.
Board committee membership key
©
Committee Chair
Remuneration Committee
Audit & Risk Committee
Sustainability Committee
Rehabilitation Committee
Following the resignation of Independent Non-Executive Directors Peter Mansell, Shane Charles and Paul Dowd, all
Board Committees were suspended on 13 October 2022. The Rehabilitation Committee was re-established on 16
December 2023. The Independent Board Committee (IBC) was re-established on 31 January 2023 and remaining
Committees were re-established on 16 February 2023.
Energy Resources of Australia Ltd Annual Report 2023 45
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
DIRECTORS’ REPORT
Interests of Directors
The interests of each Director in the share capital of the Company and its related body corporates as at 12 March
2024 are shown below:
DIRECTORS
B Welsh
S Glenn
J Carey
R Fagen
J van Tonder1
A Grigg
ENERGY RESOURCES
OF AUSTRALIA LTD
ORDINARY SHARES
RIO TINTO LIMITED
ORDINARY SHARES
RIO TINTO LIMITED
CONDITIONAL INTERESTS
IN ORDINARY SHARES
-
-
-
-
-
-
6,763
149
8,044
40,266
-
14,491
2,347
-
2,009
8,539
6,562
2,665
NB
Note 1 Mr van Tonder resigned as a Non-Executive Director, effective 31 December 2023
Mr Dennis and Mr Wyatt do not hold shares or conditional interests in shares in Rio Tinto Limited.
46 Energy Resources of Australia Ltd Annual Report 2023
These fees are comprised of a base fee and any fees
payable to non-executive Directors for their
membership on established committees of the Board.
ERA does not pay retirement or post-employment
benefits to non-executive Directors, however statutory
superannuation contributions are paid to non-
executive Directors.
In addition, from time to time, the Board may approve
that non-executive Directors receive additional fees
for services provided outside the established
committee processes.
The following principles are applied in determining the
remuneration of non-executive Directors:
•
•
The responsibilities of, and time spent by,
the non-executive Directors on the affairs of
ERA, including preparation time
Acknowledgement of the personal risk
borne as a Director
• Comparison with professional market rates
of remuneration to remain competitive with
the market having regard to companies of
similar size and complexity
The desire to attract Directors of a high
calibre with appropriate levels of expertise
and experience.
•
At the 2023 Annual General Meeting, a resolution to
increase the limit of aggregate remuneration for non-
executive Directors of ERA to $1,100,000 was
approved with 99.97% of shares voting in favour.
At the 2023 Annual General Meeting, the 2022
Remuneration Report was approved with 99.99% of
shares voted in favour. The aggregate amount of non-
executive Directors’ remuneration paid in 2023 was
approximately $1,022,000 inclusive of statutory
superannuation.
DIRECTORS’ REPORT
Remuneration report
The Remuneration Report is set out under the
following main headings:
A.
B.
C.
D.
E.
F.
G.
Board oversight of remuneration
Principles used to determine non-executive
Directors’ remuneration
Principles used to determine executive
remuneration
Details of remuneration
Executive service agreements
Share based compensation
Additional information
The information provided in the Remuneration
Report has been audited by the Company’s
independent auditor as required by section
308(3C) of the Corporations Act 2001.
A Board oversight of
remuneration
The Remuneration Committee is responsible for
reviewing and where appropriate making
recommendations to the Board in respect of the
following matters:
• Remuneration framework and policies
(including key performance indicators) for
the Company’s senior executives
• Remuneration and performance of the
Company’s senior executives
• Remuneration of the Company’s non-
executive Directors
• Remuneration disclosures to be made by
the Company
• Other relevant matters identified as
requested by the Board.
The Remuneration Committee Charter is available
at the Corporate Governance section of ERA’s
website.
B Principles used to determine
non-executive Directors’
remuneration
Fees and payments to non-executive Directors reflect
the demands which are made on, and the
responsibilities of, the non-executive Directors. The
Remuneration Committee reviews and makes
recommendations to the Board regarding non-
executive Directors’ remuneration.
Energy Resources of Australia Ltd Annual Report 2023 47
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
DIRECTORS’ REPORT
The non-executive Directors’ fees were last reviewed
by the Board in November 2023. The annual fees for
non-executive Directors for 2023 (excluding
superannuation) were as follows:
2023
2022
Chair
$203,593
$194,826
Non-Executive
Director
Audit and Risk
Committee Chair1
Audit and Risk
Committee Member1
Sustainability
Committee Chair1
Sustainability
Committee Member1
Remuneration
Committee Chair1
Rehabilitation
Committee Chair1
Rehabilitation
Committee Member1
Independent Board
Committee Chair1
Independent Board
Committee Member1
$113,107
$108,237
$27,146
$25,977
$14,998
$14,352
$23,074
$22,080
$14,998
$14,352
$23,074
$22,080
$23,074
$14,998
$23,074
-
-
-
$14,998
$14,352
Note 1 Fees are payable in addition to Chair and non-executive
Director fees.
The Board also confirmed that all non-executive
Director and Committee fees should increase by a
percentage equal to the average increase awarded to
employees across the Company until the next detailed
review is conducted.
C Principles used to determine
executive remuneration
The Remuneration Committee is responsible for
reviewing executive remuneration and where
appropriate making recommendations to the Board.
The Corporations Act 2001 and relevant Accounting
Standards require disclosures in respect of “key
management personnel” being those persons having
authority and responsibility for planning, directing and
controlling the activities of the Company.
The key management personnel are the senior
executives of the Company reporting directly to the
Chief Executive in addition to the Directors.
Throughout this Remuneration Report the key
management personnel who are not Directors are
collectively referred to as “senior executives”.
As the Company is a member company of the Rio
Tinto Group, it generally implements the remuneration
policies and procedures determined by the Rio Tinto
Remuneration Committee and applied to senior
management personnel across the wider Rio Tinto
Group to determine the remuneration of the Chief
Executive and senior executives. As a member of the
Rio Tinto Group, ERA’s Chief Executive and Chief
Financial Officer are seconded from Rio Tinto and are
hence drawn from the talent pool of executives in the
wider Rio Tinto Group. It is the view of the
Remuneration Committee (which has been endorsed
by the Board) that a company of ERA’s size, scope
and remote location would have significant difficulty in
attracting executives of the calibre necessary to
ensure superior performance or in retaining them for
significant periods if this arrangement was not in
place. Under these circumstances, the Board believes
that the general application of the Rio Tinto
remuneration framework to ERA’s senior executives,
with appropriate review by the Company’s
Remuneration Committee, is of benefit to ERA.
For the purposes of assessing the appropriate level of
remuneration, the Australian resources sector is
considered the most relevant comparator group.
Additional references are also made to other relevant
supplementary comparator groups. Typically, base
salaries are positioned at the median of these
comparator groups, while incentive plans are
designed with the potential to deliver total
remuneration outcomes across the full market range
according to business and individual performance.
The related costs of these programs are recognised in
the Company’s financial statements.
Executive remuneration, including base salary and
short and long term incentive plan awards and other
terms of employment are reviewed annually having
regard to the evaluation of individual and business
performance against goals set at the start of the year,
global economic conditions and relevant comparative
information. As well as base salary, remuneration
packages may include fringe benefits such as medical
insurance, car, rent and other allowances,
superannuation, retirement entitlements and short and
long term incentives.
The annual performance evaluation and management
process for 2023 included formal consultation
between the Chair (based on the Remuneration
Committee’s review and recommendations) and the
Rio Tinto Chief Executive Australia, regarding the
Chief Executive of the Company, and between the
Remuneration Committee and the Chief Executive of
the Company regarding the senior executives.
An annual performance evaluation of the Chief
Executive and senior executives was undertaken in
2023.
The executive pay and reward framework is designed
to provide a total remuneration package which is
competitive in the market, aligns total remuneration
with delivered individual and short and long term
business performance, strikes an appropriate balance
between fixed and variable components, links variable
components to the achievement of challenging
individual and business performance targets, and
ensures the attraction, motivation and retention of the
high calibre senior executives required to lead the
Company.
48 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
The executive pay and reward framework has four
components:
•
•
•
Base salary and benefits
Short term incentive plans
Long term incentive plans through
participation in the Rio Tinto Equity
Incentive Plan (EIP), share-based
remuneration, including management share
awards (MSA), performance share awards
(PSA) and bonus deferral awards (BDA)
where applicable
• Other remuneration such as
superannuation.
Performance and non-performance related
remuneration
Total remuneration is a combination of the fixed,
performance and service related elements described
in this report. The short and long term incentives are
the variable components of the total remuneration
package and are therefore “at risk”. They are tied to
achievement of specific business measures, individual
performance and service. Other components are
referred to as “fixed” as they are not at risk.
The long term incentive plans are designed to provide
a target expected value of 30% of base salary for the
senior executives and the Chief Executive, delivered
in any one year through Rio Tinto Management Share
Awards (MSAs) and Performance Share Awards
(PSAs). In 2023 only MSAs were awarded to the ERA
Chief Executive and senior executives.
Excluding post-employment and non-monetary
benefits, the proportion of total direct remuneration,
assuming maximum award levels and maximum
levels of performance, provided by way of variable at
risk components as at 31 December 2023 for the
Chief Executive and senior executives was 51%. The
actual proportion of total direct remuneration provided
by way of variable performance related components
will differ from these percentages depending on
measured Company, Rio Tinto and individual
performance and the current blend of share plans.
Base salary
Base salary is set at a level consistent with market
expectations within the wider Rio Tinto
remuneration framework and may be delivered as
a mix of cash and prescribed non-financial
benefits. It is targeted broadly at the median of
companies of similar size, global reach and
complexity, including other large natural resource
companies. Base salary is reviewed annually and
adjusted taking into account the individual and
Company performance, global economic
conditions, role responsibilities, an assessment
against comparator groups, internal relativities
and base salary budgets applying to the broader
employee population.
Short term incentive plan
The short term incentive plan provides a bonus
opportunity and is designed to support the overall
remuneration policy by focusing management
personnel on calendar year performance against
challenging individual and business targets.
Short term incentive performance conditions
Individual performance is reviewed against relevant
targets and objectives annually. The Chief Executive
and senior executives (excluding the Project Director)
of the Company have 40% of their performance-
based bonus based on business measures, with the
remainder based on individual measures.
The bonus payments shown as remuneration relate to
performance in 2023.
The Company’s business performance measures for
2023 used in the determination of short-term incentive
plan payments were:
•
Safety - All Injury Frequency Rate, and
measures relating to Safety Maturity &
Major Safety Incidents
• Rio Tinto Group Financials - underlying
•
earnings and cashflow
Business – Brine concentrator performance
and improvement, timely completion of the
2022 Feasibility Study, cultural and
stakeholder metrics and the 2023 Funding
Strategy.
Incentive plans
As previously outlined, the Remuneration Committee
believes that the general application of the Rio Tinto
remuneration framework (including the EIP to ERA’s
Chief Executive and senior executives, with
appropriate review by the Remuneration Committee)
is of benefit to the Company. During 2023, the
Remuneration Committee reviewed the position for
future years.
Awards under the EIP can take the form of:
• Conditional Awards - under which the
participant receives shares for free
automatically to the extent the award vests
(which may be subject to the achievement
of performance conditions)
Forfeitable Shares - under which the
participant receives free shares on grant,
which must be given back to the extent the
award lapses
•
• Other forms of awards are permitted under
the EIP and may be used in the event the
Rio Tinto Groups remuneration approach
changes.
Inclusion of other award types is to provide for
sufficient flexibility in the future should the Group’s
remuneration approach change during the life of the
Plan. Awards may also be granted or settled on
vesting as cash awards.
An award may be granted on the basis that it will
normally only vest to the extent that a performance
condition, set by the Rio Tinto People &
Energy Resources of Australia Ltd Annual Report 2023 49
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
DIRECTORS’ REPORT
Remuneration Committee at the time of grant, is
satisfied by Rio Tinto. However, awards representing
deferred bonuses will not be subject to performance
conditions. The vesting of awards granted to
executive directors (other than bonus deferred
awards) will always be subject to a performance
condition, except as otherwise permitted by Rio
Tinto’s Remuneration Policy. During the reporting
period these incentive plans were not part of ERA’s
executive pay and reward framework.
Conditional awards will be granted on the basis that
the participant will receive dividend equivalents for the
vesting period (in additional shares or cash) when and
to the extent that, the award vests or is exercised. The
dividend equivalent will be calculated based on the
aggregate value of dividends paid during the vesting
period unless the Rio Tinto People & Remuneration
Committee decides to use a different approach.
When applicable, awards will normally vest, to the
extent that any performance condition is met, at the
end of a period set when the award is granted or the
end of the period over which any performance
condition is tested. Shares will be issued or
transferred to the participant on vesting. Vesting may
be delayed where a participant is subject to any
external investigation or similar circumstances.
If Rio Tinto was subject to a change of control, awards
will vest subject to the extent to which any
performance condition has been satisfied.
Alternatively, participants may be allowed or required
to exchange their awards for equivalent awards over
shares in the acquiring company. If awards vest, the
awards will be pro-rated unless the Rio Tinto People
& Remuneration Committee decides otherwise.
However, no pro rating will apply to deferred bonus
awards or on performance share awards where the
participant leaves more than three years after the
grant.
Awards
The current intention remains that awards will be
made under the EIP in the form of Conditional Awards
in line with the Rio Tinto Group’s Remuneration
Policy.
Performance Share Awards
Performance Share Awards (PSA), provide a
conditional right to Rio Tinto shares to eligible senior
management personnel within the Rio Tinto Group.
Award levels under the EIP are at the discretion of Rio
Tinto and the ERA Remuneration Committee.
The conditional awards only vest if the performance
condition set by the Rio Tinto People & Remuneration
Committee is satisfied by Rio Tinto, although the Rio
Tinto People & Remuneration Committee retains
discretion to satisfy itself that satisfaction of the
performance condition is a genuine reflection of the
underlying performance of the business. Prior to the
vesting of conditional awards, Rio Tinto’s Total
Shareholder Return (TSR) performance against the
performance condition is calculated independently by
Deloitte.
Subject to the Rio Tinto People and Remuneration
Committee approval, awards vest based on the Rio
Tinto Group’s TSR performance over a five-year
performance period. The vesting of the PSA granted
in 2019 was subject equally to relative TSR against
the S&P Global Mining Index (transitioned from the
EMIX Global Mining Index following its
decommissioning on 31 July 2023), and the MSCI
World Index.
Management Share Awards
Management Share Awards (MSA) are
conditional grants of Rio Tinto shares to eligible
employees of the company which will vest, wholly
or partly, upon expiry of a three-year vesting
period. Award levels under the EIP are at the
discretion of Rio Tinto.
Other share plans
All employees of the company may participate in Rio
Tinto share purchase plans applicable at particular
locations. Under the plan (known as and referred to
later in this report as myShare), employees may
acquire shares up to the value of US$5,250 (or local
currency equivalent) per year, capped at 15% of their
base salary. Each share purchased will be matched
by Rio Tinto and paid by ERA (currently at a ratio of
one for one) providing the participant holds the shares
and remains employed at the end of the three-year
vesting period. Further details are at Note 30 to the
Financial Statements.
Share dealing policy
The participation of the Chief Executive and senior
executives in the Rio Tinto share plans involving the
awarding of Rio Tinto securities at a future date, and
any grants of shares and options under these plans, is
subject to and conditional upon compliance with the
terms of the ‘Rio Tinto Securities Dealing Policy’
(Dealing Rules). The Dealing Rules for dealing
expressly prohibit the limiting of exposure to economic
risk in relation to such securities, and are available on
the Rio Tinto website at www.riotinto.com.
50 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
D Details of remuneration
Details of the remuneration of each non-executive and executive Director and each of the senior executives in
respect of their services to the Company are set out in the following section.
Non-executive Directors of Energy Resources of Australia Ltd
SHORT TERM BENEFITS
POST EMPLOYMENT BENEFITS
DIRECTORS
FEES
($000)
CASH
BONUS
($000)
NON-CASH
BENEFITS
($000)
SUPER-
ANNUATION
($000)
TOTAL
($000)
R Dennis1
K Wyatt
J Carey
R Fagen
S Glenn2
J van Tonder3
P Mansell4
S Charles4
P Dowd4
Total 2023
Total 2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2023
2022
2022
2022
2022
251
11
161
5
127
107
134
98
161
127
118
185
123
120
961
767
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
1
17
-
-
-
-
-
17
-
-
19
13
12
61
45
278
12
178
5
127
107
134
98
178
127
118
204
136
132
1,022
812
Note 1 Appointed as a Director 23 November 2022. Appointed as Chair effective 31 January 2023.
Note 2 Appointed as a Director 3 February 2023.
Note 3 Resigned as a Director 31 December 2023.
Note 4 Resigned as a Director 6 October 2022.
Executive Director and senior executives
Set out below is an overview of the remuneration paid to the Executive Director and senior executives in 2023.
This includes details of the key elements of remuneration and a summary of total remuneration for 2023.
Brad Welsh
Base salary
Mr Welsh’s base salary was reviewed annually with reference to the underlying performance of ERA and the Rio
Tinto Group, global economic conditions, role responsibility, individual performance, an assessment against relevant
comparator groups, internal relativities and base salary budgets applying to the broader employee population.
On 31 December 2023, Mr Welsh’s base salary was $416,551 (31 December 2022 $400,530).
Energy Resources of Australia Ltd Annual Report 2023 51
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DIRECTORS’ REPORT
Short term incentive plan objectives
The following individual objectives were set for Mr Welsh for 2023:
•
Prevent high consequence safety and environmental events. Demonstrate health, safety and environment
leadership and lead sustained improvement in health and safety and performance
•
Embed project capability within ERA to support transition to a suitable project execution model
• Deliver key Ranger Rehabilitation milestones including wicking completion and Feasibility Study, and
identify strategies for enhanced water management and in sourcing of Brine Concentrator operations
Provide high quality support to the Independent Board committee in respect a funding solution to meet
future rehabilitation obligations
Progress negotiations on the Atomic Energy Act 1953 amendments to allow ERA sufficient time to carry out
rehabilitation
•
•
• Deliver an enhanced safety and project culture including implementation of Everyday Respect outcomes
and improved employee engagement.
Short term incentive plan outcomes
Mr Welsh’s achievement against his 2023 individual objectives was assessed against individual and business criteria.
Mr Welsh’s 2023 short term incentive plan appraisal relates to his performance in the role of ERA Chief Executive
and was assessed at 96.8% out of 200%. The individual performance component representing 60% and business
performance representing 40%, with an appraised score of 80% and 122% respectively.
Detailed outcomes are below:
•
•
•
•
•
•
All Injury Frequency Rate to 0.00 (2022; 0.00)
Enhanced project capability embedded and program management model adopted
Key Rehabilitation milestones met
Funding solution successfully completed in May 2023
Atomic Energy Act 1953 Amendment negotiations were constructively progressed throughout 2023
Everyday Respect initiatives including camp liveability enhancements completed, improved employee
engagement demonstrated through internal survey outcomes.
Long term incentive plan awards granted
Award levels are set to incentivise executives to provide sufficient retention for the executive team and to contribute
to the competitiveness of the overall remuneration package. The value of the MSAs granted to Mr Welsh in 2023,
based on the expected value calculations performed by independent advisors, was 30% of base salary. The award is
not subject to any performance conditions.
Total remuneration
The table below provides a summary of Mr Welsh’s total remuneration disclosed for ERA for 2023. The purpose of
this table is to enable shareholders to better understand the actual remuneration received and to provide an overview
of the actual outcomes of the Company’s remuneration arrangements.
(STATED IN $’000)
Base salary paid1
STIP cash bonus
LTIP share based payments
Superannuation
Other benefits2
Total remuneration
% change from previous year
% of maximum STIP cash bonus awarded
% of maximum STIP cash bonus forfeited
2023
2022
390
121
116
87
88
802
(12%)
48%
52%
379
118
92
92
226
907
-
49%
51%
Note 1 Base salary reported exclusive of all superannuation contributions. Base salary disclosed above is net of $24,300 which is Superannuation Guarantee
Charge (SGC) but appears as Reportable employer super contributions (RESC). Salaries are reviewed with effect from 1 March, with the next review
due March 2024.
Note 2 Other benefits include accommodation, relocation, vehicle and other allowances and Company paid superannuation above statutory requirements that is
taken as cash. Other benefits in 2022 included various relocation and accommodation payments which were not applicable during 2023.
52 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
Senior executives
Base salary (excluding superannuation)
Base salaries are reviewed annually, with reference to the underlying performance of ERA, the Rio Tinto Group and
the individual, global economic conditions, role responsibility, an assessment against relevant comparator groups and
base salary budgets applying to the broader employee population.
At the end of 2022 and 2023, the base salaries of the Company’s senior executives were:
BASE SALARY $000
Richard Prest1
Bernard Toakley2
Forrest Egerton3
Alan Tietzel4
2023
387
657
-
-
2022
CHANGE
372
560
308
401
4%
15%
-
-
Note 1 Appointed as Chief Financial Officer in March 2021.
Note 2 Appointed as Project Director in October 2022 on a services contract with a daily rate of $2,800. In addition, a bonus of 15% of consultancy services paid
is payable upon successful completion of the project. Actual paid salary excluding bonus payment reported above in 2023 and annualised salary
equivalent excluding bonus payment in 2022.
Note 3 Retrenched as General Manager Closure in November 2022.
Note 4 Retrenched as General Manager External Relations in July 2022.
.
Short term incentive plan objectives and outcomes
The individual objectives set out below relate to the 2023 financial year (with the corresponding short term incentive
plan Award paid in 2024).
SUMMARY OF INDIVIDUAL OBJECTIVES
Richard Prest
Prevent high consequence safety and environmental events
•
• Demonstrate health, safety and environment leadership and contribute to sustained improvement in
health and safety performance
Provide leadership in embedding enhanced project execution capability
•
•
Provide high-quality support to the Independent Board committee for an interim equity raise
• Deliver efficient and effective commercial support services to ERA, including IT, and site support
•
services
Effective leadership and stakeholder engagement around key activities to support a successful Jabiru
town transition
• Deliver excellence in accounting, performance reporting and financial forecasting
• Demonstrate behaviours that align with the values of safety, teamwork, respect, integrity and excellence
Energy Resources of Australia Ltd Annual Report 2023 53
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DIRECTORS’ REPORT
A summary of the individual targets and performance for each of the Company’s senior executives (other than the
Chief Executive) for the 2023 financial year (with the corresponding short term incentive plan Award paid in 2024) is
set out in the table below.
MEASURES
Richard Prest
Site/Business Measure
Financial
Health and Safety
Individual
Total
WEIGHT (%)
RESULT
(OUT OF
200%)
WEIGHTED
RESULT (%)
15.0
10.0
15.0
60.0
113.4
89.6
152.0
100.0
17.0
9.0
22.8
60.0
100.0
-
108.8
Note 1 B Toakley appointed as Project Director in October 2022 as a contractor. No STIP to be paid under the consulting services contract.
54 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
A summary of the individual targets and performance for each of the Company’s senior executives (other than the
Chief Executive) for the 2022 financial year (with corresponding short term incentive plan Award paid in 2023) is set
out in the table below.
MEASURES
Richard Prest
Business and financial performance
Health and Safety
Individual
Total
Forrest Egerton2
Business and financial performance
Health and Safety
Individual
Total
Alan Tietzel3
Business and financial performance
Health and Safety
Individual
Total
WEIGHT (%)
RESULT
(OUT OF
200%)
WEIGHTED
RESULT (%)
25.0
15.0
60.0
100.0
25.0
15.0
60.0
100.0
25.0
15.0
60.0
100.0
44.8
180.0
120.0
-
-
-
-
-
-
-
-
-
11.2
27.0
72.0
110.2
-
-
-
-
-
-
-
-
Note 1 B Toakley appointed as Project Director in October 2022 as a contractor. No STIP to be paid under the consulting services contract.
Note 2 Retrenched as General Manager Closure in November 2022
Note 3 Retrenched as General Manager External Relations in July 2022
Long term incentive plan awards
Award levels are set to incentivise executives to provide sufficient retention for the executive team and to contribute
to the competitiveness of the overall remuneration package. The value of the awards granted to the Company’s
senior executives (other than the Chief Executive) in 2023, based on the fair value calculations performed by
independent advisors, was 30% of base salary.
Bernard Toakley, Project Director is on a services contract and not eligible to participate in the short term incentive
plan or long term incentive plan but is eligible for a project completion bonus equivalent to 15% of his consultancy
fees.
Energy Resources of Australia Ltd Annual Report 2023 55
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DIRECTORS’ REPORT
Executive Director and senior executives total remuneration
SHORT TERM BENEFITS
POST EMPLOYMENT BENEFITS
CASH
SALARY
($000)
CASH
BONUS6
($000)
OTHER7
($000)
RETENTION
PAYMENTS8
TERMINATION
PAYMENTS4,5
SUPER-
ANNUATION
PENSION
LONG TERM
INCENTIVES
($000)
($000)
($000)
($000)
Executive Director
B Welsh1
2023
2022
Senior executives
2023
2022
2023
2022
2022
2022
R Prest2
B Toakley3
F Egerton4
A Tietzel5
Total 2023
Total 2022
390
379
363
366
728
148
262
228
1,481
1,383
121
118
126
122
32
-
-
-
279
240
88
226
60
59
-
-
160
54
148
499
-
-
-
-
-
-
242
-
-
-
-
-
-
-
-
946
963
-
242
1,909
87
92
79
79
-
-
56
50
166
277
TOTAL
($000)
802
907
750
738
869
170
1,737
1,380
116
92
122
112
109
22
71
85
347
2,421
382
4,932
Note 1 Performance related cash bonus: 48% awarded in 2023, 52% forfeited. 49% awarded in 2022, 51% forfeited.
Note 2 Performance related cash bonus: 54% awarded in 2023, 46% forfeited. 55% awarded in 2022, 45% forfeited.
Note 3 Mr Toakley’ cash salary amount is representative of consultancy fees paid on his services contract commencing 24 October 2022. Consultancy fees
represent the actual number of days worked times contracted daily rate of $2,800 inclusive of superannuation of 10.5% for the first half of the 2023 and
11% for the second half. Completion bonus (long term incentives) is accrued but not payable until successful completion of the project, it represents 15%
of his consultancy services paid.
Note 4 As a result of a restructure of the company’s executive committee, Mr Egerton’ role with the company was made redundant in November 2022. The
termination payment described above comprised unused leave, a payment of six months’ salary in lieu of notice pursuant to the terms of his employment
contract, and payments made in accordance with the company’s redundancy policy which included a service payment, an ex gratia payment, pro rata
payment for short term incentive plan bonus and pro rata vesting of long term incentive plan. No performance related cash bonus was granted for
services to ERA in 2023 and 2022.
Note 5 As a result of a restructure of the company’s executive committee, Mr Tietzel’ role with the company was made redundant in July 2022. The termination
payment described above comprised unused leave, a payment of six months’ salary in lieu of notice pursuant to the terms of his employment contract,
and payments made in accordance with the company’s redundancy policy which included a service payment, an ex gratia payment, pro rata payment for
short term incentive plan bonus and pro rata vesting of long term incentive plan. No performance related cash bonus was granted for services to ERA in
2023 and 2022.
Note 6 Performance and related bonuses disclosed in 2023 relate to services in 2023 (equally bonuses disclosed in 2022 relate to services in 2022).
Note 7 Other benefits include relocation, accommodation, travel, vehicle, other allowances, Company paid superannuation above statutory requirement that is
taken as cash excluding cash paid site allowances which are treated as cash salary.
Note 8 Retention Payments were a conditional discretionary cash bonus aimed at retaining employees considered critical to ERA delivering on its commitments
in relation to stockpile processing and rehabilitation of the Ranger Project Area until 31 December 2020.
The value of share based awards has been determined in accordance with the recognition and measurement
requirements of AASB 2 ‘Share-based Payment’. The fair value of awards granted under the Rio Tinto 2018 Equity
Incentive Plan and myShare has been calculated at their dates of grant using valuation models provided by external
consultants Lane Clark and Peacock LLP.
56 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
E Executive service agreements
For reasons explained on page 48, as a member of the Rio Tinto Group, ERA’s Chief Executive and Chief
Financial Officer are seconded from Rio Tinto under agreements between ERA and Rio Tinto.
The secondment agreements provide for the Chief Executive and Chief Financial Officer to work under the
direction of and be responsible to the ERA Board. They include acknowledgements from Rio Tinto to the effect
that the relevant executive’s duties as an officer of ERA will require him or her to, among other things, act in good
faith in the best interests of ERA as a whole and that, in doing so, the executive will be taken to be performing his
or her duties to the relevant Rio Tinto employing company.
As part of the process of appointment of a senior executive under this secondment arrangement, the relevant
executive is provided with a written statement relating to their responsibilities and duties as an officer of the
Company, which they are required to sign for their appointment.
Under the secondment agreements, during the secondment period ERA must pay amounts in respect of the
relevant executive’s base salary and other entitlements in accordance with their employment agreements with Rio
Tinto. The employment agreements provide for participation of the relevant executives in the Rio Tinto short and
long term incentive plans upon achieving performance and service goals. The employment agreements may also
provide for other benefits, including medical insurance, vehicle and accommodation allowances, relocation
allowances and expenses and travel allowances.
In setting the executives’ remuneration and any rewards based on performance, the Rio Tinto employing
company is required to have regard to the recommendations of the ERA Board, and to consult with the ERA
Chair regarding any material changes to remuneration and benefits. Changes to the terms of an employment
agreement must be consistent with those made generally for all employees of the Rio Tinto employer, and ERA’s
Chair must be promptly informed of any material changes.
Each of the secondment agreements with Rio Tinto provide that ERA can end the secondment by giving Rio Tinto
three months’ notice at any time. Likewise, Rio Tinto can end the executive’s secondment by giving three months’
notice to ERA.
Key provisions of the employment agreements of the Chief Executive and senior executives relating to
remuneration are as set out below.
B Welsh – Chief Executive and Managing Director
Term of agreement – Open, commenced as Acting Chief Executive, 4 October 2021
Commenced as Chief Executive and Managing Director, 18 February 2022
Base salary (excluding superannuation, allowances and other benefits) as at 31 December 2023 of $416,551 per
annum. Maximum short term incentive bonus upon meeting performance criteria is 60% of base salary. Base salary
and short term incentive targets are to be reviewed annually. Termination by the employee is three months’ notice in
writing or by the employer giving six months’ notice or equivalent payment in lieu of notice.
R Prest – Chief Financial Officer
Term of agreement – Open, commenced 8 March 2021
Base salary (excluding superannuation, allowances and other benefits) as at 31 December 2023 of $386,804 per
annum. Maximum short term incentive bonus upon meeting performance criteria is 60% of base salary. Base salary
and short term incentive targets to be reviewed annually. Termination by the employee is three months’ notice in
writing or by the employer giving six months’ notice or equivalent payment in lieu of notice.
B Toakley – Project Director
Term of agreement – 3 years with options of a further 1 year plus 1 year extension at the discretion of the Company,
commenced 24 October 2022
Base salary equivalent of $657,334 (excluding superannuation, allowances and other benefits), representing
consultancy fees paid on an agreed services contract commencing 24 October 2022. Base salary represents the
actual number of days worked times contracted daily rate of $2,800 less superannuation 10.5% for the first half of the
2023 and 11% for the second half. A completion bonus of $420 per day (excluding GST) is payable where the
Company determines in its sole and absolute discretion that the Consultant has satisfactorily completed all Services
in accordance with the Contract. Termination of the contract by the Company giving the Consultant not less than 30
days' notice of its intention to do so.
Energy Resources of Australia Ltd Annual Report 2023 57
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report DIRECTORS’ REPORT
The Chief Executive and senior executives who are permanent employees are also entitled under their employment
agreements with Rio Tinto to a range of pre-existing redundancy entitlements, depending on the business and region
from where they were originally employed within the Rio Tinto Group. These include:
•
•
•
•
Notice may be worked or fully or partly paid in lieu, at ERA’s discretion
Additional capped service related payments may apply
Pro rata short term incentive plan payments may be paid based on the proportion of the performance
period worked
Conditional share awards granted and held for less than three years at the date of termination are reduced
pro-rata.
There is no contractual entitlement to payments in the event of a change of control.
F Share based compensation
Rio Tinto Performance Share Awards
Rio Tinto Performance Share Awards (PSA) are granted at the discretion of the Rio Tinto Remuneration
Committee in line with Rio Tinto guidelines. 100% potentially vest after five years. PSAs have been granted under
the EIP. The terms and conditions of each right to Rio Tinto Limited or Rio Tinto plc shares affecting remuneration
in this or future reporting periods are as follows:
AWARD DATE
Rio Tinto Limited
16 March 2020
18 March 2021
MARKET PRICE
AT AWARD
PERFORMANCE
PERIOD ENDS1
MARKET PRICE AT
31 DECEMBER 2023
$77.65
$110.80
31 December 2024
31 December 2025
$135.66
$135.66
Note 1 Vesting dependent upon continued employment with a Rio Tinto Group company and achievement of relevant performance conditions as detailed in the
Remuneration Report on page 50.
During the reporting period these incentive plans were not part of ERA’s executive pay and reward framework. No
PSA was awarded during 2023.
58 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
Rio Tinto Management Share Awards
Rio Tinto Management Share Awards (MSA) are granted at the discretion of the Rio Tinto Remuneration Committee
in line with Rio Tinto guidelines. MSAs have been granted under the EIP. The terms and conditions of each right to
Rio Tinto Limited or Rio Tinto plc shares affecting remuneration in this or future reporting periods are as follows:
AWARD DATE
Rio Tinto Limited
18 March 2021
23 March 2022
22 March 2023
MARKET PRICE
AT AWARD
VESTING DATE1
PRICE AT
31 DECEMBER 2023
$110.80
$113.68
$115.45
22 February 2024
17 February 2025
16 February 2026
$135.66
$135.66
$135.66
Note 1
Vesting dependent upon continued employment with a Rio Tinto Group company.
Rio Tinto employee myShare
Under Rio Tinto myShare, employees may acquire shares up to the value of US$5,250 (or local currency equivalent)
per year, capped at 15% of their base salary. Each share purchased will be matched by Rio Tinto and paid by ERA
(currently at a ratio of one for one) providing the participant holds the shares and remains employed at the end of the
three year vesting period.
The key management personnel and Directors of the Company who elected to participate in the Rio Tinto myShare
share purchase plan as at 31 December 2023 are set out below:
B Welsh
J Carey
R Fagen
R Prest
Rio Tinto myShare
Rio Tinto myShare
Rio Tinto myShare
Rio Tinto myShare
Energy Resources of Australia Ltd Annual Report 2023 59
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
DIRECTORS’ REPORT
Conditional awards provided as remuneration
Rio Tinto Equity Incentive Plan
No conditional awards of ordinary shares of either ERA or of Rio Tinto Limited or Rio Tinto plc were provided
during the year as remuneration for services provided to ERA to any of the non-executive Directors. Details of
conditional awards of ordinary shares in Rio Tinto Limited and Rio Tinto plc held during the year and provided as
remuneration to the Chief Executive and senior executives of ERA in respect of their duties as officers of ERA are
set out below. On vesting, each award converts into one ordinary share of Rio Tinto Limited or Rio Tinto plc.
BALANCE
AT START OF THE
YEAR OR ON JOINING1
GRANTED AS
REMUNERATION
VESTED
LAPSED
AWARDS
CANCELLED
OTHER
CHANGES2
BALANCE
AT END
OF YEAR3
Rio Tinto Limited
Executive Director
B Welsh
Senior executives
R Prest
F Egerton
A Tietzel
2023
2022
2,473
2,414
1,233
(418)
1,236
(1,177)
2023
2022
2022
2022
3,169
3,528
1,691
3,805
1,321
(1,339)
1,196
(1,555)
809
(1,489)
1,336
(3,603)
Non-executive Directors4
J Carey
R Fagen
J van Tonder
2023
2022
3,040
3,352
2023
24,064
2022
28,194
2023
2022
6,620
3,638
-
-
-
-
-
-
(1,074)
(1,230)
(7,059)
(7,405)
(4,333)
(1,211)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(798)
(1,538)
-
-
-
(2,070)
-
-
-
-
-
-
-
-
1,049
918
5,067
5,345
4,275
4,193
3,288
2,473
3,151
3,169
213
-
3,015
3,040
22,072
24,064
6,562
6,620
Note 1 Where key management personnel joined during the year, balance at start of the year reflects holdings at time of commencement with ERA.
Note 2 Other changes and end of year balance include changes made in relation to awards for service within the wider Rio Tinto group, including before joining
or after ceasing with ERA.
Note 3 When key management personnel left prior to the end of the year, the balance reflects holdings at the date of resignation.
Note 4 Changes to balances for non-executive Directors do not relate to remuneration for services provided to ERA.
60 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
Shareholdings
No Directors hold shares in ERA. Mr R Dennis and Mr K Wyatt do not hold shares in Rio Tinto Limited. The number
of shares held in Rio Tinto Limited during the financial year by each Director of ERA are set out below.
BALANCE
AT START OF
THE YEAR1
INCREASED
DURING
THE YEAR
OTHER CHANGES
DURING THE
YEAR
BALANCE
AT END OF
THE YEAR2
Rio Tinto Limited
B Welsh
J Carey
R Fagen
J van Tonder
S Glenn
P Mansell
P Dowd
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2022
4,791
3,151
5,984
4,151
24,564
19,340
-
-
149
-
750
828
1,640
1,342
4,759
9,157
9,413
3,067
1,428
-
-
-
-
-
(494)
(2,926)
(2,992)
(4,189)
(3,067)
(1,428)
-
-
(375)
5,619
4,791
6,832
5,984
30,729
24,564
-
-
149
-
375
Note 1 Where a Director was appointed during the year, balance reflects holdings at the time of commencement with the Company.
Note 2 Where a Director resigned during the year, balance reflects holdings at time of resignation as a Director of the Company.
Note 3 Mr R Dennis and Mr K Wyatt do not hold shares in Rio Tinto Limited.
G Additional information
Loans and other transactions with Directors and other key management personnel
There are no loans with Directors and other key management personnel. Other transactions with Director related
entities are disclosed in Note 24 – Related parties.
Energy Resources of Australia Ltd Annual Report 2023 61
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
DIRECTORS’ REPORT
Principal activities
Indemnification
The principal activities of the Company during the
course of the year consisted of site rehabilitation.
Dividends
No dividends have been paid by ERA to members in
respect of the 2023 financial year (2022: nil).
Operating and financial review
Details of ERA’s review and results of operations are
included in the Chair’s Report on page 6, the Chief
Executive’s Report on page 8 and the Financial
Performance section on page 26.
Significant changes to the state of
affairs
In the opinion of the Directors, other than matters
reported in the Directors’ Report, the Chair’s Report
and the Chief Executive’s Report, there were no
significant changes in the state of affairs of the
Company during the year ended 31 December 2023.
Matters subsequent to the end of
the financial year
In the interval between the end of the year and the
date of this report there has not arisen any item,
transaction or event of a material nature, other than
matters reported in the Chair’s Report and the Chief
Executive’s Report on pages 6 and 8 respectively,
that has significantly affected or may significantly
affect:
•
•
•
The operations of the Company
The results of those operations
The state of affairs of the Company
subsequent to the Financial year ended 31
December 2023.
Likely developments
In the opinion of the Directors, any likely
developments in the operations of the Company
known at the date of this report have been covered
within the Annual Report and Notes to the financial
statements.
A general review of developments for ERA is
presented in the Financial Performance section on
page 26.
Annual General Meeting
The 2024 Annual General Meeting will be held in
Darwin, in the Northern Territory of Australia. Notice
of the 2024 Annual General Meeting will be given to
the shareholders of the Company in accordance with
the Corporations Act. It is anticipated the meeting will
be an in person meeting, noting that the Company will
have the required facilities on standby should a virtual
or hybrid option become required.
Clause 11 of the Company’s Constitution provides
that every Director, manager, officer or employee of
the Company shall be indemnified out of the funds of
the Company against all liability incurred by them in
defending any proceedings in which they are
successful.
The Corporations Act 2001 prohibits a company from
indemnifying Directors, secretaries, executive officers
and auditors from liability except for liability to a party,
other than the Company or a related body corporate,
where the liability does not arise out of conduct
involving a lack of good faith and except for liability for
costs and expenses incurred in defending
proceedings in which the officer or auditor is
successful. An indemnity for officers or employees
who are not Directors, secretaries or executive
officers, is not expressly prohibited by the
Corporations Act 2001.
The Directors and Company Secretaries of the
Company, and all former Directors and Company
Secretaries, have the benefit of the indemnity in
Clause 11 of the Company’s Constitution.
The indemnity also applies to executive officers of the
Company (being the senior executives and managers
who are concerned with or take part in the
management of the Company) as well as other
employees.
Insurance
Since the end of the previous financial year, the
Company has paid insurance premiums in respect of
a Directors’ and officers’ liability policy of insurance.
The policy indemnifies all Directors and officers of
ERA (including the Directors, Company Secretaries,
and executive officers referred to above) against
certain liabilities.
In accordance with common commercial practice, the
insurance policy prohibits disclosure of the nature of
the liability insured against and the amount of the
premium.
Environmental regulation and
policy
ERA strives to be at the forefront of environmental
management in the uranium industry. It operates in
accordance with relevant Commonwealth and
Northern Territory environmental legislation as well as
site specific environmental licences, permits and
statutory authorisations. ERA’s environmental
management system is ISO14001 compliant.
ERA is required to report any incident that is a
divergence from strict compliance with statutory
requirements, even if the incident has no detrimental
environmental impact, and reports are made to the
Department of Industry, Tourism and Trade (Northern
Territory); the Supervising Scientist Branch of the
Commonwealth Department of Climate Change,
Energy, Environment and Water; the Northern Land
Council; the Commonwealth Department of Industry,
62 Energy Resources of Australia Ltd Annual Report 2023
DIRECTORS’ REPORT
Science and Resources and the Gundjeihmi
Aboriginal Corporation (representatives of the Mirarr
Traditional Owners).
ERA’s commitment to protect the environment in 2023
was overseen by the Supervising Scientist Branch,
which conducts extensive monitoring and research
programs on the Ranger Project Area and Jabiluka
Mineral Lease.
There were no prosecutions commenced or fines
incurred in respect of ERA’s environmental
performance during 2023. The environment remained
protected throughout the period.
Corporate governance
The Board of ERA considers high standards of
corporate governance to be critical to business
integrity and performance. The corporate governance
structures and practices in place at ERA are
substantially in compliance with the 4th Edition of the
Corporate Governance Principles and
Recommendations developed by the ASX Corporate
Governance Council (Council).
Areas where the corporate governance practices of
ERA do not follow the Council’s recommendations
arise due to Rio Tinto’s 86.3% ownership of the
Company and the management, direction, services
and support this provides. The extent to which the
Company does not comply is detailed in the
Corporate Governance Statement on pages 65 to 71.
Company secretaries
Richard Prest and Stephanie So are company
secretaries of ERA. Richard was appointed to the role
on 10 December 2021, and Stephanie’s appointment
commenced on 27 April 2023. Their qualifications and
experience are set out on page 44.
Rounding of amounts
The Company is of a kind referred to in ASIC Class
Order 2016/191 and in accordance with that Class
Order amounts in the financial statements and
Directors’ Report have been rounded to the nearest
thousand dollars, unless otherwise indicated.
Auditor
KPMG is the auditor of the Company. No person who
was an officer of the Company during the year was a
former partner or director of the auditor. Each of the
Directors at the time this report was approved has
confirmed that so far as he or she is aware,
There is no relevant audit information (i.e.
information needed by the auditor in connection
with preparing its report) of which the auditor is
unaware and;
He or she has taken all steps that they ought to
have taken as a Director in order to make himself
or herself aware of any relevant audit information
and to establish that the auditor is aware of that
information.
Non audit services
The Company may decide to employ the auditor on
assignments additional to its statutory audit duties
where the auditor’s expertise and experience with the
Company are important.
Details of the amounts paid or payable to the auditor
for audit services are set out below.
No non audit services were performed by KPMG
during the year.
When performed all non-audit services are reviewed
by the Audit and Risk Committee to ensure they do
not impact on the impartiality and objectivity of the
auditor and do not undermine the general principles
relating to auditor’s independence as set out in
Professional Statement F1, including reviewing or
auditing the auditor’s own work, acting in a
management or decision making capacity for the
Company, acting as advocate for the Company or
jointly sharing economic risks and rewards.
During the year, the following fees were paid or
payable for services provided by the auditor of the
Company, its related practices and non-audit related
firms.
KPMG Australia
Audit and review of financial
reports
Audit and review of financial
reports (additional prior year fees)
Total remuneration for audit
services
Other non-audit related services
Total remuneration
2023
$000
2022
$000
374
295
-
24
374
-
374
319
-
319
Information on Auditor
KPMG continues in office in accordance with Section
327 of the Corporations Act 2001.
A copy of the auditor’s independence declaration as
required under section 307C of the Corporations Act
2001 is set out on page 64.
Signed at Brisbane this 12 March 2024 in accordance
with a resolution of the Directors.
R Dennis
Director
Brisbane
12 March 2024
Energy Resources of Australia Ltd Annual Report 2023 63
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report AUDITOR’S INDEPENDENCE DECLARATION
64 Energy Resources of Australia Ltd Annual Report 2023
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Energy Resources of Australia Ltd I declare that, to the best of my knowledge and belief, in relation to the audit of Energy Resources of Australia Ltd for the financial year ended 31 December 2023 there have been: i. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. No contraventions of any applicable code of professional conduct in relation to the audit. KPMG Derek Meates Partner Perth 12 March 2024 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Energy Resources of Australia Ltd I declare that, to the best of my knowledge and belief, in relation to the audit of Energy Resources of Australia Ltd for the financial year ended 31 December 2023 there have been: i. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. No contraventions of any applicable code of professional conduct in relation to the audit. KPMG Derek Meates Partner Perth 12 March 2024
CORPORATE GOVERNANCE STATEMENT
The Board of ERA considers the highest standards of
corporate governance to be critical to business
integrity and performance and the ability to maximise
the overall long term return to shareholders. The
Board seeks to ensure that ERA meets the objectives
of its shareholders, whilst paying proper regard to the
interests of employees and external stakeholders.
The corporate governance structures and practices in
place at ERA are substantially in compliance with the
4th Edition of the Corporate Governance Principles
and Recommendations (Principles) developed by the
ASX Corporate Governance Council (Council), with
the exception of any departures articulated in this
Corporate Governance Statement.
This Corporate Governance Statement is current as at
12 March 2024 and has been approved by the Board
of ERA.
Board responsibilities and charter
In carrying out its responsibilities and powers, the
Board at all times recognises its overriding
responsibility to act honestly, fairly, diligently and in
accordance with the law in serving the interests of
ERA’s shareholders, employees and the community.
The Board Charter underpins the strategic guidance
and effective management oversight provided by the
Board and defines the division of responsibility
between Board and management by formal
delegation and a system of Board reserved powers.
Other than as specifically reserved to the Board in the
Board Charter, responsibility for the management of
ERA’s business is delegated to the Chief Executive
who is accountable to the Board.
The Board approves strategy and business plans and
monitors the performance of ERA against these plans.
The Board also monitors compliance with policies
prescribed by the Board in areas such as health and
safety, environment, business ethics, internal controls
and risk management. These policies are designed to
ensure that ERA meets or exceeds the regulatory
requirements governing its operations.
In addition to the matters expressly required by
law to be approved by the Board, the powers
specifically reserved for the Board are as follows:
• Confirming the appointment and removal of
•
•
•
•
a Chief Executive and the terms and
conditions of the Chief Executive’s
employment
Appointment and removal of a Company
Secretary
Appointment of the Chair of the Board and
members of Board Committees
Any matters set out in the Schedule of
Matters Reserved for Decision or
Consideration by the Board
Approval, subject to the Constitution, the
Corporations Act 2001 and the ASX Listing
Rules, of each of the following:
(i)
The issue of new shares or other
securities in the Company
(ii)
(iii)
(iv)
(v)
Incurring of debt (other than trade
creditors incurred in the normal
course of business)
Capital expenditure in excess of
$5,000,000
The acquisition, divestment or
establishment of any significant
business assets
Changes to the discretions
delegated from the Board
The annual operating budget
(vi)
(vii) Changes to the capital and
operating approval limits of senior
management
(viii) The annual report and interim and
preliminary final reports.
The Board receives copies of all material market
announcements promptly after they have been made.
The Board Charter is available at the Corporate
Governance section of ERA’s website.
Composition
The Board of ERA currently consists of seven
Directors, six of whom are non-executive and three of
whom are independent:
• Richard (Rick) Dennis, Independent Non-
•
Executive Chair
Brad Welsh, Chief Executive and Managing
Director
• Hon. Kenneth (Ken) Wyatt, Independent
•
Non-Executive Director
Stuart Glenn, Independent Non-Executive
Director
•
Justin Carey, Non-Executive Director
• Rosemary Fagen, Non-Executive Director
•
Alfred (Alfie) Grigg, Non-Executive Director
(appointed on 1 January 2024).
Skills, experience and diversity
The Board strives to achieve a diversity of skills,
experience and perspective among its Directors.
Details of the Directors, their experience,
qualifications and other appointments are set out on
pages 40 to 43. Details of the independent status of
each Director are outlined in the Independence
section below.
Qualification for Board membership is driven by the
principle that the Board’s composition should reflect
the right balance of skills, knowledge and diversity
that the Board considers will best serve the interests
of ERA and all of its shareholders.
The Board reviews its structure, size and composition
regularly. While the Board has not established a
Nominations Committee, the Board considers that its
existing practices in reviewing Director competencies,
Board succession planning, Board performance
evaluation and Director selection and nomination
carried out in accordance with the Board Charter, are
Energy Resources of Australia Ltd Annual Report 2023 65
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Energy Resources of Australia Ltd I declare that, to the best of my knowledge and belief, in relation to the audit of Energy Resources of Australia Ltd for the financial year ended 31 December 2023 there have been: i. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. No contraventions of any applicable code of professional conduct in relation to the audit. KPMG Derek Meates Partner Perth 12 March 2024 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Energy Resources of Australia Ltd I declare that, to the best of my knowledge and belief, in relation to the audit of Energy Resources of Australia Ltd for the financial year ended 31 December 2023 there have been: i. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. No contraventions of any applicable code of professional conduct in relation to the audit. KPMG Derek Meates Partner Perth 12 March 2024 About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
CORPORATE GOVERNANCE STATEMENT
satisfactory and appropriate given the size of the
Board and ERA’s current ownership structure. The
process to identify and nominate new independent
Directors from time to time is led by the incumbent
independent Directors. Decisions relating to the
appointment of Directors are made by the full Board.
Directors appointed by the Board (with the exception
of the Managing Director) are required by ERA’s
Constitution to submit themselves for re-election by
shareholders at the Annual General Meeting following
their appointment. There is no share ownership
qualification for appointment as a Director.
The ERA Board undertakes appropriate background
checks and screening prior to appointing a Director or
putting a candidate to security holders for election as
a Director. ERA provides security holders with all
material information in its possession concerning each
Director standing for election or re-election in the
explanatory notes accompanying the applicable notice
of meeting.
Non-executive Directors are required to retire at least
every three years in accordance with ERA’s
Constitution but may offer themselves for re-election.
The key attributes that the Board currently seeks to
achieve in its membership are set out below.
Mining
Senior executive experience in the
resources industry, including mining,
development, marketing and exploration
Health, safety and
environment
Familiarity with issues associated with
workplace health and safety, environment
and social responsibility
Financial
Technical
Strategy
Environment/
social and
governance
(ESG)
Executive
leadership
Government
relations
Proficiency in financial accounting and
reporting, corporate finance, internal
financial controls, corporate funding and
associated risks
A strong understanding in technical areas
of the resource industry, including
engineering, mining and processing
Proven ability in developing and
implementing successful business
strategies, including the capacity to probe
and challenge management on the delivery
of strategic objectives
Commitment to the highest standards of
governance, including Board experience
with other ASX listed companies that
demonstrate rigorous governance
standards
Sustainable success in business at a very
senior executive level
Interaction with government and regulators
and involvement in public policy initiatives
and decisions
Community and
Indigenous
engagement
Experience in engaging with a cross-
section of community and Indigenous
stakeholders
Risk management Experience in developing and establishing
risk management frameworks, setting risk
appetite and overseeing organisational risk
culture
Capital markets
Project
management
Rehabilitation
Sustainability
reporting
Stakeholder
engagement
People and
culture
Practical knowledge and hands-on
involvement in investing and trading in the
financial sector.
Familiarity and skill in planning, executing,
and supervising projects, typically gained
through prior involvement in managing a
variety of projects.
Knowledge and practical expertise in
restoring and revitalising a mined area,
often acquired through hands-on work in
mine reclamation and environmental
restoration projects.
Proficiency in assessing, documenting, and
communicating the environmental and
social impacts of rehabilitation operations,
within the mining industry.
Effectively involve and communicate with
various parties, such as local communities,
traditional owners, regulators, and
environmental organisations, to facilitate
collaborative efforts and address concerns
during the mine rehabilitation process.
Knowledge and skills in managing the
human aspects, including workforce
engagement, community relations, and
fostering a positive organisational culture
throughout the rehabilitation process.
Appointment, induction training
and professional development
All new non-executive Directors sign a letter of
appointment which sets out the key terms and
conditions of their appointment including duties, rights
and responsibilities, the time commitment envisaged
and the Board’s expectations regarding their
involvement with committee work. There is also a
separate written agreement between ERA and each
of its Chief Executive and senior executives relating to
their respective responsibilities and duties as an
officer of the Company (see pages 57 to 58).
Induction training is provided to all new Directors. It
includes comprehensive induction materials,
discussions with the Chief Executive and senior
executives and the option to visit the Company’s
operations at the Ranger Project Area, either by
appointment or with the Board during its next site tour.
The induction materials and discussions include
information on the Company’s strategy, culture and
values, key corporate and Board policies, the
Company’s financial, operational and risk
management position, the rights and responsibilities
of Directors, the role of the Board and its committees
and meeting arrangements.
All Directors are expected to maintain the skills
required to discharge their obligations to the
Company. ERA provides the opportunity for Directors
to participate in professional development activities to
develop and maintain the skills and knowledge
needed to perform their role as Directors effectively.
Independence
For the purposes of determining Director
independence, the Board considers any material
66 Energy Resources of Australia Ltd Annual Report 2023
CORPORATE GOVERNANCE STATEMENT
business relationship which could interfere, or be
perceived to interfere, with the Director’s
independence of judgement, ability to provide a
strong, valuable contribution to the Board’s
deliberations and the Director’s ability to act in the
best interests of ERA and shareholders as a whole.
Where contracts in the ordinary course of business
exist between ERA and a company in which a
Director has declared an interest, these are reviewed
for materiality to both ERA and the other party to the
contract.
In addition to the examples set out in the Principles,
the following may be taken into account in considering
such material business relationships:
• Whether, within the last three years, the
Director or a close family member has been
a member of executive management of
ERA, employed in a senior position with a
member of the Rio Tinto Group or has
received additional remuneration from the
Company or a member of the Rio Tinto
Group
•
• Whether the Director or a close family
member is, or is associated with, a
substantial shareholder (more than five% of
the voting shares) in the Company or in a
member of the Rio Tinto Group
The Director’s cross directorships of, or
significant links with, or involvement in,
other companies
The Director’s length of service on the
Board and whether this may have
compromised independence
•
• Whether, within the last three years, the
Director or a close family member has had,
either directly or indirectly and whether as
principal, employee or consultant, a material
business relationship with ERA or with a
member of the Rio Tinto Group, whether as
an auditor, professional adviser, supplier, or
customer (“material” being more than five
per cent of ERA’s or the counterparty’s
consolidated gross revenue per annum).
Mr Dennis, the Hon. Mr Wyatt and Mr Glenn are each
considered by the Board to be independent Directors.
For the whole reporting period, the Board of Directors
did not consist of a majority of independent Directors,
with four of the seven Directors nominees of the
Company’s largest shareholder, Rio Tinto. This does
not follow Recommendation 2.4 of the Council’s
Principles. However, the Board considered this was
appropriate given the ownership structure of the
Company, notably Rio Tinto’s 86.3% shareholding.
The Board has policies and protocols in place to
safeguard the integrity of the Board’s decision making
process and all Directors are required to, and do,
bring an independent judgement to bear on Board
decisions and act in accordance with their statutory
duties of good faith and for a proper purpose, and in
the interests of shareholders as a whole.
All related party transactions, including those with Rio
Tinto, have been determined by the independent
Directors to be on arm’s length terms and in the
interests of ERA.
Chair and Chief Executive
On 31 January 2023, Mr Carey stepped down as
Interim Chair and Mr Dennis was appointed as
Independent Non-Executive Chair.
Mr Brad Welsh was appointed as Acting Chief
Executive on 4 October 2021 and Managing Director
and Chief Executive on 18 February 2022.
Company Secretary
The Company Secretary is responsible for
ensuring that Board procedures are complied with
and that governance matters are addressed. All
Directors have direct access to the Company
Secretary who is accountable directly to the
Board, through the Chair, on all matters to do with
the proper functioning of the Board. Details of the
Company Secretary’s experience and
qualifications are set out on page 44.
Board meetings
The number of Directors and Committee meetings
held and the number of meetings attended by
each of the Directors of the Company or members
of the Committees respectively during the
financial year are set out on page 45.
Board performance
The Board has a process for periodically evaluating its
performance, as well as the performance of its
committees and individual Directors. The evaluation
generally takes the form of an internal self-
assessment process facilitated by the Chair. After
consulting each Director and the Company Secretary,
the Chair reports a summary of the findings to all
Directors for discussion at the next Board meeting
where relevant actions are agreed. Periodically the
Board may utilise the services of an external
consultant to facilitate the process.
The external process takes the form of a
questionnaire completed by each of the Directors and
the Company Secretary. Following collation by the
consultant, the results, adequacy and appropriateness
of the self-assessment process are compiled. A report
outlining the results is circulated to all Directors and
discussed at the following Board meeting where
actions arising are agreed.
In 2023 an internally managed performance
evaluation of the Board was conducted with the
findings distributed to all Directors and formally
presented during the subsequent Board meeting.
Energy Resources of Australia Ltd Annual Report 2023 67
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report CORPORATE GOVERNANCE STATEMENT
and internal auditors. The Committee also reviews the
adequacy of internal and external audit arrangements.
The Audit and Risk Committee advises the Board of
any matters that might have a significant impact on
the financial condition of ERA and has the authority to
investigate any matters within its terms of reference,
having full access to the information and resources of
ERA to fulfil its function.
The Audit and Risk Committee held four meetings
during 2023. Attendance details of the 2023 meetings
of the Audit and Risk Committee, and the
qualifications and experience of the members, are set
out in the Directors’ Report on pages 45 and 40 to 42
respectively.
Each year the external auditor submits a schedule of
audit services and fee estimate to the Audit and Risk
Committee for consideration and approval. KPMG is
appointed as ERA’s external auditor for 2023. Each
year, the Audit and Risk Committee reviews the
effectiveness of the external audit process and the
independence of the auditor. Based on its 2023
review, the Audit and Risk Committee was satisfied
with the external audit process and that the external
auditor remained independent. Any work to be
conducted by the external auditor other than the audit
is approved by the Audit and Risk Committee.
Details of the fees paid to KPMG during 2023 are
outlined on page 63.
Sustainability Committee
The Sustainability Committee was re-established on
16 February 2023 with membership comprising Ms
Fagen (Committee Chair), the Hon. Mr Wyatt and Mr
Welsh.
The Sustainability Committee Charter sets out the role
and objectives of the Sustainability Committee and is
reviewed regularly. It is available at the Corporate
Governance section of ERA’s website.
The Committee provides a formal structure to further
support governance and initiatives for improvement in
the sustainability of ERA operations, including health,
safety and environmental management.
The Sustainability Committee held two scheduled
meetings during 2023. Attendance details of the 2023
meetings of the Sustainability Committee, and the
qualifications and experience of the members, are set
out in the Directors’ Report on pages 45 and 40 to 42
respectively.
Independent professional advice
The Board has adopted a procedure for Directors
wishing to seek independent professional advice, at
the Company’s expense, in the furtherance of their
duties. The Board recognises that there may be
circumstances in which individual Directors are
entitled to independent professional advice at the
Company’s expense in the furtherance of their duties,
and any Director may do so by arrangement with the
Company Secretary.
Remuneration Committee
On 16 February 2023, following the appointment of
Independent Non-Executive Directors Mr Dennis
(Chair), the Hon. Mr Wyatt and Mr Glenn, the Board
resolved to re-establish the Remuneration Committee,
with membership comprising the Hon. Mr Wyatt
(Committee Chair), Ms Fagen and Mr Dennis.
The Chief Executive may be invited to attend
Remuneration Committee meetings. Other executives
may also be invited to discuss or report on particular
agenda items. The Remuneration Committee held two
meetings during 2023. Attendance details of the 2023
meetings of the Remuneration Committee are set out
in the Directors’ Report on page 45.
The Remuneration Committee Charter sets out the
role and objectives of the Remuneration Committee. A
summary of the objectives of the Remuneration
Committee and the policies and practices of the
Company regarding the remuneration of non-
executive Directors, the Chief Executive and senior
executives is set out on pages 47 to 50 of the
Remuneration Report. The complete Remuneration
Committee Charter is available at the Corporate
Governance section of ERA’s website at
www.energyres.com.au.
An annual performance evaluation of the Chief
Executive and senior executives was undertaken in
2023. Details of how the performance evaluation
process is undertaken by the Board in respect of the
Chief Executive and senior executives are set out on
pages 51 to 55 of the Remuneration Report.
Audit and Risk Committee
The Audit and Risk Committee was re-established on
16 February 2023, with membership comprising Mr
Dennis (Committee Chair), Mr Carey and Mr Glenn.
The Company’s Chief Financial Officer, Chief
Executive, General Counsel and Company Secretary,
the external auditor and the internal auditor are invited
to attend all meetings.
The Audit and Risk Committee Charter sets out the
role and terms of reference of the Audit and Risk
Committee and is reviewed regularly. The Audit and
Risk Committee Charter is available at the Corporate
Governance section of ERA’s website.
The Committee provides a formal structure for
reviewing ERA’s financial statements, accounting
policies, control systems, risk management practices
and taxation issues and for liaison with the external
68 Energy Resources of Australia Ltd Annual Report 2023
CORPORATE GOVERNANCE STATEMENT
Rehabilitation Committee
Diversity
Due to the significant focus on rehabilitation of the
Ranger Project Area, on 16 December 2022, the
Board resolved to re-establish the Rehabilitation
Committee, with membership comprising Mr van
Tonder (Committee Chair) and Mr Welsh. Following
the appointment of Independent Non-Executive
Directors Mr Dennis (Chair), the Hon. Mr Wyatt and
Mr Glenn, on 16 February 2023, the Board resolved to
vary the membership of the Rehabilitation Committee
to comprise Mr Glenn (Committee Chair) and Mr van
Tonder. The Board resolved to appointment Mr Carey
as an additional Rehabilitation Committee Member in
May 2023 due to an unexpected leave of absence by
Mr van Tonder.
The Committee is mandated to receive and share
information on, and review and evaluate, key aspects
of risk, performance and activities of the Ranger
Rehabilitation Project and to provide feedback and
recommendations to the Board.
The Rehabilitation Committee held eight scheduled
meetings during 2023. Attendance details of the 2023
meetings of the Rehabilitation Committee, and the
qualifications and experience of the members, are set
out in the Directors’ Report on pages 45 and 40 to 42
respectively.
Independent Board Committee
In May 2020, the Board adopted a Conflicts of Interests
and Related Party Transactions Policy. The purpose of
the Policy is to outline a process for identification,
review, approval and disclosure of Related Party
Proposals, with a view to ensuring that all decisions of
the Board are made in the best interests of the
Company as well as ensuring compliance with the law.
The Board re-established the Independent Board
(IBC) on 31 January 2023, with
Committee
membership comprising
the Directors who were
considered to be independent of Rio Tinto, being Mr
Dennis (Chair), the Hon. Mr Wyatt and Mr Glenn.
The IBC has been delegated all powers, authorities
and discretions of the Board with respect to any
transaction or proposal:
•
In which, in the opinion of the Chair of the
IBC, a Related Party has or may have
interests other than its interest as
shareholder in common with other
shareholders; or
• Where, in the opinion of the Chair of the
IBC, the interests of ERA and a Related
Party conflict or may appear to conflict,
excluding any transaction or proposal in
which a member of the IBC is a conflicted
Director.
For so long as Rio Tinto has a controlling interest in
the Company, Rio Tinto will be taken to be a Related
Party for this purpose. A copy of the Policy (including
IBC’s Charter) are available on the Company’s
website at
https://www.energyres.com.au/uploads/Policies/INF15
7_Conflicts_of_Interest_and_Related_party_Transacti
ons_Policy.pdf.
ERA acknowledges the benefits that flow from
advancing Board and employee diversity, in particular
gender and Indigenous diversity. These benefits
include identification and rectification of gaps in the
skills and experience of Directors and employees,
enhanced employee retention, greater innovation and
maximisation of available talent to achieve corporate
goals and increased financial performance.
Diversity, in the context of the Company, primarily
refers to groups which are underrepresented in its
workforce. ERA has a particular focus on the
representation of women and Indigenous people in its
workforce. ERA’s policy on diversity can be found on
the Company’s website at www.energyres.com.au. In
accordance with the Company’s diversity policy, ERA
has set measurable objectives to achieve diversity.
The objectives and the Company’s progress in
achieving each objective are set out below:
OBJECTIVE
OUTCOME
Women to represent 20%
of the senior executives
(being manager level and
above) and the Board by
end of 2023
Target Indigenous
employment of 15% by the
end of 2023.
As at 31 December 2023
female participation at
manager, Executive
Committee and Board level
is 33%. Women comprise
14% of Directors. Total
female participation is 23%.
ERA ended 2023 with an
Indigenous employment rate
of 13%. 32% of Indigenous
employees were female and
10 employees held
leadership roles. Indigenous
employment at Executive
Committee and manager
level is 25%.
As at 31 December 2023, the proportion of women
employed by ERA was as follows:
Board of Directors
Executive Committee and
managers
Company
14%
42%
23%
Code of business conduct
ERA has clear standards around bribery and
corruption, conflicts of interest, antitrust, benefits,
sponsorships and donations, data privacy, fraud and
third party due diligence. ERA has a Code of
Business Conduct to be met by all employees and
Directors. All employees are required to maintain high
standards of ethical behaviour in the execution of their
duties and comply with all applicable laws and
regulations in Australia and in every other country in
which the Company engages in business.
The Code of Business Conduct is reviewed regularly
to ensure it adequately addresses the issues facing
the Company and is available for inspection on the
Corporate Governance section of the Company’s
website at www.energyres.com.au.
Energy Resources of Australia Ltd Annual Report 2023 69
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report CORPORATE GOVERNANCE STATEMENT
In addition to the Company’s Code of Business
Conduct, the Company’s employees are required to
comply with Rio Tinto’s statement of business practice
The Way We Work, available at Rio Tinto’s website at
www.riotinto.com. This includes ERA’s values and
provides a clear framework for how we should
conduct our business.
The Company uses Rio Tinto’s confidential
whistleblower program known as ‘myVoice’. It offers
an avenue through which our employees, contractors,
suppliers and customers can report concerns
anonymously, subject to local law. Employees are
encouraged to report any suspicion of unethical or
illegal practices. Further details regarding the program
are available in the Corporate Governance section of
the Company’s website at www.energyres.com.au.
The Board is informed of any material breaches and
incidents reported under its Code of Business
Conduct, whistleblower policy or anti bribery and
corruption policy.
Purchase and sale of Company
securities
ERA has in place a formal policy that reinforces to all
Directors, officers and employees the prohibitions
against insider trading. The Share Trading Policy is
available for inspection at the Corporate Governance
section of the Company’s website at
www.energyres.com.au.
In addition, the “Rules for dealing in securities of Rio
Tinto” (Dealing Rules) apply to the participation of
ERA executives in the Rio Tinto long term incentive
plans involving the awarding of Rio Tinto securities at
a future date. Any such grants of shares and options
under the Rio Tinto plans are subject to, and
conditional upon, compliance with the terms of the
Dealing Rules, including an express prohibition on
hedging or limiting of exposure to economic risk in
relation to such securities.
Under the ERA Share Trading Policy:
•
•
•
Directors, senior executives and senior
managers must advise the Chair in writing
and receive approval in writing from the
Chair, if they intend to purchase or sell ERA
securities
In regard to his own dealings, the Chair is
required to notify the Chair of the Audit and
Risk Committee
No dealings in ERA securities may take
place for the period from the end of any
relevant financial period to the trading day
following announcement of ERA’s annual
results or half year results.
Particulars of the interests held by Directors are
outlined on page 46 of the Director’s Report.
Risk identification and
management
ERA has in place a range of policies and procedures
to manage the risks associated with its operating
activities. These policies and procedures have been
adopted by the Board, with primary oversight by the
Audit and Risk Committee, to ensure that potential
business risks are identified, and appropriate action
taken.
The Company has an annual internal audit program
that is determined by the Audit and Risk Committee.
The annual internal audit program is executed by an
outsourced provider which reports back to the Audit
and Risk Committee on its assessment of the
Company’s control environment. In addition, the
Company Secretary provides support for internal audit
planning activities and the monitoring of actions
implemented by the Company in response to findings
raised by the internal auditor.
ERA benefits from the Rio Tinto Group’s knowledge,
policies and practices on risk management and
corporate assurance, developed to manage Rio
Tinto’s diverse business activities covering a variety of
commodities and operational locations. Together,
these make up a comprehensive framework and
approach to risk analysis and risk management.
The Board has in place a number of systems to
identify and manage business risks. These include:
•
•
•
•
•
•
The identification and review of all of the
business risks known to be facing the
Company
The provision of reports and information by
management to the Board, on a periodic
basis, confirming the status and
effectiveness of the plans, controls, policies
and procedures implemented to manage
business risks
Guidelines for ensuring that capital
expenditure and revenue commitments
exceeding certain approved limits are
placed before the Board for approval
Limits and controls for all financial
exposures, including the use of derivatives
A regulatory compliance program
Safety, health and environmental policies
which are supported by a set of standards
and management systems which recognise
the Company’s commitment to achieving
high standards of performance in all its
activities in these areas.
The Audit and Risk Committee reviews ERA’s risk
management framework at least annually, and did so
in 2023, to satisfy itself that it continues to be sound.
The Audit and Risk Committee and the Board has
assessed the strategic risks to the Company’s
business and the mitigation strategies to be
implemented by management. The strategic risks
70 Energy Resources of Australia Ltd Annual Report 2023
CORPORATE GOVERNANCE STATEMENT
identified through this assessment were future
operating cash flow and financial resources,
stakeholder support of the Company’s strategic
initiatives, rehabilitation of the Ranger Project Area,
internal constraints relating to the Company’s licence
to operate, external events relating to the Company’s
licence to operate and retention and recruitment of
key personnel.
These strategic risks are in addition to risks inherent
to the mining industry generally which include
economic conditions (fluctuations in commodity
pricing and exchange rates), international regulation
of greenhouse gas emissions and impact of climatic
conditions. More information on ERA’s business risks,
including any material exposure to economic,
environmental and social sustainability risks, is set out
on pages 28 to 31 of the Annual Report.
Each reporting period, the Chief Executive and the
Chief Financial Officer give statements to the Board
that, in their opinion, the financial records of the
Company have been properly maintained and that the
financial statements comply with the Australian
Accounting Standards and give a true and fair view of
the Company’s financial position and performance.
The statements also provide that the opinion has
been formed on the basis of a sound system of risk
management and internal control which is operating
effectively in all material respects.
Risk identification and
management – environmental and
social risk
Business risks which encapsulate material execution,
environmental and social risks are reported in the
Business Risks section of the Annual Report. In
addition, ERA has developed a sustainability reporting
framework that reports against key areas of interest in
environmental, social and governance domains. This
report will be released by Q2 2024.
Public statements and disclosure
matters
ERA makes full and immediate disclosures to its
shareholders and the market as required by, and in
accordance with, its legal and regulatory obligations.
Established systems are in place to ensure
compliance and matters that may have a material
impact on the price or value of ERA’s securities are
reported to the market in accordance with the ASX
Listing Rules and the Corporations Act 2001. ERA’s
Continuous Disclosure Policy is available at the
Corporation Governance section of ERA’s website at
www.energyres.com.au.
Management is responsible for establishing and
maintaining adequate internal controls over financial
reporting. These controls, supervised by the Chief
Executive and Chief Financial Officer, provide
reasonable assurance regarding the reliability of the
Group’s financial reporting and the preparation and
presentation of financial statements for external
reporting purposes, in accordance with International
Financial Reporting Standards (IFRS). The
Company’s internal controls over financial reporting
include policies and procedures designed to ensure
the maintenance of records that: (i) accurately and
fairly reflect transactions and dispositions of assets;
(ii) provide reasonable assurances that transactions
are recorded as necessary, enabling the preparation
of financial statements in accordance with IFRS, and
(iii) receipts and expenditures are made with the
authorisation of management and directors of each of
the companies.
Modern Slavery Statement
ERA is a reporting entity under the Australian Modern
Slavery Act 2018 (Cth) and will be included in Rio
Tinto’s joint 2023 Modern Slavery Statement which
will be published on behalf of the reporting entities in
the Rio Tinto Group.
Shareholder communication
ERA recognises the importance of effective
communication with shareholders and the general
investment community. Apart from ERA’s compliance
with its mandatory continuous disclosure obligations,
ERA takes steps to ensure that its shareholders and
other stakeholders are kept informed. Full advantage
is taken of the Annual General Meeting to inform
shareholders of current developments and to give
shareholders the opportunity to ask questions. KPMG,
ERA’s external auditor attends the Annual General
Meeting and is available to answer shareholder
questions about the conduct of the audit and the
preparation and content of the auditor’s report.
ERA shareholders are also able to submit written
questions regarding the conduct of the audit and the
statutory audit report to the auditor via the Company.
Any questions received and answers provided will be
made available to members at the Annual General
Meeting. Shareholders who are unable to attend
meetings are encouraged to appoint a proxy to vote
either as they direct or at their discretion.
ERA believes that investor seminars, presentations
and briefings on financial and operational issues,
including social and environmental performance, are
valuable ways of communicating with relevant
professionals, employees and other interested
persons when required. The Chief Executive and
Chief Financial Officer are available for regular
meetings with the Company’s major investors.
When conducted, ERA gives equal access to
information disclosed in investor seminars,
presentations and briefings. If any such event is used
to disclose new material, it will, in advance or
simultaneously, be disclosed to the ASX and available
on ERA’s website.
ERA provides shareholders with the option to receive
communications from, and send communications to,
the Company and the share registrar electronically.
The contact details are available on the Company’s
website.
Energy Resources of Australia Ltd Annual Report 2023 71
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Revenue from continuing operations
Cost of sales
Materials and consumables used
Employee benefits and contractor expenses
Government and other royalties
Commission and shipping expenses
Depreciation and amortisation expenses
Changes in estimate of rehabilitation provision
Financing costs
Statutory and corporate expenses
Other expenses
Loss before income tax
Income tax (expense)/benefit
Loss for the year
Other comprehensive loss
Total comprehensive loss for the year
Loss is attributable to:
Owners of Energy Resources of Australia Ltd
Total comprehensive loss for the year is attributable to:
NOTE
S
2023
$'000
2022
$'000
3
4
4
17
4
4
5
34,182
55,309
-
(22,524)
(1,100)
(235)
(11,974)
(15,918)
-
-
(292)
(1,936)
(56)
(312)
(1,349,272)
(62,157)
(57,273)
(106,467)
(2,270)
(95)
(6,009)
(248)
(1,388,094)
(160,553)
-
-
(1,388,094)
(160,553)
-
-
(1,388,094)
(160,553)
(1,388,094)
(160,553)
Owners of Energy Resources of Australia Ltd
(1,388,094)
(160,553)
Earnings per share for loss attributable to the ordinary equity holders of the
Company:
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
27
27
(8.6)
(8.6)
(4.3)
(4.3)
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
72 Energy Resources of Australia Ltd Annual Report 2023
Balance sheet
AS AT 31 DECEMBER 2023
NOTES
2023
$'000
2022
$'000
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other
Total current assets
Non-current assets
Undeveloped properties
Property, plant and equipment
Government security receivable
Total non-current assets
Total assets
LIABILITIES
Current Liabilities
Temporary bank overdraft
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net deficit
EQUITY
Contributed equity
Reserves
Accumulated losses
Total deficit
7
8
9
10
11
12
13
14
15
16
216,951
87,116
4,229
7,315
785
4,678
8,059
2,924
229,280
102,777
89,856
659
509,005
599,520
828,800
-
25,899
295
309,099
335,293
385
89,856
951
486,187
576,994
679,771
12,253
33,699
284
279,783
326,019
681
956,728
957,409
17
2,120,422
2,120,807
2,456,100
1,283,428
(1,627,300)
(603,657)
19
20
20
1,542,350
1,177,656
387,669
387,912
(3,557,319)
(2,169,225)
(1,627,300)
(603,657)
The above balance sheet should be read in conjunction with the accompanying notes.
Energy Resources of Australia Ltd Annual Report 2023 73
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Balance at 1 January 2022
Loss for the year
Other comprehensive loss
Total comprehensive loss for the year
20
Transactions with owners in their capacity as
owners:
Contributions of equity – net of transaction
cost
Employee share options – value of employee
services
20
CONTRIBUTED
EQUITY
$’000
RESERVE
S
$’000
ACCUMULATED
LOSSES
$’000
NOTES
TOTAL
$’000
1,177,656
388,594
(2,008,672)
(442,422)
-
-
-
-
-
-
-
-
-
-
(682)
(682)
(160,553)
(160,553)
-
-
(160,553)
(160,553)
-
-
-
-
(682)
(682)
Balance at 31 December 2022
1,177,656
387,912
(2,169,225)
(603,657)
Loss for the year
Other comprehensive loss
Total comprehensive loss for the year
Transactions with owners in their capacity as
owners:
Contributions of equity – net of transaction
cost
Employee share options – value of employee
services
20
19
20
-
-
-
364,694
-
-
-
-
-
(243)
364,694
(243)
(1,388,094)
(1,388,094)
-
-
(1,388,094)
(1,388,094)
-
-
-
364,694
(243)
364,451
Balance at 31 December 2023
1,542,350
387,669
(3,557,319)
(1,627,300)
The above statement of changes in equity should be read in conjunction with the accompanying notes.
74 Energy Resources of Australia Ltd Annual Report 2023
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Payments for rehabilitation
Interest received
Financing costs paid
NOTES
2023
$'000
2022
$'000
1,036
75,488
(22,456)
(28,750)
(21,420)
46,738
16
(210,615)
(194,190)
9,429
(640)
1,133
(644)
Net cash (outflow)/inflow from operating activities
26
(223,246)
(146,963)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for Investments in term deposits
Proceeds from Investments in term deposits
Proceeds from government security receivable
Net cash (outflow)/inflow from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Temporary bank overdraft
Repayment of temporary bank overdraft
Proceeds from borrowings
Repayment of borrowings
Proceeds from issues of shares
Share issue transaction cost
Payment of lease liabilities
Employee share option payments
Net cash (outflow)/inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
13
14
14
(79)
1,347
(100,000)
100,000
-
1,268
(227)
2,725
-
-
56,778
59,276
-
12,253
(12,253)
100,000
(100,000)
369,138
(4,444)
(284)
(346)
351,811
129,833
87,116
2
-
-
-
-
-
(300)
(1,009)
10,944
(76,743)
163,872
(13)
Cash and cash equivalents at end of year
7
216,951
87,116
The above cash flow statement should be read in conjunction with the accompanying notes.
Energy Resources of Australia Ltd Annual Report 2023 75
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
1 Summary of material accounting
policies
The principal accounting policies adopted in the
preparation of these financial statements are set out
below. These policies have been consistently applied to
all the years presented, unless otherwise stated. The
financial statements are for Energy Resources of
Australia Ltd (ERA).
(a) Basis of preparation
This general purpose financial report has been
prepared in accordance with Australian Accounting
Standards and interpretations issued by the Australian
Accounting Standards Board, and the Corporations Act
2001. The financial report has been prepared under the
assumption that the Company is a going concern.
(i) Going Concern
As at 31 December 2023, ERA has a deficiency of
capital and reserves of $1,627 million, is in a current
liability position of $106 million and has experienced
operating losses, driven by significant increase in the
rehabilitation estimate, as well as net cash outflows
during the year, also driven by rehabilitation. In light of
this position the Company has closely considered its
near term outlook in relation to its position as a going
concern, particularly the following developments
during 2023:
•
•
•
•
•
ERA has completed a non-underwritten pro
rata renounceable entitlement offer of new
fully paid ERA ordinary shares as an interim
funding measure to fund its planned Ranger
Project Area Rehabilitation expenditure
through to quarter 3, 2024. Approximately
$369 million was raised (before costs) with
the entitlement offer being fully subscribed
(inclusive of the applications under the
Shortfall Facility)
The Company has announced a move to a
programme management approach for
executing the remaining rehabilitation
activities. The programme management
approach is intended to provide greater
certainty and value for shareholders and
stakeholders as it will support optimisation,
risk and uncertainty to be addressed before
funding is requested for activities likely to
occur post 2027 whilst enabling critical path
activities to be progressed
The Company considers it appropriate to
proceed with the 1st tranche of the
programme management scope to 2027
which includes a range of well defined
activities
ERA expects to spend approximately $1.2
billion in undiscounted nominal terms on
rehabilitation activities including studies up
until the end of 2027
Activities post 2027 and estimates of their
cost remain highly uncertain. As such
estimates of expenditure beyond 2027 are
subject to the further study work.
As at 31 December 2023, the Company had no debt
financing in place, $726 million of cash including total
cash resources at bank of $217 million and $509
million in cash which is currently held by the
Australian Government as part of the Ranger
Rehabilitation Trust Fund (“Trust Fund”). The
Australian Government is also holding $125 million in
bank guarantees over the 44th Annual Plan of
Rehabilitation which was finalised in February 2020
(an additional $1 million is held as an allowance for
Jabiluka rehabilitation). Issuers of the bank
guarantees have certain pay and walk rights and the
guarantees are subject to periodic reviews. Should
the banks execute their pay and walk rights or should
ERA be unable to access bank guarantees,
substantial additional cash would be required to
indemnify the banks or be deposited into the Trust
Fund. ERA continues to maintain regular dialogue
with its major relationship banks.
The Company will require additional funding to
complete the rehabilitation of the Ranger Project Area
in accordance with its obligations and commitments.
ERA will engage with Rio Tinto and other
shareholders in relation to a material equity raise in
2024 and the Company has appointed Highbury
Partnership as financial advisor and Herbert Smith
Freehills as legal adviser to the Independent Board
Committee. Ashurst will act as legal adviser to the
Company in relation to the potential equity raise or
other funding options.
The Company notes Rio Tinto’s public statements to
the effect that it is committed to working with ERA to
ensure the rehabilitation of the Ranger Project Area is
successfully achieved to a standard that will establish
an environment similar to the adjacent Kakadu
National Park. Given Rio Tinto subscribed to its full
share of its entitlements in the previous Interim
Entitlement Offer in 2023, the Board considers that
Rio Tinto remains committed to the successful
rehabilitation of the Ranger Project Area.
The Company is required to prepare and submit an
Annual Plan of Rehabilitation (Annual Plan) to the
Australian Government. Once accepted by the
Australian Government, the Annual Plan is then
independently assessed and costed and the amount
to be provided by the Company into the Ranger
Rehabilitation Trust Fund (Trust Fund) is then
determined. The Trust Fund includes both cash and
financial guarantees. ERA has agreed on
amendments to the Ranger Government Agreement
with the Australian Government to introduce a clearer
framework for managing the amount of security held
by the Government and releasing funds from the Trust
Fund for completed rehabilitation works. However,
further transaction of funds between parties under this
framework will first require re-evaluation of the
security arrangement. Given the increase in the cost
of rehabilitating the Ranger Project Area, ERA may be
required to provide additional security or funds in the
Trust Fund.
ERA does not consider that it can rely upon
drawdown of any further cash from the Trust Fund
before the re-evaluation of the security arrangement is
complete.
76 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
As a result of these matters, there is a material
uncertainty that may cast significant doubt on ERA’s
ability to continue as a going concern and, therefore,
that it may be unable to realise its assets and
discharge its liabilities in the normal course of
business. Should additional funding support from its
shareholders not occur ERA would likely have
insufficient cash on hand to continue its current
activities within the foreseeable future. However, the
directors believe that ERA will be successful in
obtaining additional funding support from its
shareholders, and that the Annual Plan security
requirements will continue to be covered by a mix of
cash on deposit, bank guarantees and the funding
from its shareholders. Accordingly, the financial report
has been prepared on a going concern basis.
(ii) Compliance with IFRS
The financial statements of the Company also comply
with International Financial Reporting Standards
(IFRS) as issued by the International Accounting
Standards Board (IASB).
(iii) Historical cost convention
These financial statements have been prepared under
the historical cost convention, except for where
specifically outlined that an alternative basis has been
used within Note 1.
(iv) Critical accounting estimates
The presentation of financial statements requires the
use of certain critical accounting estimates. It also
requires management to exercise its judgement in the
process of applying the accounting policies of the
Company. The areas involving a higher degree of
judgement or complexity, or areas where assumptions
and estimates are significant to the financial
statements, are disclosed in Note 2.
(b) Principles of consolidation
(i) Subsidiaries
ERA has no subsidiaries and is referred to in the
financial report as the Company or ERA.
Subsidiaries are all those entities (including special
purpose entities) over which the Company has the
power to govern the financial and operating policies,
generally accompanying a shareholding of more than
one half of the voting rights. The existence and effect
of potential voting rights that are currently exercisable
or convertible are considered when assessing
whether the Company controls another entity.
(c) Revenue recognition
Revenue is measured at the fair value of the
consideration received or receivable. Amounts
disclosed as revenue are net of returns, trade
allowances, rebates and amounts collected on behalf
of third parties.
The Company recognises revenue when the amount
of revenue can be reliably measured. It is probable
that future economic benefits will flow to the entity and
the criteria pertaining to the transfer of control of
goods or rendering of services has been met as
described in the sections below.
(i) Sale of goods
ERA places all sales through a marketing agreement
with Rio Tinto Marketing PTE Limited (Rio Tinto
Uranium) based in Singapore (Marketing Agreement).
Sales revenue is recognised on individual sales when
control transfers to the customer. This occurs when
the uranium transfers from the Company’s account at
converter locations to its customers account. It is at
this stage under the respective arrangement that the
company no longer can control or direct goods.
There is only one performance obligation, being for
provision of product at the point where control passes.
Sales revenue excludes any applicable sales taxes.
Mining royalties payable are presented as an
operating cost.
Receipts from sales revenue are generally received
30 days from the date of sale.
(ii) Rendering of services
Revenue from the rendering of services is recognised
when the service is provided.
(iii) Other revenue/income
Other revenue/income recognised by the Company
includes:
•
Interest income, which is recognised on a
time proportion basis using the effective
interest rate method
• Rental income, which is recognised on a
straight line basis
• Net gains on disposal of assets, which is
recognised at the date control of the asset
passes to the acquirer
• Contract compensation, which is recognised
•
•
upon cancellation of a sales contract
Foreign exchange gains
Insurance recoveries, which is recognised
on confirmation from the insurer that the
claim payment has been approved.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements are
measured using the currency of the primary economic
environment in which the entity operates (“the
functional currency”). The financial statements are
presented in Australian dollars, which is the
Company’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation at year end exchange rates of monetary
assets and liabilities denominated in foreign
currencies are recognised in the statement of
comprehensive income; except when they are
deferred in equity as qualifying cash flow hedges and
Energy Resources of Australia Ltd Annual Report 2023 77
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
qualifying net investment hedges or are attributable to
part of the net investment in a foreign operation.
(e) Financing costs
Financing costs (including interest) are included in the
statement of comprehensive income in the period
during which they are incurred.
(f)
Income tax
Income tax expense for the period is the tax
payable on the current period’s taxable income
based on the applicable income tax rate adjusted
by temporary differences between the tax bases
of assets and liabilities and their carrying amounts
in the financial statements, and of unused tax
losses.
The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the end of the reporting period in the country where
the Company generates taxable income (Australia).
Deferred income tax is provided in full, using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts in the financial statements.
However, deferred tax liabilities are not recognised if
they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted if it arises
from initial recognition of an asset or liability in a
transaction other than a business combination that at
the time of the transaction affects neither accounting
nor taxable profit or loss and does not give rise to
equal taxable and deductible temporary differences.
Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially
enacted by the reporting date and are expected to
apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible
temporary differences and unused tax losses only if it
is probable that future taxable amounts will be
available to utilise those temporary differences and
losses.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax
balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.
Current and deferred tax balances attributable to
amounts recognised directly in equity are also
recognised directly in equity.
(i) New standards and amendments
applicable for the current period Deferred
Tax related to Assets and Liabilities
arising from a Single Transaction
(Amendments to IAS 12 'Income Taxes'
(IAS 12), mandatory in 2023 and endorsed
by the UK)
At 1 January 2023, ERA adopted narrow-scope
amendments to AASB 112 Income Taxes i.e. AASB
2021-5 Amendments to Australian Accounting
Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction and have
restated comparative periods in accordance with the
transition arrangements. These amendments
introduce an exclusion to the initial recognition
exemption application for transactions giving rise to
equal and offsetting taxable and deductible temporary
differences.
Under the amendments, separate deferred tax assets
and liabilities are calculated and recognised, prior to
application of any required recovery testing and
permitted offsetting, and subsequent movements in
those deferred tax assets and liabilities are
recognised in the income statement.
The most significant impact of implementing these
amendments was from temporary differences related
provisions for close down and restoration, and lease
obligations and corresponding capitalised closure
costs and right-of-use assets, where applicable to the
Company.
Adjustments to deferred tax assets and liabilities
related to these balances have not been recognised
as at 1 January 2022, being the beginning of the
earliest comparative period to be presented in the
financial statements for the year ended 31 December
2023, in line with the recognition criteria established
above.
(g) Trade and other receivables
Trade receivables are recognised at fair value. The
company applies the forward looking expected credit
loss model required by AASB 9, using the simplified
approach for its trade receivables portfolio review and
the general approach for all other financial assets as
required by the standard.
Trade receivables are normally settled within 45 days
and are carried at amounts due. The collectability of
trade receivables is reviewed on an ongoing basis
and specific provisions are made for any doubtful
amounts. Receivables which are known to be
uncollectible are written off.
Other receivables relate to transactions outside the
usual operating activities of the Company and are
predominantly concerned with rental receipts from
employees and businesses located within the Jabiru
township. These ongoing activities are expected to be
settled during the 12 months subsequent to balance
date but are assessed regularly and impaired
accordingly.
(h) Financial instruments
Financial assets and financial liabilities are recognised
in ERA’s balance sheet when ERA becomes a party
to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from
the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at
78 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
fair value through profit or loss are recognised
immediately in profit or loss.
Management uses valuation techniques to determine
the fair value of financial instruments (where active
market quotes are not available) and non-financial
assets. This involves developing estimates and
assumptions consistent with how market participants
would price the instrument. Management bases its
assumptions on observable data as far as possible,
but this is not always available. In that case
management uses the best information available.
Estimated fair values may vary from the actual prices
that would be achieved in an arm’s length transaction
at the reporting date.
(i) Fair value measurement
When measuring the fair value of its assets and
liabilities, the Company uses observable market data.
All assets and liabilities measured at fair value,
including hedging instruments, use Level 1 valuation
techniques: quoted prices (adjusted) in active markets
for identical assets or liabilities.
(i)
Inventories
Inventories are carried at the lower of cost and net
realisable value. Net realisable value for uranium is
determined based on estimated future sales prices,
exchange rates and capital and production costs,
including transport. Net realisable value for stores is
determined based on management’s estimate of the
extent to which the inventory is usable.
Inventory is valued using the weighted average cost
method and includes both fixed and variable
production costs, as well as cash and non-cash
charges. For stores, the costing includes solely
material purchase prices.
Stores are valued at the lower of cost or net realisable
value and are impaired accordingly to take into
account obsolescence. The Company discloses
obsolescence changes in Note 9.
(j)
Impairment of assets
Assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair
value, less cost to sell and value in use. For the
purposes of assessing impairment, assets are
grouped at the lowest levels for which there are
separately identifiable cash flows (cash generating
units).
Fair value is determined as the amount that would be
obtained from the sale of the asset in an arm’s length
transaction.
The value in use is determined using the present
value of the future cashflow expected to be derived
from an asset or cash generating unit.
(k) Property, plant and equipment
(i) Acquisition
Items of property, plant and equipment are recorded
at historical cost and, except for land, are depreciated
over their useful life. Historical cost includes
expenditure that is directly attributable to the
acquisition of the items. Subsequent costs are
included in the asset’s carrying amount, or recognised
as a separate asset – as appropriate, only when it is
probable that future economic benefits associated
with the item will flow to the Company and the cost of
the item can be measured reliably. Repairs and
maintenance are charged to the statement of
comprehensive income during the period in which
they are incurred.
(ii) Depreciation and amortisation
All ERA’s property, plant and equipment (excluding
right of use assets) is currently fully impaired.
Property, plant and equipment expenditure incurred is
recorded directly in other expenses.
(l) Leases
Leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Company. Each lease
payment is allocated between the liability and finance
cost. The finance cost is charged to profit or loss over
the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability
for each period.
The right-of-use asset is shown as a non-current
asset and depreciated over the shorter of its useful life
and the lease terms on a straight line basis. As right-
of-use assets represent an economic benefit they are
not impaired, as is the case for other Ranger Cash
Generating Unit (CGU) assets.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the following lease
payments:
•
•
•
•
•
•
Fixed payments (including in-substance
fixed payments), less any lease incentives
receivable
Variable lease payment that are based on
an index or a rate
Amounts expected to be payable by the
lessee under residual value guarantees
The exercise price of a purchase option if
the lessee is reasonably certain to exercise
that option
Payments of penalties for terminating the
lease, if the lease term reflects the lessee
exercising that option
The lease payments are discounted using
the interest rate implicit in the lease. If that
rate cannot be determined, the incremental
borrowing rate is used.
Right-of-use assets are measured at cost comprising
the following:
•
The amount of the initial measurement of
lease liability
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NOTES TO THE FINANCIAL STATEMENTS
•
•
•
Any lease payments made at or before the
commencement date less any lease
incentives received
Any initial direct costs
Restoration costs.
Payments associated with short-term leases and
leases of low value assets are recognised as an
expense in the statement of comprehensive income.
Short term leases are leases with a lease term of
twelve months or less.
Treatment of lease agreements recognised in the
rehabilitation provision
Lease payments have been contemplated in the
rehabilitation provision. However, once a lease for
equipment to be used in rehabilitation activities is
entered into a separate lease liability and a right-of-
use asset is recognised. The rehabilitation obligation
is not extinguished by entering into a lease, instead,
the rehabilitation obligation is extinguished over time
as the leased asset is put to use in executing the
rehabilitation program.
Lease payments are allocated to the lease liability,
with the interest component allocated to financing cost
in the statement of comprehensive income.
Where the right-of-use asset resulting from the lease
arrangement is to be used exclusively for
rehabilitation, it represents an economic resource
which will have a future use in the completion of
rehabilitation activity. As such the right-of-use asset is
not impaired as is the case for other non-lease
Ranger Cash Generating Unit (CGU) assets.
When the right-of-use asset is depreciated, the
depreciation charge is allocated to the rehabilitation
provision to reduce the outstanding amount provided
for in the rehabilitation provision.
(m) Exploration and evaluation expenditure
Exploration and evaluation expenditure comprises
costs which are directly attributable to:
•
•
•
•
•
Researching and analysing existing
exploration data
Conducting geological studies, exploratory
drilling and sampling
Construction of underground tunnels, where
necessary for exploration drilling
Examining and testing extraction and
treatment methods
Compiling prefeasibility and feasibility
studies.
Exploration and evaluation expenditure also includes
the costs incurred in acquiring mineral rights, the entry
premiums paid to gain access to areas of interest and
amounts payable to third parties to acquire interests in
existing projects.
Capitalisation of exploration expenditure commences
when there is a high degree of confidence in the
projects viability and hence it is probable that future
economic benefits will flow to the Company.
Capitalised exploration expenditure is reviewed for
impairment indicators at each balance sheet date.
Exploration and evaluation assets are tested for
impairment when any of the following facts and
circumstances exist:
•
•
•
•
The term of exploration licence in the
specific area of interest has expired during
the reporting period or will expire in the near
future, and is not expected to be renewed;
Substantive expenditure on further
exploration and evaluation of mineral
resources in the specific area are not
budgeted or planned;
Exploration for and evaluation of mineral
resources in the specific area have not led
to the discovery of commercially viable
quantities of mineral resource and the
decision was made to discontinue such
activities in the specific area; or
Sufficient data exists to indicate that,
although development in the specific area of
interest is likely to proceed, the carrying
amount of the exploration and evaluation
asset is unlikely to be recovered in full from
successful development or by sale.
Subsequent recovery of the resulting carrying value
depends on successful development of the area of
interest or sale of the project. If a project does not
prove viable, all unrecoverable costs associated with
the project and the related impairment provisions are
written off. Any impairment provisions raised in
previous years are reassessed if there is a change in
circumstances, which indicates that they should be
reviewed; for example, if it is decided to proceed with
development. If the project proceeds to development
the amounts included within intangible assets are
transferred to property, plant and equipment.
(i) Undeveloped properties
Undeveloped properties are mineral concessions
where the intention is to develop and go into
production in due course. The carrying values of
these assets are reviewed annually by management
and the results of these reviews are reported to the
Board and Audit and Risk Committee. For accounting
purposes, the company reviews for evidence of
impairment indicators at each reporting date and,
where identified, the recoverable amount is estimated.
(n) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net
of the amount of associated GST, unless the GST
incurred is not recoverable from the taxation authority.
In this case it is recognised as part of the cost of
acquisition of the asset, or as part of the expense.
Receivables and payables are stated inclusive of the
amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the
taxation authority is included with other receivables or
payables in the balance sheet.
80 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
(o) Trade and other payables
Liabilities are recognised for amounts to be paid in the
future for goods and services received prior to the end
of the financial year, whether or not billed to the
Company. Trade accounts payable are normally
settled within 60 days. These are recognised initially
at their fair value and subsequently measured at
amortised cost using the effective interest rate
method.
(p) Provisions
Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
has been reliably estimated. Provisions are not
recognised for future operating losses.
Provisions are measured at the present value of
management’s best estimate of the expenditure,
adjusted for risk, required to settle the present
obligation at the balance sheet date. The discount
rate used to determine the present value reflects
current market assessments of the time value of
money. The increase in the provision due to the
passage of time is recognised as financing costs.
accepted by the Australian Government, the Annual
Plan is then independently assessed and costed and
the amount to be provided by the Company into the
Trust Fund is then determined.
The Trust Fund includes both cash and financial
guarantees. The cash portion is shown as a
government security receivable on the balance sheet
(Note 13), and interest received by the Trust Fund is
shown as interest income. The balance of bank
guarantee is shown at Note 13.
Government security receivable balances are split
between current and non-current assets based on
management’s estimate as to when cash will be
received from the Australian Government.
The Company is required to rehabilitate the Jabiluka
Mineral Lease upon cessation of operations to a
standard specified by the Authorisation to operate
issued by the Northern Territory Government. The
estimated cost of rehabilitation is currently secured by
a bank guarantee of $1 million. The Jabiluka Mineral
Lease remains under a Long Term Care and
Maintenance Agreement and will not be developed
without the approval of Mirarr Traditional Owners.
(q) Employee entitlements
(i) Rehabilitation
(i) Wages and salaries, annual leave and sick
The Company is required to rehabilitate the Ranger
Project Area upon cessation of mining operations,
which occurred on 8 January 2021. The process
undertaken to estimate these costs is detailed further
in note 2(a) below.
The amortisation or unwinding of the discount applied
in establishing the net present value of provisions is
charged to the statement of comprehensive income in
each accounting period. The amortisation of the
discount is shown as a financing cost. Other
movements in the provision for closure and
restoration costs, including those resulting from new
disturbance, updated cost estimates, changes to lives
of operations and revisions to discount rates are
allocated directly to the statement of comprehensive
income.
Costs are allowed for in the closure provision when
they are directly related to rehabilitation of the Ranger
Project Area. Costs incurred to operate and manage
the site whilst uranium oxide production was occurring
were allocated to operating costs. The operation of
the Brine Concentrator, pond water management and
power station are costs that were allocated to
operating costs up until production of uranium oxide
ceased (8 January 2021). Following cessation of
uranium oxide production these costs are allocated to
the closure provision. Costs associated with non-
rehabilitation corporate activities remain in operating
costs and so are not provided for.
Separately, the Company is required to maintain the
Ranger Rehabilitation Special Account (Trust Fund)
with the Australian Government. The Trust Fund is
intended to provide security against the estimated
costs of closing and rehabilitating the Ranger Project
Area immediately. The Company is required to
prepare and submit to the Australian Government an
Annual Plan of Rehabilitation (Annual Plan). Once
leave
The liability for employee entitlements to wages and
salaries represents the amount which the Company
has a present obligation to pay, resulting from
employees’ services provided up to the reporting date.
A provision exists for annual leave and accumulating
sick leave as it is earned by employees and is
measured at the amount expected to be paid when it
is settled and includes all related on-costs. Liabilities
for non-accumulating sick leave are recognised when
the leave is taken and measured at the rates paid or
payable.
(ii) Long service leave
The liability for long service leave expected to be
settled within 12 months of the reporting date is
recognised in the provision of employee benefits and
is measured in accordance with (i) above. The liability
for long service leave expected to be settled more
than 12 months from the reporting date is measured
as the present value of expected future payments to
be made in respect of services provided by
employees up to the reporting date. Consideration is
given to the expected future wage and salary levels,
experience of employee departures and periods of
service.
Expected future payments are discounted using the
rates attaching to Australian Government securities at
the reporting date, which most closely match the
terms of maturity of the related liabilities.
(iii) Superannuation plan
Employees of the Company are entitled to benefits on
retirement, disability or death from their membership
of the Rio Tinto Staff Superannuation Fund (“The
Fund”). The Fund has both a defined benefit and a
defined contribution section. Contributions to the
Energy Resources of Australia Ltd Annual Report 2023 81
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
defined contribution superannuation plans are
expensed in the income statement when incurred.
The Company has no staff who are members of the
defined benefits section.
(iv) Termination benefits
Termination benefits are payable when employment is
terminated before the normal retirement date, or when
an employee accepts voluntary redundancy in
exchange for these benefits. The Company
recognises termination benefits when it is
demonstrably committed to either terminating the
employment of current employees according to a
detailed formal plan without possibility of withdrawal
or to providing termination benefits as a result of an
offer made to encourage voluntary redundancy.
(r) Segment reporting
Management has determined the operating segments
based on the reports reviewed by the Chief Executive,
used to make strategic decisions. The Chief Executive
considers the business from a product perspective.
(s) Cash and cash equivalents
For the purposes of the statement of cash flows, cash
includes cash on hand and deposits held at call.
Cash instruments that qualify as cash equivalents
have an original maturity date no greater than three
months.
(t) Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental
costs directly attributable to the issue of new shares
or options for the acquisition of a business are not
included in the cost of the acquisition as part of the
purchase consideration.
(u) Earnings per share
(i) Basic earnings per share
Basic earnings per share is determined by dividing net
profit after income tax attributable to members of the
Company, excluding any costs of servicing equity
other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary
shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account the after income tax effect of interest and
other financing costs associated with dilutive potential
ordinary shares and the weighted average number of
shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary
shares.
(v) Rounding of amounts
The Company is of a kind referred to in Class Order
2016/191, issued by the Australian Securities and
Investments Commission, relating to the ‘rounding off’
of amounts in the financial report. Amounts in the
financial report have been ‘rounded off’ in accordance
with that Class Order to the nearest thousand dollars,
or in certain cases, to the nearest dollar.
(w) Share based payments
The fair value of cash settled share plans is
recognised as a liability over the vesting period of the
awards. Movements in that liability between
accounting dates are recognised as an expense. The
grant date fair value of the awards is taken to be the
market value of the shares at the date of award. Fair
values are subsequently re-measured at each
accounting date to reflect the number of awards
expected to vest based on the current and anticipated
TSR performance. If any awards are ultimately settled
in shares, the liability is transferred direct to equity as
the consideration for the equity instruments issued.
Equity settled share plans are settled either by the
issue of shares by the relevant parent Company, by
the purchase of shares on market or by the use of
shares previously acquired as part of a share
buyback. The fair value of the share plans is
recognised as an expense over the expected vesting
period with a corresponding entry to other reserves.
If the cost of shares acquired to satisfy the plans
exceeds the expense charged, the excess is taken to
the appropriate reserve. The fair value of the share
plans is determined at the date of grant, taking into
account any market based vesting conditions
attached to the award (e.g. TSR). The Company uses
fair values provided by independent actuaries
calculated using a lattice based option valuation
model. Non-market based vesting conditions (e.g.
earnings per share targets) are taken into account in
estimating the number of awards likely to vest.
The estimate of the number of awards likely to vest is
reviewed at each balance sheet date up to the vesting
date, at which point the estimate is adjusted to reflect
the actual awards issued. No adjustment is made
after the vesting date even if the awards are forfeited
or not exercised.
Further information about the treatment of individual
share based payment plans is provided in Note 30.
(x) Standards issued but not yet effective
A number of new standards are effective for annual
periods beginning after 1 January 2023 and earlier
application is permitted. However, the Company has
not adopted the new or amended standards in
preparing these financial statements. Management
has also concluded that when those new standards
become applicable and are adopted there will be no
anticipated material impact to the balances and
transactions of the Company.
82 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
2 Critical accounting estimates
and judgements
Estimates and judgements are continually evaluated
and are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the Company and that
are believed to be reasonable under the
circumstances.
The Company makes estimates and assumptions
concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related
actual results. The estimates and assumptions that
have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed
below.
(a) Rehabilitation provision
The calculation of the rehabilitation provision relies on
estimates of costs and their timing to rehabilitate and
restore disturbed land to establish an environment
similar to the adjacent Kakadu National Park in line
with the Company’s statutory obligations.
The costs are estimated on the basis of a closure
plan, taking into account considerations of the
technical closure options available to meet ERA’s
obligations. The provision for rehabilitation represents
the net present cost at 31 December 2023 of the
preferred plan and represents management’s best
estimate of costs.
At 31 December 2023, the ERA rehabilitation
provision was $2,420 million, being a net increase of
$1,195 million from the previous period.
Of the increase in the provision, approximately 85% of
the increase is attributable to rehabilitation activities
post 2027. An extension in schedule to achievement
of final landform (FLF) has been a significant factor in
driving additional estimated project costs. This
extension is primarily due to a reassessment of the
time taken to achieve Pit 3 consolidation, with a
secondary driver being the transition to lower
technical risk Pit 3 capping methods removing
previously estimated schedule synergies. In addition
to schedule increased estimates in water volumes
requiring treatment have driven higher variable costs
of treatment against prior year estimates with the
overall long-term performance of the water treatment
plant being below the planned performance in ERA's
previously assumed water treatment strategy. ERA
will continue to pursue initiatives to improve the
performance of the water treatment plants in line with
its revised water treatment strategy. Estimated bulk
material movement costs have also been forecasted
to increase materially due to higher unit costs than
previously estimated with some additional scope
relating to catchment conversion activities also driving
an increase in cost.
ERA expects to spend approximately $1.2 billion in
undiscounted nominal terms on rehabilitation activities
including studies up until the end of 2027. Activities
post 2027 and estimates of their costs remain highly
uncertain. These activities remain subject to a number
of studies and are also potentially sensitive to external
events. As such estimates of expenditure beyond
2027 are subject to the further study work detailed
below.
During 2023, ERA incurred expenditure of $211
million on rehabilitation activities with progressive
rehabilitation of the Ranger Project Area continuing
with several key milestones achieved.
The capping of Pit 3 remains a critical path activity,
including the Pit 3 backfill approval application.
Wicking commenced in November 2022 in the eastern
end of Pit 3 and the final wick was installed on 9 April
2023. Pit 3 backfill approval application was
resubmitted to the Northern Territory governing
agency during the September 2023 quarter. Final
approval of the backfill application is expected in the
later part of quarter 1, 2024.
Preparation for the dry capping of Pit 3 has continued
to progress. Upon the successful dewatering of Pit 3,
the next step will be to lay geofabric which will protect
the tailings during capping activities followed by
further initial capping activities.
Progress was made during the year to mobilise
equipment to be used to accelerate the drying of Pit 3
within the completed wicked zone. Additional
specialised drying equipment is expected to be
delivered early in 2024.
The Brine Squeezer process water treatment upgrade
work progressed reaching completion during the last
quarter of 2023 including regulatory approval to
operate. This upgrade will allow additional treatment
of process water from the Ranger Water Dam.
While performance against operational plan volumes
has improved in 2023, treatment rates of process
water through the Brine Concentrator has continued
below the planned performance assumed in ERA’s
previous water management strategy. Progress is
being made in identifying and implementing strategies
that improve plant reliability and production
consistency. Although water quality has been
challenging this year, high quality on specification
distillate continues to be produced. Process
improvement initiatives continue to be a key focus
area.
During 2023, the Jabiru housing refurbishment
program continued to progress including the release
of further properties. ERA is progressively working on
the transfer of properties to enable tenanting by third
parties.
Overall, factors including a tight labour market and
remnant supply chain constraints continue to impact
the project.
The ultimate cost of rehabilitation is uncertain and can
vary in response to many factors including legal
requirements, technological change, weather events
and market conditions. As previously announced
ERA received outcomes and data from the 2022
Feasibility Study in October 2023 that require more
analysis and separate studies, including but not
limited to:
•
Investigating alternative lower cost solutions
for the management of water inventories
requiring treatment
Energy Resources of Australia Ltd Annual Report 2023 83
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
•
• Development of sediment and erosion
control solutions to optimise release of
water from rehabilitated landforms
Evolution of the final landform design and
construction to optimise the movement of
bulk materials and appropriately manage
late-stage closure sequencing
Investigating alternative lower cost options
for site simplification and opportunities for
cost optimisation of post-closure monitoring
and maintenance
Value engineering and safety in design
investigations.
•
•
The Company will use the outcomes from the studies
to attempt to optimise rehabilitation cost, schedule and
risk. Activities post 2027 and estimates of their cost
remain highly uncertain and are also potentially
sensitive to external events. As such it is reasonably
possible that outcomes from within the next financial
year may be different from the current cost estimate
and could
the
rehabilitation provision for the Ranger Project Area.
require material adjustment
to
Selected risks for the Ranger rehabilitation provision
are detailed below.
Tailings consolidation
During the capping and backfill of Pit 3, the capped
tailings will consolidate, and express process water
will need to be collected and treated. The installation
of vertical wicks during 2023 has accelerated the rate
of tailings consolidation.
The timeframe for completing tailings consolidation is
supported by a detailed tailings consolidation model
that is based on in-situ testing of site tailings. The
consolidation model’s prediction of the rate of tailings
consolidation is impacted by many factors, including
the tailings characteristics, progressing Pit 3 capping
and backfill, and the ability to remove the expressed
water from the tailings.
Forecasts for the practical completion of tailings
consolidation and the end of process water collection
have been extended because of changes in Pit 3
capping method and schedule, changes in the
assumed degree to which expressed water needs to
be collected to satisfy environmental constraints and
other changes in tailings model assumptions. This
extension has been a contributing factor to the
increase in estimated rehabilitation costs reported at
31 December 2023.
The cost and schedule of completing rehabilitation
could be adversely impacted If tailings consolidation
timeframes or the timeframe for the end of process
water collection extend further.
Water treatment and injection of waste brines
Overall long-term performance of the water treatment
plant has been below the planned performance in
ERA's previously assumed water treatment strategy.
This has been a contributing factor to an increase in
estimated rehabilitation costs reported at 31
December 2023. ERA will continue initiatives to
improve the performance of the water treatment
plants in line with its revised water treatment strategy.
Further deficits in performance of this infrastructure
84 Energy Resources of Australia Ltd Annual Report 2023
against targets established in the revised strategy
may produce further delays in completing the Ranger
Rehabilitation Project.
To the extent that any of these initiatives cost more
than expected or ERA is required to implement further
initiatives (such as installing additional water
treatment infrastructure), the rehabilitation cost may
increase further.
A waste stream of contaminated salt is generated as
a result of treating processed water. The salt is
ultimately to be stored below tailings in Pit 3 by
injecting the brine through boreholes. These
technologies have been commissioned but the long
term performance is yet to be fully confirmed. An
alternate method of salt disposal would be required if
disposing the salt in this way does not prove viable.
This would require additional capital expenditure,
which has not been allowed for in the rehabilitation
estimate or the resulting provision.
Bulk material movement
Large scale bulk material backfill and landform
shaping will occur once Pit 3 is capped. Bulk material
movements are sensitive to the volume of material
which is to be moved and the schedule of movement.
Changes in estimated bulk material movement unit
rates against previous estimates have been a
contributing factor to the increase in estimated
rehabilitation costs reported at 31 December 2023.
There may be further material impact on the
rehabilitation cost or schedule if volumes or costs of
movement change.
Other factors
In addition to the factors identified above there are
many additional items that could impact the estimate.
These include increase in water treatment volumes
from rainfall or other sources, rehabilitation time
frames, evaporation rates, stakeholder requirements,
higher costs of relinquishing Jabiru township housing,
engineering studies, other site contaminants, plant
mortality and project support costs.
In estimating the rehabilitation provision, a risk-free
discount rate is applied to the underlying cash flows.
At 31 December 2023, the real discount rate was 2%,
this was increased from 1.5% at 31 December 2022
as a result of changes in macro-economic conditions.
Cash flow timing
The company estimates the presentation of its
rehabilitation provision between current and non-
current liabilities, based on anticipated timing of
expenditure from updated cash flow forecasts.
(b) Taxation
ERA has approximately $321 million tax losses (at
30%) that are not recognised as deferred tax assets
due to uncertainty regarding ERA’s ability to generate
adequate levels of future taxable profits. This
treatment is reviewed at each reporting date. Should
future taxable profits eventuate this treatment will not
impact ERA’s ability to utilise available tax losses in
future periods.
NOTES TO THE FINANCIAL STATEMENTS
Comparative information has been restated to reflect
the adoption of narrow scope amendments to IAS12
'Income Taxes', refer to note 5 for details.
Judgement is required in regard to the application of
income tax legislation. There is an inherent risk and
uncertainty in applying these judgements and a
possibility that changes in legislation will impact the
carrying amount of deferred tax assets and deferred
tax liabilities recognised on the balance sheet.
(c) Asset carrying values
ERA has two cash generating units (CGUs); the
Ranger Project Area and the Jabiluka Mineral Lease.
The Ranger CGU includes all assets and liabilities
related to activities on the Ranger Project Area,
including the rehabilitation provision. The Jabiluka
Undeveloped Property relates to the Jabiluka Mineral
Lease, which is currently under a Long-Term Care
and Maintenance Agreement with Traditional Owners.
At 31 December 2023 the property, plant and
equipment in the Ranger CGU continues to be fully
impaired. When capital expenditure is incurred, it is
immediately expensed to the Statement of
Comprehensive Income. For the year ended 31
December 2023, $0.08 million in capital expenditure
was expensed.
ERA assesses whether there are any indications that
ERA’s CGUs may be impaired, or circumstances have
changed to indicate reversal of prior impairments at
the end of each reporting period. This requires
judgement in analysing possible impacts caused by
factors such as the price of uranium oxide, foreign
exchange movements, Mineral Lease extension,
operating and capital estimates, discount rate, project
progression and Traditional Owner relationships.
(d) Undeveloped properties judgements
Undeveloped properties are considered assets not yet
ready for use under AASB 6 Exploration for and
Evaluation of Mineral Resources. In reporting periods
where impairment testing is required, the recoverable
amount of the undeveloped properties was
determined using the fair value less costs of disposal
method. Undeveloped properties consist of the
Jabiluka Mineral Lease.
The Jabiluka Mineral Lease is currently subject to a
Long Term Care and Maintenance Agreement with
Traditional Owners. This agreement ensures the
Jabiluka deposit will not be developed without the
approval of the Mirarr Traditional Owners. It is
uncertain that this approval will be forthcoming and,
by extension, that the Jabiluka deposit will be
developed. Should this approval not eventuate in the
future, the Jabiluka Undeveloped Property would face
full impairment. An impairment of $90 million was
recorded in 2018.
The valuation of the Jabiluka Mineral Lease requires a
high degree of judgment. To determine the fair value,
ERA has historically used a probability weighted
discounted cash flow model, based on post-tax cash
flows expressed in real terms, estimated until the end
of the life of mine plan and discounted using an asset
specific post-tax real discount rate. These results
have historically been cross checked against market
valuations of other undeveloped mining projects in the
uranium industry and the broader mining sector,
including market valuations of mining assets subject
to long term approval constraints as well as general
commodity price outlooks and macro-economic data.
ERA regularly reviews and updates these
assumptions and assesses potential impairment
indicators and impairment reversal indicators. In
December 2023, the review did not identify any
indicators that the carrying amount of the Jabiluka
Undeveloped Property may not be recovered in full
from successful development or sale. This review
primarily considered the following key factors:
•
•
•
•
•
The successful interim entitlement offer and
market capitalisation exceeding net assets
The ongoing strength of the uranium spot
price
Valuation technique and resource multiples
Long term consensus forecast
Australian/US dollar exchange rates
Applicable discount rate.
The review of these factors did not identify any
material changes that would warrant a full impairment
or impairment reversal review to be conducted. As a
result, the carrying value of the Jabiluka Undeveloped
Property remains at $90 million.
Further, ERA hold the view that the critical
determinants of the value of Jabiluka include:
•
•
•
The Long Term Care and Maintenance
Agreement, signed with the Northern Land
Council and Traditional Owners
A better understanding of the cultural
landscape of MLN1
The outcome of an application for renewal
of the MLN1 lease, due in August 2024.
Management considered that until this work is
completed no further impairment or reversal of prior
impairment was warranted.
Key assumptions to which the Jabiluka model is
sensitive include: the probability of future
development (which includes an assessment of
obtaining any required approval and/or support of
various stakeholders, including Traditional Owners,
regulatory bodies and shareholders), long term
uranium oxide prices (including term contract price
premiums in the future), foreign exchange rates,
production and capital costs, discount rate, ore
reserves and mineral resources, lease tenure renewal
(August 2024) and development delays.
ERA’s view remains that Jabiluka is a large, high
quality uranium ore body of global significance.
(e) Employee benefits judgements
The employee benefits relate to annual leave and
long service leave. Following the final severance
payment in November, the provision of benefits
payable on termination was $ Nil as at 31 December
2023 (2022: $1.0M). The provision was reviewed at
year end to ensure the provision reflects
management’s best estimate of the benefits payable,
and management determined that the recognition
Energy Resources of Australia Ltd Annual Report 2023 85
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
requirements of the accounting standard had not been
met as at 31 December 2023.
Management continues to monitor the triggers for
recognition of employee severance costs in
conjunction with updates to the Ranger Rehabilitation
Project execution required scopes of work and
business operational requirements.
86 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
3 Revenue
REVENUE FROM CONTINUING OPERATIONS
Sale of goods
Total sales revenue
Other revenue
Interest received/receivable, other parties
Rent received
Asset sales and recoveries
Net gain on non-hedge forward contracts
Total other revenue
Total revenue from continuing operations
4 Expenses
PROFIT BEFORE INCOME TAX INCLUDES
THE FOLLOWING SPECIFIC EXPENSES:
Cost of sales
Produced product (uranium oxide)
Total cost of sales
Government and other royalties
Royalty payments
Payments to Indigenous interests
Total government and other royalties
Financing costs
Other parties
Unwinding of discount (rehabilitation provision)
Total financing costs
Other expenses
Property, plant and equipment expensed
Office and other expenses
Total other expenses
Other individually significant expenses
Short term and low value leases
Interest expense related to leases
Sustainability payment to Indigenous interests
Defined contribution superannuation expense
2023
$’000
-
-
32,246
516
1,420
-
34,182
34,182
2022
$’000
35,555
35,555
9,257
824
2,879
6,794
19,754
55,309
NOTES
2023
$’000
2022
$’000
22
22
17
12
-
-
-
-
-
640
56,633
57,273
79
16
95
32
8
-
315
22,524
22,524
440
1,496
1,936
643
105,824
106,467
227
21
248
11
8
2,172
419
Energy Resources of Australia Ltd Annual Report 2023 87
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
5 Income tax expense/(benefit)
INCOME TAX EXPENSE/(BENEFIT)
Current tax
Deferred tax
Income tax expense/(benefit)
Deferred income tax (revenue)/expense included in income tax expense comprises:
Decrease/(increase) in deferred tax assets (Note 18B)
(Decrease)/increase in deferred tax liabilities (Note 18A)
Deferred tax
2023
$’000
2022
$’000
-
-
-
258
(258)
-
-
-
-
16,591
(16,591)
-
RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE
Operating loss before income tax
Tax at the Australian tax rate of 30% (2022: 30%)
(1,388,094)
(160,553)
(416,428)
(48,166)
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Current year movement in DTA not recognised
416,424
48,161
Rehabilitation expenditure
Other items
Income tax expense/(benefit)
-
4
-
-
4
-
No deferred tax asset is recognised due to uncertainty over ERA’s ability to generate future taxable profits.
Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income
Taxes', refer to note 2b for details.
Future tax developments
The Organisation for Economic Co-operation and Development’s (OECD) Pillar Two has not been substantively
enacted in Australia as at 31 December 2023. As the Pillar Two legislation was not operative at the reporting date,
the Company has no related current tax exposure.
The Company has applied the temporary mandatory exception from deferred tax accounting for Pillar Two available
under AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model
Rules released in June 2023.
6 Dividends
Dividends paid or declared
No dividends have been paid or declared for the year ended 31 December 2023 (2022: nil).
Dividends franking account
Franking credits available for subsequent financial years
based on a tax rate of 30% (2022: 30%)
2023
$’000
2022
$’000
234,095
234,095
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for
franking credits that will arise from the payment of the amount of the provision for income tax as applicable.
The ability to utilise the franking account credits is dependent upon there being sufficient available profits to declare
dividends.
7 Cash and cash equivalents
88 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
CURRENT
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
Cash at bank/Deposits at call
2023
$’000
2022
$’000
30,517
186,434
216,951
87,116
-
87,116
Cash assets and deposits bear floating interest rates between 0% and 5.43% (2022: 0% and 4.10%).
Interest rate risk exposure
The Company’s exposure to interest rate risk is discussed in Note 28.
8 Trade and other receivables
CURRENT
Trade debtors
Amounts due from related parties
Other debtors
Total trade and other receivables
Impairment of receivables
2023
$’000
2,728
20
1,481
4,229
2022
$’000
2,536
2
2,140
4,678
No trade receivables are past due. There is no impairment of trade receivables.
Other debtors relate to transactions outside the usual operating activities of the Company and are predominately
concerned with receipts from employees and businesses operating within the Jabiru township. These ongoing
activities are expected to be settled during the 12 months subsequent to balance date.
Foreign exchange and interest rate risk
The Company deals with international vendors and is primarily exposed to foreign exchange risk arising from
currency exposures with respect to the US dollar.
A summarised analysis of the sensitivity of trade and other receivables to foreign exchange and interest rate risk can
be found in Note 28.
Fair value and credit risk
Due to the short term nature of trade and other receivables their carrying amount approximates their fair value.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables
mentioned above.
The Company does not hold any collateral as security. Refer to Note 28 for more information on the financial risk
management policy of the Company.
Energy Resources of Australia Ltd Annual Report 2023 89
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
9 Inventories – current
Stores and spares
Total current inventory
Inventory expense
2023
$’000
7,315
7,315
2022
$’000
8,059
8,059
Obsolescence of inventory (stores and spares) provided for and recognised as an expense during the year ended 31
December 2023 amounted to $758,939 (2022: $nil). This amount has been included in Materials and Consumables
used within the statement of comprehensive income.
10 Other assets
Prepayments
2023
$’000
2022
$’000
785
2,924
90 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
11 Undeveloped properties
Jabiluka: Long Term Care and Maintenance Development Project
Balance brought forward
Total undeveloped properties
2023
$’000
2022
$’000
89,856
89,856
89,856
89,856
Undeveloped properties are considered an asset not yet ready for use. In reporting periods where impairment testing
was required, the recoverable amount of undeveloped properties was determined using the fair value, less costs of
disposal method.
To determine the fair value, ERA has historically used a probability weighted discounted cash flow model, based on
post-tax cash flows expressed in real terms, estimated until the end of the life of mine plan and discounted using an
asset specific post-tax real discount rate. These results have historically been cross checked against market
valuations of other undeveloped mining projects in the uranium industry and the broader mining sector, including
market valuations of mining assets subject to long term approval constraints.
ERA regularly reviews and updates assumptions and assesses potential impairment indicators and impairment
reversal indicators. In 2023 no impairment test was required as an assessment did not identify any indicators that the
carrying amount of the Jabiluka Undeveloped Property may not be recoverable in full from successful development or
sale or that a reversal of previous impairments was required. Key assumptions the fair value is most sensitive to
include:
•
Probability of future development (which includes an assessment of obtaining any required approval and/or
support of various stakeholders, including Traditional Owners, regulatory bodies and shareholders)
Foreign exchange rates
Production and capital costs
• Uranium oxide prices (including term contract price premiums in the future)
•
•
• Discount rate
• Ore reserves and mineral resources
•
Lease tenure renewal (August 2024)
• Development delays.
The recoverable amount is dependent on the development and life of the ore body together with the term and
continuity of the mining lease. Furthermore, the Jabiluka Mineral Lease is due for renewal in August 2024. ERA has
commenced discussions with stakeholders, including the GAC, concerning any application for renewal of the Lease.
The Jabiluka Mineral Lease makes provision for a further term not exceeding 10 years provided that ERA has
complied with all of its obligations under the Jabiluka Mineral Lease and the Mining Act 1980 (NT). There is a risk that
a renewal will not be granted. Even if the renewal is granted, a renewal of the Jabiluka Mineral Lease beyond the
further term of up to 10 years is not guaranteed, as any further renewals will require the Minister to exercise his or her
discretion. Whether such discretion would be exercised in favour of a further renewal of the Jabiluka Mineral Lease is
uncertain. If this further renewal was not to occur it is likely the Jabiluka Undeveloped Property would face full
impairment.
Further details can be found in Note 2(d).
The Jabiluka Mineral Lease is currently subject to a Long Term Care and Maintenance Agreement with Traditional
Owners. This agreement ensures the Jabiluka deposit will not be developed without the approval of the Mirarr
Traditional Owners. It is uncertain that this approval will be forthcoming and, by extension, that the Jabiluka deposit
will be developed. Should this approval not eventuate in the future, the Jabiluka Undeveloped Property would face full
impairment. An impairment of $90 million was recorded in 2018.
Energy Resources of Australia Ltd Annual Report 2023 91
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
12 Property, plant and equipment
MINE LAND
AND
BUILDINGS
$’000
PLANT AND
EQUIPMENT
$’000
MINE
PROPERTIES
$’000
REHAB-
ILITATION
$’000
RIGHT OF
USE
ASSETS
$’000
YEAR ENDED 31
DECEMBER 2023
Opening net book amount
Additions
Disposals
Depreciation/Amortisation
charge/write-offs
Additions immediately
impaired
Closing net book
amount
-
-
-
-
-
-
-
79
-
-
(79)
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
$’000
951
79
-
951
-
-
(292)
(292)
-
659
(79)
659
Cost
110,845
1,179,889
421,700
342,327
1,171
2,055,932
Accumulated depreciation/
Amortisation/impairment/
write-offs
Net book amount
YEAR ENDED 31
DECEMBER 2022
Opening net book amount
Additions
Disposals
Depreciation/Amortisation
charge/write-offs
Additions immediately
impaired
Closing net book
amount
(110,845)
(1,179,889)
(421,700)
(342,327)
(512)
(2,055,273)
-
-
-
-
-
-
-
-
-
227
-
-
(227)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
659
659
92
1,171
-
(312)
-
951
92
1,398
-
(312)
(227)
951
Cost
110,845
1,179,810
421,700
342,327
1,171
2,055,853
Accumulated depreciation/
Amortisation/impairment/
write-offs
(110,845)
(1,179,810)
(421,700)
(342,327)
(220)
(2,054,902)
Net book amount
-
-
-
-
951
951
Right of use assets
Right of use assets include building costs of $1,171,000.
Assets under construction
There were no property, plant and equipment assets used in the course of construction.
92 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
13 Government security receivable
NON-CURRENT
Government security receivable
2023
$’000
2022
$’000
509,005
486,187
ERA is required to maintain the Trust Fund with the Australian Government. The Trust Fund is intended to provide
security against the estimated costs of closing and rehabilitating the Ranger Project Area immediately. The Company
is required to prepare and submit an Annual Plan of Rehabilitation (Annual Plan) to the Australian Government. Once
accepted, the Annual Plan is independently assessed and costed and the amount to be provided by the Company
into the Trust Fund is then determined.
As at 31 December 2023, ERA had $509 million in cash currently held by the Australian Government in the Trust
Fund. Bank guarantees procured by ERA totalling $125 million are held by the government as additional security for
ERA's Ranger rehabilitation obligations (an additional $1 million is held as an allowance for Jabiluka rehabilitation).
These deposits and bank guarantees were provided to the government based on its review in February 2020 of the
44th Annual Plan of Rehabilitation submitted by ERA (i.e. prior to the reforecast of the cost of Ranger Project Area
rehabilitation), and subsequently reduced for an interim payment of $57 million for rehabilitation works completed
from 9 January 2021 to 30 June 2022.
ERA has agreed on amendments to the Ranger Government Agreement with the Australian Government to introduce
a clearer framework for managing the amount of security held by the government and releasing funds from the Trust
Fund for completed rehabilitation works. However, drawdown of funds under this framework will first require re-
evaluation of the security arrangement. Given the increase in the cost of rehabilitating the Ranger Project Area, ERA
may be required to provide additional security or funds in the Trust Fund.
ERA does not consider that it can rely upon drawdown of any further cash from the Trust Fund before the re-
evaluation of the security arrangement is complete.
Cash flows to/from the fund are considered to be advances to/from a third party and therefore disclosed under
Investing activities when they occur.
The applicable weighted average interest rate for the Trust Fund for the year ended 31 December 2023 was 4.67%
(31 December 2022: 1.53%).
14 Temporary bank overdraft
CURRENT
Rio Tinto Finance Ltd
Total temporary bank overdraft
Rio Tinto Finance Ltd bank account
2023
$’000
2022
$’000
-
-
12,253
12,253
Rio Tinto Finance Ltd (a related party) holds cash on behalf of the Company (RTF Account) to transact payments. In
the ordinary course of business during December 2022, funds were transferred from the RTF Account to ERA’s
operating bank account which brought the account into an overdrawn position. As soon as the Company became
aware of the situation in early January 2023, arrangements were made to ensure sufficient funds were transferred
from the Company’s bank account into the RTF Account returning the balance to a positive position. Additional
funding for rehabilitation is not available to ERA through this account facility.
Energy Resources of Australia Ltd Annual Report 2023 93
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
15 Trade and other payables
CURRENT
Trade payables
Amounts due to related parties
Other payables
Total trade and other payables
16 Provisions – current
CURRENT
Employee benefits
Rehabilitation
Total current provisions
Employee benefits provision
2023
$’000
2022
$’000
24,637
30,814
838
424
2,492
393
25,899
33,699
2023
$’000
2022
$’000
8,799
11,198
300,300
268,585
309,099
279,783
The employee benefits relate to annual leave and long service leave. Entitlements currently payable are classified
as current provisions and entitlements due in greater than 12 months are classified as non-current provisions.
The provision of benefits payable on termination was nil as at 31 December 2023 (2022: $1.0M). The provision
was reviewed at year end to ensure the provision reflects management’s best estimate of the benefits payable.
Management determined that the recognition requirements of the accounting standard had not been met as at 31
December 2023. Further details are in Note 2(e).
Movements in rehabilitation provision
Movements in the rehabilitation provision during the financial year are set out below:
2023
Carrying amount at the start of the year
Payments
Transfer from non-current provision
Carrying amount at the end of the year
2022
Carrying amount at the start of the year
Payments
Transfer from non-current provision
Carrying amount at the end of the year
94 Energy Resources of Australia Ltd Annual Report 2023
REHABILITATION
$’000
268,585
(210,615)
242,330
300,300
REHABILITATION
$’000
222,898
(194,190)
239,877
268,585
NOTES TO THE FINANCIAL STATEMENTS
17 Provisions – non-current
NON-CURRENT
Employee benefits (Note 16)
Rehabilitation
Carrying amount at the end of the year
Movements in rehabilitation provision
2023
$’000
2022
$’000
772
653
2,119,650
956,075
2,120,422
956,728
As the Ranger Cash Generating Unit was fully impaired in 2016 and uranium production ceased in January 2021,
changes in rehabilitation estimates are allocated directly to the statement of comprehensive income. Movements
in the rehabilitation provision during the financial year are set out below:
2023
Carrying amount at the start of the year
Change in estimate
Change in discount rate
Unwinding of discount
Transfer to current provision
Carrying amount at the end of the year
2022
Carrying amount at the start of the year
Change in estimate
Unwinding of discount
Transfer to current provision
Carrying amount at the end of the year
REHABILITATION
$’000
956,075
1,362,540
(13,268)
56,633
(242,330)
2,119,650
REHABILITATION
$’000
1,027,971
62,157
105,824
(239,877)
956,075
Energy Resources of Australia Ltd Annual Report 2023 95
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
18 Deferred tax liability
(A) DEFERRED TAX LIABILITY
The balance comprises temporary differences attributable to:
Amounts recognised in profit and loss
Government security receivable
Inventories
Receivables
Total deferred tax liabilities
2023
$’000
2022
$’000
5,988
2,092
295
8,375
5,988
2,315
330
8,633
Set-off of deferred tax asset pursuant to set-off provisions (Note 18B)
(8,375)
(8,633)
Net deferred tax liabilities
-
-
Movements
Opening balance at 1 January
(Credited)/debited to the income statement (Note 5)
Closing balance at 31 December
(B) DEFERRED TAX ASSETS
The balance comprises temporary differences attributable to:
Amounts recognised in profit and loss
Rehabilitation provision
Employee provisions
Other
Total deferred tax assets
8,633
(258)
8,375
25,224
(16,591)
8,633
4,018
3,117
1,240
8,375
4,471
3,558
604
8,633
Set-off of deferred tax liabilities pursuant to set-off provisions (Note 18A)
(8,375)
(8,633)
Net deferred tax assets
-
-
Movements
Opening balance at 1 January
Credited/(debited) to the income statement (Note 5)
Closing balance at 31 December
8,633
(258)
8,375
25,224
(16,591)
8,633
96 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
19 Share capital
SHARE CAPITAL
A Class shares fully paid
Total contributed equity
2023
SHARES
2022
SHARES
2023
$’000
2022
$’000
22,148,299,188
3,691,383,198
1,542,350
1,177,656
1,542,350
1,177,656
Movements
A Class shares fully paid
Share capital at the start of the year
Shares issued during the year (at $0.02 per share)
Share capital at the end of the financial year
Total contributed equity
Contributed equity at the start of the year
Additional contributions of equity ($0.02 per share of 18,456,915,990 shares)
Share issuance costs
Contributed equity at the end of the year
2023
’000
2022
’000
3,691,383
3,691,383
18,456,916
-
22,148,299
3,691,383
1,177,656
1,177,656
369,138
(4,444)
-
-
1,542,350
1,177,656
As previously announced in May 2023, ERA’s 5-for-1 non-underwritten pro rata renounceable entitlement offer of
new fully paid ERA ordinary shares (Interim Entitlement Offer) closed successfully on 10 May 2023.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of shares held.
On a show of hands every holder of ordinary shares present at a shareholders’ meeting in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
Capital risk management
Details of the Company’s exposure to risks when managing capital are set out in Note 28.
Energy Resources of Australia Ltd Annual Report 2023 97
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NOTES TO THE FINANCIAL STATEMENTS
20 Reserves and retained profits
RESERVES
Share-based payments reserve
Capital reconstruction
Cashflow hedge reserve
Total reserves
Movements
Share-based payments reserve
Balance 1 January
Share-based payments expense / (reversal)
Balance 31 December
Capital reconstruction
Balance 1 January
Movements
Balance 31 December
ACCUMULATED LOSSES
Movements in accumulated losses were as follows:
Opening accumulated losses – 1 January
Net loss for the year
Closing accumulated losses – 31 December
Nature and purpose of reserves
Share based payments reserve
2023
$’000
2022
$’000
(1,831)
389,500
-
(1,588)
389,500
-
387,669
387,912
(1,588)
(243)
(1,831)
(906)
(682)
(1,588)
389,500
389,500
-
-
389,500
389,500
(2,169,225)
(2,008,672)
(1,388,094)
(160,553)
(3,557,319)
(2,169,225)
Share based payments reserve is used to recognise the fair value of equity instruments issued to employees but
not exercised.
Capital reconstruction reserve
In June 1995, the Company reduced its share capital by cancelling $0.95 of the capital paid up on each issued
share and reducing the par value of each issued share from $1.00 to $0.05. The cancelled capital (comprising
$389,500,000 in total) was credited to a capital reconstruction reserve. The Company can distribute capital to
shareholders from this reserve.
98 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
21 Contingencies
Contingent liabilities
Potentially material legal actions against the Company:
The remaining argument in the Company’s Federal Court action against the former Commonwealth Minister for
Resources, claiming that due process was not followed in granting approvals for the Jabiluka Mill Alternative is
dormant. If the Company proceeds with the Jabiluka Mill Alternative, notice will be given to the applicant who may
or may not wish to pursue the argument further.
No material losses are anticipated for the contingent liability disclosed above.
22 Commitments
Capital commitments
The company has no capital commitments.
Lease commitments recognised in the balance sheet
Lease liabilities recognised in the balance sheet are classified as a current liability when payable within one year and
a non-current liability when payable in greater than one year. No leases have payments due in greater than three
years.
Mineral tenement leases
Future mineral tenement lease payments not provided for in the financial statements and payable:
Within one year
Later than one year but not later than five years
Later than five years
Total mineral tenement leases
2023
$’000
1,322
1,378
-
2022
$’000
1,314
2,688
-
2,700
4,002
To maintain current rights of tenure to mining tenements, the Company will be required to outlay an amount of $1.3
million in the year ending 31 December 2024 for tenement lease rentals. This includes payments for the Ranger
Project Area and Jabiluka Lease.
The Company is liable to make payments to the Commonwealth as listed below:
(i) An annual amount equal to the sum payable by the Commonwealth to the Northern Land Council pursuant to
the Section 44 Agreement for rent for the duration of the agreement. This amounted to $1,215,157 for 2024
and is indexed for future years.
(ii) Amounts equal to the sums payable by the Commonwealth to the Aboriginal Benefits Reserve pursuant to a
determination under the Aboriginal Land Rights (Northern Territory) Act 1976 (section 63(5) (b)). The
Company was required to pay 2.5% of Ranger net sales revenue to the Commonwealth and 1.75% of
Ranger net sales revenue to the Northern Land Council, or an entity representing the Mirarr Traditional
Owners as directed by the Northern Land Council (amounts paid during 2023: nil; 2022: $1,496,207). All
Ranger sales were completed in 2022 and as such no future Ranger Royalties are payable.
(iii) Amounts equal to sums payable by the Commonwealth to the Northern Territory pursuant to an
understanding for financial arrangements between the Commonwealth and the Northern Territory
Government. These amounts are also calculated as royalties and the relevant rate is 1.25% of Ranger net
sales revenue (amounts paid during 2023: nil; 2022: $440,061). All Ranger sales were completed in 2022
and as such no future Ranger Royalties are payable.
Energy Resources of Australia Ltd Annual Report 2023 99
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
The Company is liable to make payments to the Northern Land Council pursuant to the Section 43 Agreement
between Pancontinental Mining Limited and Getty Oil Development Company Limited and the Northern Land Council
dated 21 July 1982, which was assigned to the Company with the consent of the Northern Land Council, as listed
below:
(i) Up-front payment of $3,400,000 on the commencement of production at Jabiluka.
(ii) Annual royalty payments calculated at 4.5% of net sales revenue, less $500,000 less any amounts paid to
the Aboriginal Benefits Reserve by the Commonwealth under the conditions specified in the Jabiluka Mineral
Lease for the first 10 years and thereafter at 5% of net sales revenue, less any amounts paid to the
Aboriginal Benefits Reserve by the Commonwealth under the conditions specified in the mineral lease (refer
commitment below).
The Company is liable to make payments to the Commonwealth for the Jabiluka project pursuant to the conditions
attached to the mineral lease. The amount payable was, until 30 June 1990, calculated at the rate of 5.25% of net
sales revenue from the Jabiluka project. The Jabiluka project is now under long term care and maintenance and will
not be developed without the approval of the Mirarr Traditional Owners.
23 Auditor’s remuneration
During the year the auditor of the Company earned the following remuneration:
KPMG Australian firm
Audit and review of financial reports
Audit and review of financial reports (additional prior year fees)
Other non-audit related services
Total auditor’s remuneration paid
24 Related parties
Directors
2023
$’000
2022
$’000
374
-
-
374
295
24
-
319
The names of persons who were Directors of the Company at any time during the financial year are as follows:
Richard (Rick) Dennis, Brad Welsh, Hon. Ken Wyatt AM, Justin Carey, Rosemary Fagen, and Jacques van
Tonder.
Information relating to Directors’ compensation, shareholdings and retirement benefits is set out in the
Remuneration Report in the Directors’ Report.
Key management personnel
Key management personnel and Directors’ compensation
Short term employee benefits
Termination payments
Post employment benefits
Share-based payments / other long-term incentives
2023
$’000
2,868
-
226
347
3,442
2022
$’000
3,131
1,909
322
382
5,744
In compliance with Corporations Regulations 2001 2M.3.03 the Company has provided detailed remuneration
disclosures in the Directors’ Report. The relevant information can be found in the Remuneration Report on pages
47 to 61.
100 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Loans with Directors and key management personnel
There were no loans with Directors or key management personnel during 2023 (2022: nil).
Transactions with Directors and Director-related entities
There were no transactions with Directors or Director-related entities other than Rio Tinto Limited during 2023 (2022:
nil). Details of transactions with Rio Tinto Group Companies are outlined below.
Ultimate parent entity
The ultimate parent entity is Rio Tinto Limited. This interest is held through North Limited (incorporated in Victoria,
Australia) which has beneficial ownership of 86.3% of the issued ordinary shares of the Company. North Limited
owns 52.0% directly and the remaining 34.3% through its subsidiary, Peko-Wallsend Pty Ltd.
Interest income
Interest income is received from Rio Tinto Finance Ltd. which holds cash on behalf of the Company.
Transactions with related parties
The following transactions occurred with related parties.
Management services fees paid to ultimate parent entity:
Rio Tinto Group Companies
Consulting fees paid to:
Rio Tinto Group Companies
Other reimbursements paid for commercial services received:
Rio Tinto Group Companies
Amounts paid to related parties:
Rio Tinto Finance Ltd – loan repayment (revised credit facility)
Rio Tinto Finance Ltd – interest bearing deposit
Amounts received from related parties:
Rio Tinto Group Companies – sales
Rio Tinto Group Companies – interest
Rio Tinto Group Companies – employee transfers and minor receipts
Rio Tinto Finance Ltd – loan proceeds (revised credit facility)
Dividends paid to:
Related parties – North Ltd
Related parties – Peko-Wallsend Pty Ltd
2023
$’000
2022
$’000
-
-
(720)
(1,292)
(4,008)
(5,074)
(100,000)
(100,000)
-
35
609
100,000
-
-
-
-
35,555
666
1,190
-
-
-
Amounts paid to related parties included repayment of $100 million to Rio Tinto Finance Ltd (RTF) in relation to the
Revised Credit Facility. The $100 million was received by ERA in March 2023 from RTF under the Revised Credit
Facility. The second $100 million payment relates to the principal loan amount borrowed by RTF in accordance with
the Group Corporate Treasury Loan Agreement between RTF and ERA executed in 2021.
Amounts received from related parties included sales of uranium oxide at market price in 2022. The Company was
party to a marketing agreement with Rio Tinto Uranium as it represented superior value to the Company compared
with alternative marketing agreements considered. Under the marketing agreement, uranium oxide produced by the
Company was sold to Rio Tinto Uranium, a related party of Rio Tinto plc. All Ranger sales were completed in 2022.
Energy Resources of Australia Ltd Annual Report 2023 101
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NOTES TO THE FINANCIAL STATEMENTS
Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Aggregate amounts received from and payable to each class of other related
parties at balance date were as follows:
Current assets – cash assets
Related parties – Rio Tinto Finance Ltd
Current assets – receivables
Related parties – Rio Tinto Group Companies
Related parties – Rio Tinto Finance Ltd
Current liabilities – temporary bank overdraft
Related parties – Rio Tinto Finance Ltd
Current liabilities – creditors
Related parties – Rio Tinto Group Companies
2023
$’000
2022
$’000
101,433
20
727
-
2
-
-
12,253
838
2,492
All related party transactions were conducted on arm’s length terms and conditions and at market rates.
25 Segment information
Description of segments
Management determined the operating segment based on the reports reviewed by the Chief Executive required
for strategic decisions.
The Chief Executive considers the business from a product perspective and has identified only one reportable
segment in the year ended 31 December 2023, the selling of uranium and site rehabilitation. There are no other
unallocated operations.
Primary reporting – business segments
The segment information provided to the Chief Executive for the reportable segment is as follows:
URANIUM
2023
$’000
-
34,182
34,182
2022
$’000
35,555
19,754
55,309
(1,388,094)
(160,553)
-
-
(1,388,094)
(160,553)
828,800
828,800
679,771
679,771
2,456,100
1,283,428
2,456,100
1,283,428
79
292
1,398
312
Revenue from external customers
Other revenue
Total segment revenue
Segment result
Income tax benefit
Loss for the year
Segment assets
Total assets
Segment liabilities
Total liabilities
Acquisitions of non-current assets
Depreciation and amortisation expenses
102 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Other segment information
Segment revenue
The revenue from external parties reported to the Chief Executive is measured in a manner consistent with that in the
statement of comprehensive income.
Revenues from external customers were derived from the sale of uranium. A breakdown of revenue and results is
provided in the tables below. Segment revenue reconciles to total revenue from continuing operations as disclosed in
Note 3.
The Company is domiciled in Australia. The result of its revenue from external customers in other countries is
outlined in the table below:
Asia
Total revenue
SEGMENT REVENUES
FROM SALES TO
EXTERNAL CUSTOMERS
2023
$’000
-
-
2022
$’000
35,555
35,555
Segment revenues are allocated based on the country where the customer is located. During 2017 the Company
entered into a revised marketing agreement with Rio Tinto Uranium based in Asia. All uranium sales were to this
customer. Details are disclosed in Note 24. All Ranger sales were completed in 2022.
Segment assets
The amounts provided to the Chief Executive with respect to total assets are measured in a manner consistent with
that of the financial statements. These assets are allocated based on the operations of the segment and the physical
location of the asset. Segment assets include all assets used by a segment and consist primarily of operating cash,
receivables, inventories, property, plant and equipment and other assets, net of provisions.
All assets of the Company as at 31 December 2023 are in Australia. As at 31 December 2022, all assets were in
Australia. All acquisitions of property, plant and equipment and other non-current assets occurred in Australia.
Segment liabilities
The amounts provided to the Chief Executive with respect to total liabilities are measured in a manner consistent
with that of the financial statements. These liabilities are allocated based on the operations of the segment.
Segment liabilities consist primarily of temporary bank overdraft, trade and other creditors, employee entitlements
and provisions. The Company does not have any borrowings as at 31 December 2023.
Energy Resources of Australia Ltd Annual Report 2023 103
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NOTES TO THE FINANCIAL STATEMENTS
26 Reconciliation of loss after income tax to net cash (outflow)/inflow from
operating activities
Loss for the year
Add/(less) items classified as investing/financing activities:
Net (gain)/loss on sale or write-off of non-current assets
Net (gain)/loss on non-hedge financial assets
Add/(less) non-cash items:
Depreciation and amortisation
Rehabilitation provision: unwinding of discount
Change in closure estimate
Employee benefits: share based payments
Interest on government security receivable
Recovery of deferred tax assets on hedge
Net exchange differences
Change in operating assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
(Increase)/decrease in other assets
(Decrease)/increase in payables
(Decrease)/increase in other provisions
Payments for rehabilitation
Net cash (outflow)/inflow provided from operating activities
27 Earnings per share
Basic loss per share
Diluted loss per share
2023
$’000
2022
$’000
(1,388,094)
(160,553)
(1,268)
-
(2,498)
3,451
292
312
56,633
105,824
1,349,272
103
62,157
327
(22,819)
(8,123)
-
(2)
449
744
2,139
(7,800)
(2,280)
-
13
28,697
21,554
(2,095)
(3,104)
1,265
(210,615)
(194,190)
(223,246)
(146,963)
2023
CENTS
(8.6)
(8.6)
2022
CENTS
(4.3)
(4.3)
Loss used in the calculation of basic and diluted earnings per share: 2023: $1,388,093,919 (2022: $160,553,033).
Weighted average number of ordinary shares on issue used in calculation of basic earnings per share: 2023:
22,148,299,188 shares (2022: 3,691,383,198).
28 Financial risk management
The Company carries out risk management under policies approved by the Board of Directors. The Board provides
principles for overall risk management, as well as written policies covering specific areas such as mitigating interest
rate and other risks, and use of derivative and non-derivative financial instruments.
The Company operates entirely in Australia and is exposed primarily to Australian dollar denominated costs. Sales
are primarily denominated in US dollars.
Market risk
The Company markets its products internationally and is exposed to foreign exchange risk arising from various
currency exposures, primarily with the US Dollar. Foreign exchange risk arises from future commercial transactions
and recognised assets and liabilities that are denominated in a currency that is not the entity’s functional currency.
The risk is measured using sensitivity analysis and cash flow forecasting.
104 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
The Company’s exposure to foreign currency risk at the reporting date was as follows:
Trade receivables
Trade payables
Group sensitivity
2023
USD
$'000
-
(493)
2022
USD
$'000
-
(549)
At 31 December 2023 ERA had no trade receivables sensitive to foreign currency movements, therefore there would
be nil impact on the pre-tax profit for the year had the Australian Dollar weakened/strengthened by 10% against the
US Dollar with all other variables held constant (2022: $nil higher/lower).
At 31 December 2023, had the Australian Dollar weakened/strengthened by 10% against the US Dollar with all other
variables held constant, the change in trade payables would have affected pre-tax profit for the year by $74,221
higher/lower (2022: $79,043 higher/lower).
Interest rate risk
The Company’s main interest rate risk arises from cash on deposit. When cash is surplus to operational and investing
requirements it is invested in lump sum deposits to maximise interest received. In addition, the Company is exposed
to interest rate risk on cash in the government security receivable. The applicable weighted average interest rate for
the government security receivable for the year ended 31 December 2023 was 4.67% (31 December 2022: 1.53%).
Credit risk
The Company has policies in place to ensure that sales of products are made to customers with an appropriate
credit history. Where customers are rated by an independent credit rating agency, these ratings are used to set
credit limits. If no independent rating exists, the credit quality of the customer is subject to extensive assessment.
Letters of credit and other forms of credit insurance are also used as required. Cash transactions and cash
invested through the government security receivable are limited to high credit quality financial institutions. The
Company has policies that limit the amount of credit exposure to any one financial institution.
TRADE RECEIVABLES
AA
A
BBB
Other
Liquidity and capital risk
2023
$'000
2022
$'000
-
20
-
-
-
2
-
-
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern, to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
structure to reduce the cost of capital.
The future liquidity and capital requirements of ERA will depend on many factors. Primarily due to a number of
rehabilitation provision increases since 2021, ERA currently has insufficient funds to fully fund rehabilitation. As
previously announced in May 2023, ERA completed a 5-for-1 non-underwritten pro rata renounceable entitlement
offer of new fully paid ERA ordinary shares (Interim Entitlement Offer). The Interim Entitlement Offer, which was fully
subscribed (inclusive of the applications under the Shortfall Facility), has provided approximately $369 million (before
costs). The new shares issued rank equally with the existing ERA shares on issue, and Rio Tinto’s voting power and
relevant interest remained unchanged at 86.33%.
A portion of the proceeds from the Interim Entitlement Offer were used to repay the Rio Tinto Revised Credit Facility
of $100 million and fund costs of the Interim Entitlement Offer of approximately $4.4 million. The remaining proceeds
are expected to provide ERA with sufficient capital to fund its planned Ranger Project Area rehabilitation expenditure
through to quarter 3, 2024.
ERA will use existing cash at bank and net interest received to fund its planned Ranger Project Area rehabilitation
expenditure through to quarter 3, 2024, fund corporate costs, working capital, funding costs, and other costs including
the possible renewal of the Jabiluka Mineral Lease and activities to uphold obligations under the Jabiluka Long Term
Care and Maintenance Agreement.
Energy Resources of Australia Ltd Annual Report 2023 105
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NOTES TO THE FINANCIAL STATEMENTS
The Interim Entitlement Offer was an interim funding solution for the Company, with further interim funding
requirements expected in the second half of 2024 for the first tranche of the estimated Ranger Project Area
rehabilitation expenditure. This is expected to incorporate the rehabilitation requirements addressed in the 2022
Feasibility Study (revised programme management approach). ERA will engage with Rio Tinto and other
shareholders about a material equity raise in 2024. An inability to obtain sufficient funding would have a material
impact on ERA’s business, financial performance and assessment as a going concern. Rio Tinto has reiterated its
commitment to ensuring the rehabilitation of the Ranger Project Area is successfully achieved to a standard that will
establish an environment similar to the adjacent Kakadu National Park.
As at 31 December 2023, ERA had no debt financing in place and $726 million in total cash resources (comprising
$217 million in cash at bank or cash equivalents and $509 million invested as part of the government security
receivable).
29 Events occurring after the reporting period
No other matters or circumstances have arisen since the end of the financial year that have significantly affected
or may significantly affect the operations or state of affairs of the Company in subsequent financial years.
106 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
30 Share-based payments
ERA participates in share-based payment plans administered by Rio Tinto Limited, which are described in detail
in the Remuneration Report. These plans have been accounted for in accordance with the fair value recognition
provisions of AASB 2, ‘Share-based Payment’.
Rio Tinto Performance Share Awards
The Rio Tinto Performance Share Award (PSA) details are described in the Remuneration Report. Performance
Share Awards (PSA) provide a conditional right to Rio Tinto shares to eligible senior management personnel
within the Rio Tinto Group, including the Chief Executive and senior executives of ERA. Award levels under the
EIP are at the discretion of Rio Tinto and the ERA Remuneration Committee. The awards are accounted for in
accordance with the requirements applying to equity-settled share-based payments transactions. The fair value of
each award on the day of grant is set equal to the share price on the day of grant. No forfeitures are assumed. A
summary of the status of shares granted under the share plan at 31 December 2023, and changes during the
year, is presented below:
2023
Rio Tinto Limited
Weighted average fair value at
grant date
2022
Rio Tinto Limited
Weighted average fair value at
grant date
BALANCE
AT START
OF THE
YEAR
213
$93.17
213
$93.17
GRANTED
DURING
THE YEAR
TRANS-
FERS
IN/(OUT)
EXERCISED
DURING
THE YEAR
FORFEITED
DURING
THE YEAR
BALANCE
AT END OF
THE YEAR
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
213
$93.17
213
$93.17
The weighted average share price at the date of exercise of conditional grants of shares exercised during the
year ended 31 December 2023 was nil (2022: nil).
The weighted average remaining contractual life of conditional grants of shares outstanding at the end of the
period was one year (2022: two years).
Where shares are issued to employees of subsidiaries within the Rio Tinto Group, the subsidiaries compensate
the parent for the amount recognised as an expense in relation to these shares.
Energy Resources of Australia Ltd Annual Report 2023 107
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
NOTES TO THE FINANCIAL STATEMENTS
myShare savings plan
The myShare plan was introduced to all eligible staff members in 2013 and is described in the Remuneration Report.
Awards under this plan are settled in equity and accounted for accordingly. The fair value of each award on the day
of grant is set equal to the share price on the day of grant.
A summary of the status of conditional shares granted under the plan at 31 December 2023, and changes during the
year, is presented below:
BALANCE
AT START
OF THE
YEAR
GRANTED
DURING
THE YEAR
TRANSFERS
IN/(OUT)
VESTED
DURING
THE YEAR
FORFEITED
DURING
THE YEAR
BALANCE
AT END OF
THE YEAR
2023
Rio Tinto Limited
6,439
3,389
298
(3,365)
(77)
6,684
Weighted average exercise price
$105.91
$103.63
$116.48
$103.00
$116.48
$112.50
2022
Rio Tinto Limited
6,536
3,787
(610)
Weighted average exercise price
$103.34
$102.67
$101.99
(2,559)
$95.16
(715)
6,439
$107.07
$105.91
The weighted average share price at the date of exercise of conditional grants of shares exercised regularly during
the year ended 31 December 2023 was $112.50 (2022: $105.96).
The weighted average remaining contractual life of share options outstanding at the end of the period was two years
(2022: two years).
Where shares are issued to employees of subsidiaries within the Rio Tinto Group, the subsidiaries compensate the
parent for the amount recognised as an expense in relation to these shares.
Rio Tinto Management Share Awards
The Rio Tinto Management Share Award (MSA) details are described in the Remuneration Report. Management
Share Awards (MSA) are conditional grants of Rio Tinto shares to eligible employees of the company which will vest,
wholly or partly, upon expiry of a three-year vesting period. Award levels under the EIP are at the discretion of Rio
Tinto. The awards will be settled in equity, including the dividends accumulated from date of award to vesting. The
awards are accounted for in accordance with the requirements applying to equity-settled share-based payment
transactions. The fair value of each award on the day of grant is set equal to the share price on the day of grant. No
forfeitures are assumed. A summary of the status of shares granted under the MSA plan at 31 December 2023, and
changes during the year, is presented below:
BALANCE
AT START
OF THE
YEAR
GRANTED
DURING
THE YEAR
TRANSFERS
IN/(OUT)
EXERCISED
DURING
THE YEAR
FORFEITED
DURING
THE YEAR
BALANCE
AT END OF
THE YEAR
2023
Rio Tinto Limited
5,507
2,574
Weighted average fair value at
grant date
$105.19
$111.04
2022
Rio Tinto Limited
11,088
4,550
Weighted average fair value at
grant date
$94.97
$112.42
-
-
-
-
(1,777)
$77.65
-
-
6,304
$113.39
(7,795)
(2,336)
5,507
$92.98
$111.50
$105.19
The weighted average share price at the date of exercise of conditional grants of shares exercised regularly during
the year ended 31 December 2023 was $120.52 (2022: $113.04).
The weighted average remaining contractual life of conditional grants of shares outstanding at the end of the period
was two years (2022: two years).
Where shares are issued to employees of subsidiaries within the Rio Tinto Group, the subsidiaries compensate the
parent for the amount recognised as an expense in relation to these shares.
108 Energy Resources of Australia Ltd Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period as part of employee
benefit expense were as follows:
Share based payment expense
2023
$'000
103
2022
$'000
327
Energy Resources of Australia Ltd Annual Report 2023 109
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
DIRECTORS’ DECLARATION
In the Directors’ opinion:
a. The financial statements and notes set out on pages 72 to 109 are in accordance with the Corporations Act 2001
(Cth), including:
i.
ii.
Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
Giving a true and fair view of the Company’s financial position as at 31 December 2023 and of its
performance for the financial year ended on that date; and
b. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
c. The Directors draw attention to Note 1 to the financial statements, which includes a statement of compliance with
International Financial Reporting Standards.
The Directors have been given the declarations by the Chief Executive and the Chief Financial Officer required by
section 295A of the Corporations Act 2001 (Cth). This declaration is made in accordance with a resolution of the
Directors.
R Dennis
Brisbane
12 March 2024
110 Energy Resources of Australia Ltd Annual Report 2023
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMGInternational Limited, a private English company limited by guarantee. All rightsreserved. The KPMG name and logo are trademarks used under license bythe independent memberfirms of the KPMG global organisation. Liability limitedby a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Energy Resources ofAustralia LtdReport on the audit of the Financial Report Opinion We have audited the FinancialReport of Energy Resources of Australia Ltd(the Company).In our opinion, the accompanying Financial Reportof the Company is in accordance with the Corporations Act 2001, including: • Giving atrue and fair view of theCompany’sfinancial position as at31 December2023 and ofitsfinancial performance for the year ended on that date; and • Complying with AustralianAccounting Standardsand the Corporations Regulations2001. The FinancialReport comprises: • Balance Sheet as at31 December 2023; • Statement of comprehensive income, statement of changes in equityand cashflow statement for the year then ended; • Notes, including material accounting policies; • Directors’ Declaration. Basis foropinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilitiesunder those standardsare furtherdescribed in the Auditor’sresponsibilitiesforthe audit of the Financial Report section ofour report. We are independent of theCompany in accordance with the Corporations Act 2001and the ethical requirementsof the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants(including Independence Standards) (the Code) that are relevant to our audit of the Financial Reportin Australia. We have fulfilled our otherethical responsibilities in accordance with these requirements. INDEPENDENT AUDITOR’S REPORT
Energy Resources of Australia Ltd Annual Report 2023 111
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Energy Resources of Australia Ltd Report on the audit of the Financial Report Opinion We have audited the Financial Report of Energy Resources of Australia Ltd (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • Giving a true and fair view of the Company’s financial position as at 31 December 2023 and of its financial performance for the year ended on that date; and • Complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Balance Sheet as at 31 December 2023; • Statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended; • Notes, including material accounting policies; • Directors’ Declaration. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
INDEPENDENT AUDITOR’S REPORT
112 Energy Resources of Australia Ltd Annual Report 2023
Material uncertainty related to going concern We draw attention to Note 1(a)(i), “Going Concern” in the financial report. The conditions disclosed in Note 1(a)(i) indicate a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter. In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty regarding events or conditions casting significant doubt in the Company’s assessment of going concern. Our approach to this involved: • Evaluating the feasibility, quantum and timing of the Company’s plans to obtain additional funding from its major shareholder to address going concern; • Assessing the Company’s cash flow forecasts for incorporation of the Company’s operations and plans to address going concern, in particular forecast rehabilitation expenditure; and • Determining the completeness of the Company’s going concern disclosures for the principle matters casting significant doubt on the Company’s ability to continue as a going concern, the Company’s plans to address these matters, and the material uncertainty. Key Audit Matters Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the Key Audit Matter. Rehabilitation provision ($2,419.9 million) Refer to Note 16 and 17 of the Financial Report The key audit matter How the matter was addressed in our audit The rehabilitation provision is a key audit matter due to: • The size of the provision; • Inherent complexity in the Company estimating future environmental restoration and rehabilitation costs; and • The significant judgement applied by the Company to determine the provision. Our procedures included: • Assessing the appropriateness of the Company’s accounting policy for the recognition and measurement of the rehabilitation provision with the requirements of the accounting standards; • Working with our sustainability closure specialists to: − Understand and identify new significant risks related to rehabilitation activities;
INDEPENDENT AUDITOR’S REPORT
Energy Resources of Australia Ltd Annual Report 2023 113
We focused on the significant and judgmental assumptions the Company applied in their rehabilitation provision including: • Nature and extent of rehabilitation activities required. This impacts the completeness of the rehabilitation provision estimate; • Forecasted closure costs and timing for key rehabilitation activities; and • Economic assumptions, such as the discount rate The Company utilises both internal and external experts to assist in the determination of the rehabilitation provision. As a result of the above significant and judgmental assumptions, this area required significant audit effort. We involved sustainability closure specialists and valuation specialists to supplement our senior audit team members in assessing this key audit matter. − Evaluate the updates in methodology applied by the Company and Company’s external expert in determining the nature and extent of rehabilitation activities by comparison to industry practice; and − Assess certain assumptions regarding the forecast closure costs of closure activities based on their experience and familiarity with applicable legislative requirements and industry practice and the Company’s closure commitments. • Assessing the competence, scope and objectivity of the Company’s internal and external experts used in the determination of the rehabilitation provision; • Inspecting the most recent closure studies and other technical material prepared by the Company relating to changes in the closure provision to assess the nature and scope of work planned to be undertaken. This included assumptions relating to the nature and timing of closure and rehabilitation activities; • Testing key controls in relation to the rehabilitation provision; • On a sample basis, testing the basis of forecasted closure cost by obtaining an understanding of the nature of the estimate and inspecting underlying documentation for forecast rehabilitation activities; • Obtaining the Company’s latest external expert report as well as internal and external underlying documentation to compare to the nature and quantum of costs contained in the Company’s rehabilitation provision; • Testing the accuracy of the historical rehabilitation provision by comparing to actual expenditure incurred. We used this to challenge the Company’s current cost estimations; • Working with our valuation specialists to compare the discount rate used by the Company to external data such as yields on long-term government bonds; • Testing mathematical accuracy of the Company’s rehabilitation provision calculation; and • Assessing the rehabilitation provision disclosures in the financial report including disclosure of risks and uncertainties using our understanding obtained from our testing against the requirements of the accounting standard. This included checking the current and non-current rehabilitation provision disclosure for consistency to the planned timing of the rehabilitation expenditure. About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
INDEPENDENT AUDITOR’S REPORT
114 Energy Resources of Australia Ltd Annual Report 2023
Other Information Other Information is financial and non-financial information in Energy Resources of Australia Ltd’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • Preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • Implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • Assessing the Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • To obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • To issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf. This description forms part of our Auditor’s Report.
INDEPENDENT AUDITOR’S REPORT
Energy Resources of Australia Ltd Annual Report 2023 115
Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Energy Resources of Australia Ltd for the year ended 31 December 2023 complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 47 to 61of the Directors’ report for the year ended 31 December 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Derek Meates Partner Perth 12 March 2024 About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
SHAREHOLDER INFORMATION (unaudited)
Energy Resources of Australia Ltd is a for-profit company limited by shares, incorporated and domiciled in Australia.
The financial statements were authorised by Directors on 12 March 2024. The Directors have the power to amend
and reissue the financial statements.
The shareholder information set out below was applicable as at 28 February 2024.
Distribution of equity securities
Analysis of numbers of registered equity security holders by size of holding:
ORDINARY SHARES
NUMBER OF
SHARE-
HOLDERS
% OF
SHARE-
HOLDERS
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
4,726
2,088
759
1,378
397
9,348
50.56%
22.34%
8.12%
14.74%
4.24%
NUMBER
OF SHARES
1,350,207
5,406,630
5,830,709
45,620,862
% OF
ISSUED
SHARES
0.01%
0.02%
0.03%
0.21%
22,090,090,780
99.73%
100.00%
22,148,299,188
100.00%
There were 7,590 holders of less than a marketable parcel of ordinary shares.
Substantial shareholders
Substantial shareholders as disclosed in substantial shareholder notices provided to the Company:
North Limited1
Peko-Wallsend Ltd1
Packer & Co Limited ATF Packer & Co Investigator Trust2
NUMBER
OF SHARES
11,525,117,784
7,594,978,020
2,063,128,284
% OF
ISSUED
SHARES
52.04%
34.29%
9.32%
Note 1 As lodged 27 February 2020; Shareholding increased following participation in Entitlement Offer on 12 May 2023, however % of issued shares remain
unchanged.
Note 2 As lodged 16 May 2023.
116 Energy Resources of Australia Ltd Annual Report 2023
SHAREHOLDER INFORMATION (unaudited)
Equity security holders
The names of the 20 largest registered holders of quoted equity securities are listed below:
North Limited
Peko Wallsend Ltd
BNP Paribas Noms Pty Ltd
HSBC Custody Nominees (Australia) Limited
Citicorp Nominees Pty Limited
Creative Living (Qld) Pty Ltd
BNP Paribas Nominees Pty Ltd ACF Clearstream
Curious Commodities Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Li Wan
Mr Samuel Lin
Vigor Door Corporation Pty Ltd
Airport Finance Pty Ltd
Mrs Faye Lesley Duffield
Mr John Hristoforidis and Mrs Adriana Hristoforidis
Hotspur Super Pty Ltd
Mr Sui-Ming Wang and Mrs Cui Ping Zeng
BNP Paribas Noms Pty Ltd
Mrs Tew Hua Cameron
Mr William Ewart Granter
NUMBER
OF SHARES
11,525,117,784
7,594,978,020
2,276,561,899
462,015,313
11,022,655
9,000,000
8,117,959
7,423,341
6,808,644
6,505,590
5,400,000
4,708,855
4,013,074
3,898,306
3,600,000
3,550,000
3,540,000
3,305,857
2,802,000
2,600,000
% OF
ISSUED
SHARES
52.04%
34.29%
10.28%
2.09%
0.05%
0.04%
0.04%
0.03%
0.03%
0.03%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.01%
0.01%
0.01%
Energy Resources of Australia Ltd Annual Report 2023 117
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
SHAREHOLDER INFORMATION (unaudited)
Entitlements to vote
Information on shareholding
2023 ASX Announcements (unaudited)
Shareholders who require information about their
shareholding or dividend payment should contact
ERA’s principal registry.
Shareholders who have changed their address should
advise the change in writing to:
ERA Share Registry
Computershare Investor Services Pty Limited
Level 1, 200 Mary Street
Brisbane QLD 4000
Telephone:
1300 552 270 (within Australia)
+61 3 9415 4000 (outside Australia)
Online:
www.investorcentre.com/contact
Sponsored shareholders should note, however, that
they should contact their sponsored broker to notify of
a change of address.
Subject to any rights or restrictions for the time being
attached to any shares on a show of hands, every
member present in person or by proxy or by attorney
or by representative and entitled to vote at a
shareholders’ meeting shall have one vote.
On a poll, every member present in person or by
proxy or by attorney or by representative shall have
one vote for each share held by him/her.
All substantive resolutions at a meeting of security
holders are decided by a poll.
Annual General Meeting
The 2024 Annual General Meeting will be held in
Darwin, in the Northern Territory of Australia. Notices
of the 2024 Annual General Meeting will be given to
the shareholders of the Company in accordance with
the Corporations Act. It is anticipated the meeting will
be an in person meeting, noting that the Company will
have the required facilities on standby should a virtual
or hybrid option become required.
Tax file numbers
Tax file numbers or exemption details are recorded
from shareholders who wish to provide the
information. Dividend advice statements, when issued
to shareholders, indicate whether or not a
shareholder’s tax file number has been recorded.
ERA normally pays fully franked dividends. In the
event of an unfranked dividend being paid, ERA will
be required to deduct tax at the top marginal rate from
the dividend paid to shareholders resident in Australia
who have not supplied a tax file number or exemption
form.
118 Energy Resources of Australia Ltd Annual Report 2023
4 April 2023
4 April 2023
4 April 2023
27 March 2023
27 March 2023
22 March 2023
22 March 2023
13 March 2023
13 March 2023
24 February 2023
9 February 2023
3 February 2023
3 February 2023
1 February 2023
25 January 2023
Cleansing Statement
Interim Entitlement Offer
Information Booklet
Investor Presentation
ERA announces $369
million renounceable
entitlement offer
Drawdown of $100m
Revised Credit Facility
Notice of Annual General
Meeting/Proxy Form
Historical Termination
Benefits
Appendix 4G
2022 Annual Report
Annual General Meeting
Information
Independent Board
Committee resumes funding
discussions
Initial Director's Interest
Notice
Appointment of Independent
Non-Executive Director
Appointment of Independent
Non-Executive Chair
Quarterly Cashflow Report -
Appendix 4C
22 February 2023
ERA 2022 Full Year Results
22 February 2023
Preliminary Final Report
22 December 2023
19 December 2023
12 December 2023
26 October 2023
Appointment of Non-
Executive Director
Resignation of Non-
Executive Director
Rehabilitation Accounting
Standards Update
Quarterly Cashflow Report -
Appendix 4C
26 October 2023
Quarterly Activities Report
26 September 2023
Rangers Project Area
Rehabilitation Update
31 August 2023
June 2023 Half Year Results
31 August 2023
28 July 2023
28 July 2023
16 May 2023
12 May 2023
10 May 2023
9 May 2023
28 April 2023
27 April 2023
27 April 2023
27 April 2023
26 April 2023
13 April 2023
4 April 2023
Appendix 4D and Half Year
Report
Quarterly Cashflow Report -
Appendix 4C
Quarterly Activities Report
Change in substantial
holding
Application for quotation of
securities - ERA
Completion of Shortfall
Bookbuild
Completion of Interim
Entitlement Offer
Appointment of Company
Secretary
Constitution
Address
2023 AGM Chairman's
Address
Quarterly Cashflow Report -
Appendix 4C
Dispatch of notices to
shareholders
Proposed issue of securities
- ERA
26 April 2023
Quarterly Activities Report
Details of these announcements are available at
https://www.energyres.com.au/investors/asx-
announcements/
27 April 2023
2023 AGM Results
2023 AGM Chief Executive's
25 January 2023
Quarterly Activities Report
2023 ASX Announcements (unaudited)
4 April 2023
4 April 2023
4 April 2023
27 March 2023
27 March 2023
22 March 2023
22 March 2023
13 March 2023
13 March 2023
24 February 2023
Cleansing Statement
Interim Entitlement Offer
Information Booklet
Investor Presentation
ERA announces $369
million renounceable
entitlement offer
Drawdown of $100m
Revised Credit Facility
Notice of Annual General
Meeting/Proxy Form
Historical Termination
Benefits
Appendix 4G
2022 Annual Report
Annual General Meeting
Information
22 February 2023
ERA 2022 Full Year Results
22 February 2023
Preliminary Final Report
9 February 2023
3 February 2023
3 February 2023
1 February 2023
25 January 2023
Independent Board
Committee resumes funding
discussions
Initial Director's Interest
Notice
Appointment of Independent
Non-Executive Director
Appointment of Independent
Non-Executive Chair
Quarterly Cashflow Report -
Appendix 4C
25 January 2023
Quarterly Activities Report
22 December 2023
19 December 2023
12 December 2023
26 October 2023
Appointment of Non-
Executive Director
Resignation of Non-
Executive Director
Rehabilitation Accounting
Standards Update
Quarterly Cashflow Report -
Appendix 4C
26 October 2023
Quarterly Activities Report
26 September 2023
Rangers Project Area
Rehabilitation Update
31 August 2023
June 2023 Half Year Results
31 August 2023
28 July 2023
28 July 2023
16 May 2023
12 May 2023
10 May 2023
9 May 2023
28 April 2023
Appendix 4D and Half Year
Report
Quarterly Cashflow Report -
Appendix 4C
Quarterly Activities Report
Change in substantial
holding
Application for quotation of
securities - ERA
Completion of Shortfall
Bookbuild
Completion of Interim
Entitlement Offer
Appointment of Company
Secretary
27 April 2023
Constitution
27 April 2023
2023 AGM Results
27 April 2023
27 April 2023
26 April 2023
2023 AGM Chief Executive's
Address
2023 AGM Chairman's
Address
Quarterly Cashflow Report -
Appendix 4C
26 April 2023
Quarterly Activities Report
13 April 2023
4 April 2023
Dispatch of notices to
shareholders
Proposed issue of securities
- ERA
Details of these announcements are available at
https://www.energyres.com.au/investors/asx-
announcements/
Energy Resources of Australia Ltd Annual Report 2023 119
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report
Ten year performance (unaudited)
YEAR ENDED 31 DECEMBER
Sales Revenue ($000)
-
35,555
190,347
242,457
209,677
201,273
211,181
267,765
332,777
379,166
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Earnings Before
Interest and Tax
($000)
Profit/(Loss) Before
Tax ($000)
Income Tax Expense/
(Benefit) ($000)
Profit/(Loss) After Tax
($000)
(1,420,040)
(169,490)
(648,967)
3,413
(1,103) (466,616)
(52,925)
(279,781)
(88,292)
(284,274)
(1,388,094)
(160,553)
(647,395)
8,643
6,252 (456,323)
(43,532)
(271,077)
(79,798)
(273,602)
-
-
2,817
(2,817)
-
(21,049)
-
-
195,695
(85,802)
(1,388,094)
(160,553)
(650,212)
11,460
6,252 (435,274)
(43,532)
(271,077)
(275,493)
(187,800)
Total Assets ($000)
828,800
679,771
855,930 1,000,153
566,577
635,766
797,312
819,432 1,100,815
1,341,724
Shareholders’ Equity
($000)
Long Term Debt
($000)
Current Ratio
Liquid Ratio
Return on
Shareholders’ Equity
(%)
Earnings Per Share
(cents)
(1,627,300)
(603,657)
(442,422)
214,579
(274,687) (280,790)
154,887
198,559
469,947
745,607
-
0.7
0.7
-
0.3
0.3
-
1.1
0.7
85.3
26.6
147.0
(8.6)
(4.3)
(17.6)
-
2.1
0.9
5.3
0.4
-
2.0
1.2
-
2.5
1.9
-
3.2
2.5
-
4.0
3.1
-
4.0
3.0
-
4.1
2.7
2.3
155.0
(28.1)
(136.5)
(58.6)
(25.2)
1.2
(84.1)
(8.4)
(52.4)
(53.2)
(36.3)
Share Price ($) closing
0.04
0.22
0.34
0.33
0.17
0.25
0.91
0.44
0.36
1.30
Price-Earning Ratio
(0.43)
(5.05)
(1.93)
82.50
13.75
(0.29)
(10.83)
(0.83)
(0.68)
(3.58)
Net Tangible Assets
per Share ($)
(0.07)
(0.16)
(0.12)
0.06
(0.54)
(0.54)
0.30
0.38
0.91
1.44
No. of Employees
190
198
204
317
352
355
358
356
374
389
Profit After Tax per
Employee ($000)
Ore Mined (million
tonnes)
Ore Milled (million
tonnes)
Mill Head Grade (%
U3O8)
Mill Recovery (%)
Production (tonnes
U3O8) Drummed
Sales – Ranger
Concentrates (tonnes
U3O8)
Sales – Other
Concentrates (tonnes
U3O8)
Sales – Total (tonnes
U3O8)
(7,305.8)
(810.9)
(3,187.3)
36.15
17.61
(1,226.1)
(121.6)
(761.5)
(736.6)
(482.8)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.02
0.07
86.1
-
2.5
0.07
84.9
-
2.5
0.08
86.8
-
2.5
0.09
86.6
-
2.6
0.10
84.7
-
2.7
0.10
84.9
-
2.5
0.10
82.0
-
1.3
0.11
81.5
34
1,574
1,751
1,999
2,294
2,351
2,005
1,165
242
1,302
1,711
1,577
1,467
2,089
2,130
2,183
2,164
-
-
10
20
-
-
9
-
984
242
1,302
1,721
1,597
1,467
2,089
2,139
2,183
3,148
Definition of statistical ratios
Current Ratio
Liquid Ratio
Gearing Ratio
Interest Cover
Return on Shareholders’ Equity
Earnings per Share
=
=
=
=
=
=
current assets / current liabilities
(current assets – inventory – prepayments – foreign exchange hedge asset on borrowings) / (current
liabilities – bank overdraft – foreign exchange hedge liability)
(long term debt + term creditors) / (shareholders’ equity + long term debt + term creditors)
earnings before interest and tax / interest expense
profit after tax / average shareholders’ equity
profit after tax / weighted average number of shares issued
120 Energy Resources of Australia Ltd Annual Report 2023
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Energy Resources of Australia Ltd Annual Report 2023 121
About ERAYear in ReviewBusiness StrategyFinancial PerformanceBusiness RisksFuture SupplyHealth and SafetyRegulatory FrameworkFinancial ReportContentsChair’s ReportChief Executive’s Report Energy Resource Australia
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