Energy Resources of Australia (ERA) H2 2024 earnings summary

Executive summary

• Revenue from continuing operations increased 9% to $37.2 million for 2024, mainly from interest income, while net loss after tax narrowed significantly to $246 million from $1,388 million in 2023, driven by lower rehabilitation adjustments and a Jabiluka impairment.

• Cash outflow from operating activities improved to $184 million from $223 million year-over-year, reflecting lower operating costs and reduced redundancy expenses.

• ERA completed a $766 million entitlement offer, providing funding for rehabilitation activities through Q3 2027; Rio Tinto now owns over 98% and intends to compulsorily acquire remaining shares.

Financial highlights

• Net loss after tax for 2024 was $246 million, including a $69 million net rehabilitation adjustment and an $89.9 million impairment of Jabiluka.

• Revenue rose to $37.2 million, up from $34.2 million, with interest income at $36.3 million (2023: $32.2 million).

• Cash and security receivables totaled $1,326 million at year-end, with no debt and $126 million in bank guarantees.

• Net tangible asset backing per share was negative at $(0.003), reflecting the ongoing deficit.

Outlook and guidance

• Strategic priorities are focused on executing the Ranger Project Area rehabilitation, progressing technical studies, extending the Ranger authority, and preserving undeveloped resources.

• Additional funding will be required beyond Q3 2027 to meet rehabilitation obligations.

• No final dividend declared for 2024.