Antinuclear

Energy Resources of Australia’s 82% uranium profit loss

….Meanwhile, the net profit after tax declined by 82%,…..the global financial crisis has led to delays in nuclear reactor builds in most regions

ERA profit falls sharply, cuts FY production guidance, MINING WEEKLY, By: Esmarie Swanepoel, 30th July 2010) – ASX-listed uranium-miner Energy Resources of Australia (ERA) on Friday reported an 82% drop in half-year profit and downgraded its production guidance for the 2010 financial year to between 4 300 t and 4 700 t on the back of reduced production during the six months ended June.
The Rio Tinto subsidiary said in its interim statement that uranium oxide production for the six months to June had declined by 36%, compared with the corresponding period in 2009, to 1 717 t.

The decrease was primarily owing to a 48% reduction in the mill head grade to 0,15% uranium oxide, during the first half of the year. ERA said that the significant decline in mill head grade was mainly as a result of issues with mine sequencing………..Meanwhile, the net profit after tax declined by 82%,…..
“In the short term, the uranium market appears to be well supplied due to adequate inventory coverage held by utilities along with increased production, especially from Kazakhstan,” the miner said.

“Moreover, the global financial crisis has led to delays in nuclear reactor builds in most regions other than China. This situation could result in spot prices remaining around the current levels for the remainder of this year, and possibly beyond.”

August 2, 2010 - Posted by Christina Macpherson | business, energy, Northern Territory, uranium | antinuclear, Australia, energy, ERA, nuclear costs, uranium