Antinuclear

Uranium miner ERA: costs high, profits low

‘This is expected to adversely impact ERA’s 2010 earnings, as the small price margin associated with the sale of the purchased material is more than offset by the ongoing costs of operation,’’ the company said.

ERA shares fall on production downgrade, Sydney Morning Herald, October 13, 2010 – 1 Uranium miner Energy Resources of Australia has downgraded its 2010 production guidance, saying ore grade in the September quarter was lower than expected. ERA shares fell by more than 5 per cent after the Northern Territory uranium producer said it would need to purchase additional supplies to meet its sales commitments.In late morning trade, shares had fallen 80 cents, or 5.5 per cent, to $13.66……‘This is expected to adversely impact ERA’s 2010 earnings, as the small price margin associated with the sale of the purchased material is more than offset by the ongoing costs of operation,’’ the company said.

Rio Tinto holds a majority stake in Energy Resources, with around 68 per cent ownership.

ERA said mining activity had resumed at the bottom of the Ranger mine pit, about 260 km east of Darwin, after a prolonged wet season.

Work was also completed on removing an area of instability located on the south wall of the Ranger pit.

ERA shares fall on production downgrade

October 14, 2010 - Posted by Christina Macpherson | business, Northern Territory, uranium | antinuclear, Australia, nuclear costs, nuclear wastes, uranium