ERA’s uranium profit fell 82% !
ERA in July reported an 82% plunge in first-half net profit to 22.7 million Australian dollars (about US$22.4 million), largely thanks to the lower ore grades.
Uranium Miner Expects Profit Hit – WSJ.com, By ROSS KELLY, 14 Oct 10, SYDNEY—Energy Resources of Australia Ltd., the uranium arm of mining giant Rio Tinto, on Wednesday downgraded its annual production guidance for the second time this year, ….The production shortfall means ERA will have to cover some supply requirements with purchases, further eroding its earnings.
ERA owns Ranger, a major mine that provided 9% of the world’s uranium oxide last year. The company, 68%-owned by Rio Tinto, said the fall in output was caused by disappointing ore grades. Without expansions, Ranger’s ore body is due to run out by 2012.Chief Executive Rob Atkinson said that ERA still expects to spend more money in 2010 than in 2009, partly on examining expansion options for Ranger,……..
……Ranger is located in Australia’s Northern Territory, where operations can be subdued by heavy rains during the traditional wet season. ERA downgraded its output guidance on July 13 after encountering lower-grade yellow cake when seasonal rains dried up…
..The Darwin-based company cut its annual production forecast to 3,900 tons from 4,300 to 4,700 tons, meaning it will fall well short of its 5,000 ton supply requirement………..
Selling purchased product is expected to adversely impact ERA’s earnings because the small margin earned from selling external material is more than offset by the company’s ongoing costs of operation.
Persistent lower grades have prompted ERA to launch an extra drilling program in the current pit to improve its confidence about the quality and volume of ore for the remainder of the mine’s life………
The company is considering an expansion in which it would tap a 30,000 to 40,000 metric ton resource in the Ranger 3 Deeps mineral deposit. It reiterated Wednesday that it is finalizing studies on whether to build a “decline”—a tunnel bored through the resource to facilitate closely spaced drilling and a geotechnical assessment—and expects to make a final decision on the decline “in the coming months.”
ERA also said Wednesday that it continues to prepare a draft environmental impact statement for its proposed heap leach facility, adding that the formal assessment process by regulators is likely to be completed in the 2011 first half. Heap leaching uses acid filtration to extract minerals from poor quality ore.
ERA in July reported an 82% plunge in first-half net profit to 22.7 million Australian dollars (about US$22.4 million), largely thanks to the lower ore grades.
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1.This month.
Zoom webinar – “Nuclear Winter: The Environmental Consequences of a Nuclear Exchange.”
April 7th at 11:30 am PST / 2:30 pm EST
Nuclear Winter: The Environmental Consequences of a Nuclear Exchange”
Join us for an informative webinar with renowned atmospheric scientist, Professor Brian Toon, as he discusses the environmental risks and global impacts of a nuclear war. Despite the potential damage caused by the blast from even small nuclear weapons, many countries continue to invest in and expand nuclear arsenals. Professor Toon will provide a scientific assessment of civilian fatalities, agricultural failures, climate concerns, and complications with food supply that would follow any international nuclear conflict. We need to plan how to prevent nuclear conflict and avoid catastrophe. Politicians and military planners must be made aware of global climate and agricultural complications that would ensue. Don’t miss this opportunity to learn from, and engage in, this vital conversation
The Road to War brings a sharp focus to why it is not in Australia’s best interest to be dragged into a war with China which will almost inevitably go nuclear very quickly. The filmmaker has interviewed some of Australia’s senior foreign policy analysts who have vast experience behind them in analysing what really is going on here as the United States rattles its sabres with China. And sets us up to be its proxy, like the poor Ukranians have been fed into the Meatgrinder. So America can remain the Top Dog. The Road to War reveals how the United States through its spy base at Pine Gap and by stationing six nuclear capable B52 bombers in the Top End (without permission from the traditional owners) is making Australia a prime nuclear target if the current war of words suddenly melts down into full scale war.
The Road to War shows the implicit connection between Carbon emissions (the US military uses a whopping 70% of America’s annual petroleum to move its armies and vast War Machine around the globe to its 800+ military bases..but under a loophole wangled at Kyoto, the US military does not have to report its C02 annual emissions). The Road to War starts screening at selected cities and regional centres in March. See the trailer end for details.
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