Photo by: Bloombeg
PERTH (miningweekly.com) – Uranium miner Energy Resources of Australia (ERA) has reported a net loss of $255.3-million for the six months ended June 30, owing to a $197-million impairment charge.
ERA had previously warned shareholders of the massive write-off, following the deferral of the Ranger 3 Deeps underground project, in the Northern Territory.
The loss for the interim period compared with a net loss of $127.2-million in the previous corresponding period.
During the six months under review, uranium production reached 879 t.
Uranium production in the six months to June 2014 had amounted to nil, owing to the suspension of processing operations at the Ranger mine following the failure of a leach tank in December 2013.
During the period under review, sales volumes declined to 1 245 t, compared with the 1 524 t sold in the 2014 interim period. However, the decrease in sales volumes was offset by marginally higher realised sales prices, as well as a weaker Australian/US dollar exchange rate.
Sales revenues of $174.4-million were recorded for the period ending June, up 2% from the previous corresponding period.
Despite the upturn in uranium prices, ERA had warned that the market outlook in the near-term would remain challenging for producers, as spot prices had remained weak in the first half of 2015 owing to an oversupply of the market.
The challenging market conditions prompted ERA in June to abandon the feasibility studies on the Ranger 3 Deeps underground mine.
First production from the mine had initially been targeted for late this year.