PERTH (miningweekly.com) – Uranium miner Energy Resources of Australia (ERA) has narrowed its loss during the half-year ended June, compared with the previous corresponding period.
The ASX-listed miner on Wednesday reported a loss of A$0.5-million for the interim period, compared with a loss of A$196.5-million in the first six months of 2016.
Revenue for the half-year declined by 3% compared with the previous corresponding period from the A$154.4-million reported in the first six months of 2016, to A$150.4-million, while revenue from ordinary activities remained relatively unchanged at A$171.2-million.
ERA told shareholders that revenue for the half-year was impacted by a lower realised sales price and an unfavourable movement in the Australian:US dollar exchange rate. This was, however, partially offset by an increase in sales volumes.
Sales volumes increased to 1 464 t, compared with the 1 148 t delivered in the first half of 2016, with uranium oxide production reaching 1 046 t during the period, compared with the 1 082 t in the previous corresponding period.
ERA meanwhile warned shareholders that the uranium market would remain challenging in the near term, as spot prices continue to remain volatile owing to an oversupply in the market.
The miner said that while supply was expected to continue to exceed demand in the near term, China-led demand growth should support a rebalancing of the market over time.