Photo by: Bloomberg
PERTH (miningweekly.com) – Uranium miner Energy Resources of Australia (ERA) has narrowed its net loss during the financial year ended December, from the A$219-million reported in 2012 to A$136-million.
Earnings before interest, tax, depreciation and amortisation were up 195% on the previous financial year, to A$33-million, including a non-cash finished goods inventory writedown of A$21-million.
ERA told shareholders on Friday that the 2013 finances were positively impacted by the company’s decision not to purchase uranium oxide during the year, and that mining operations during the term had focused on the backfill of Pit 3 and reduced noncash costs.
This was, however, partially offset by reduced sales revenue and the finished goods inventory adjustment to the net realisable value.
During the year, revenue from sales decreased 10%, to A$355.8-million, while revenue from continuing operations was down 12% on the previous financial year to A$370-million.
ERA said that its sales strategy for the year focused on ensuring a reliable long-term supply of uranium oxide (U3O8) to customers, with pricing focused on the long-term price rather than the spot price.
ERA produced some 2 960 t of U3O8 in the year under review, which was 20% less than that produced in 2012, as lower mill rates affected output. The suspension of processing operations following the failure of a leach tank in December also negatively affected operations, ERA said.
Processing operations at the Ranger mine, in the Northern Territory, remain suspended pending the completion of a full investigation and regulatory approvals to restart.
ERA was conducting an independent investigation that would run in parallel with the government investigation.