Photo by: Bloomberg
PERTH (miningweekly.com) – Embattled uranium miner Energy Resources of Australia (ERA) has reported a 138% decline in net profits for the half-year ended June, which was recorded at a loss of A$127.2-million.
This was compared with a net loss of A$54-million during the previous comparable period, as no uranium oxide was produced during the period under review, after operations at its Ranger mine, in the Northern Territory, were suspended in December last year.
A progressive restart of the Ranger processing plant started in early June, following the receipt of written approval from the Commonwealth and state governments. Plant operations at the Ranger mine were suspended after a mixture of slurry moved outside the containment area, following the failure of a leach tank.
ERA has previously reported that full processing capacity would be reached during the September quarter.
Meanwhile, revenue for the half-year under review was up 26% on the previous corresponding period, to A$171.6-million on the back of higher sales volumes. ERA noted that a decrease in the average realised sales price was partially offset by a weaker Australian:US dollar exchange rate.
Sales volume for the half-year were also up to 1 524 t, compared with the 1 147 t sold in the previous corresponding period, with sales in the first half of the year supplied by existing levels of finished goods inventory on hand.
For the second half of the financial year, sales volumes were expected to be in line with the half-year ended June.