ERA posts A$275m loss on impairment, output up

PERTH (miningweekly.com) – Uranium miner Energy Resources of Australia (ERA) has reported an after-tax net loss of A$275-million for the full year ended December, following a A$197-million impairment on the company’s deferred tax assets during the half-year.

Uranium oxide (U₃O₈) production for the full year reached 2 005 t, which was up 72% on the 1 165 t produced in the previous year, as the Ranger project, in the Northern Territory, reported a full year of operations.

During 2014, the mine operated for about six months, after slurry moved outside the containment area following the failure of a leach tank.

ERA noted that milled grade reported in 2015 was slightly below that of 2014, but was in line with the expected stockpile grades.

Revenue for the full year declined to A$333-million, from A$379-million reported in 2014, with reduced sales volumes impacting the overall bottom line.

Sales volumes in 2015 declined to 2 183 t, compared with the 3 148 t sold in 2014. However, the average realised sales price achieved during 2015 was higher at $51.99/lb, compared with the $49.50/lb reported in 2014.

ERA on Friday reported cash flows from operations of A$85-million, compared with the loss of A$54-million in 2014.

For 2016, ERA was forecasting U₃O₈ production of between 1 900 t and 2 300 t, while sales were expected to be broadly in line with production.

The miner previously announced a strategic review of its business after the company failed to gain approval for an extension to the Ranger authority at its Ranger mine.

The current Ranger authority permitted mining and processing activities until January 2021 and allowed for access for rehabilitation activities until January 2026.