Embattled uranium miner, Energy Resources of Australia (ERA) has released its full year results, delivering a $154 million loss for 2011 and a downgrade in its production guidance.

 

Production from ERA’s Ranger mine in the Northern Territory is now predicted to be 3000-3700 tonnes of uranium oxide, down from  3500-4500 tonnes, as a result of the impact of wet weather on the extraction of high-grade ore in the open-pit mine.

 

The CEO Rob Atkinson's report attributed the net loss after tax of $154 million to the negative adjustment to stockpile inventory ($99 million) following the decision not to proceed with the Ranger Heap Leach Facility Project, the increase in non-cash costs ($53 million) and the impact of suspension of processing operations.

 

The report notes that the short-term market “remains subdued as excess supply clears the market”, but the long-term outlook is positive with some planned new mines struggling to enter production. Market prices are predicted to rise in the 2014-20 period.

 

The full presentation is available here.