Thursday, 26 July, 2007

AFX News Limited

Uranium miner Energy Resources of Australia Ltd (ERA) said Thursday its first half to June net profit plunged 71 percent to 5.7 million Australian dollars from 19.9 million a year earlier due to mining being disrupted by flooding at its Ranger project in Australia's Northern Territory.

The single mine company, 68 percent-owned by Rio Tinto, said last month it had expected to report a loss of 5-10 million dollars for the half.

It said a number of positive accounting adjustments meant that it was able to instead report a small profit.

ERA said the reduction in first-half profit was largely due to the deferral of production and sales deliveries associated with exceptionally heavy rainfall at the Ranger operation in late February and early March and a delay in a vessel arrival to transport product to overseas customers.

Earnings before interest and tax (EBIT) fell to 12.4 million dollars from 32.9 million in the first half of 2006.

Revenue for the half dropped 26 percent to 114.3 million dollars.

The company did not recommend a dividend payment. Last year shareholders received a six cents a share interim payment.