Thursday, 7 June, 2007

by Bruce Hextall
AFX

Energy Resources of Australia Ltd (ERA) said it expects to report a net loss of 5-10 mln aud for the first six months of 2007 because of production disruptions at its Ranger uranium

mine in Australia's North Territory caused by flooding in February and early March.

The single mine company, 68 pct owned by Rio Tinto, reported net profit of 19.9 mln aud for the first half of 2006.

ERA declared force majeure on its contracts on March 7 following wet weather that resulted in 750 millimeters of rain in one 72-hour period alone.

ERA said the anticipated pattern of sales deliveries for the remainder of 2007 should not affect its

earlier production and sales guidance.

The miner still expects full-year production to be similar to 2006, while production in 2008 is likely to

be 25-35 pct lower than 2006 when 4,748 metric tons of uranium oxide were produced.

Output last year was nearly 20 pct lower than the previous year due to elevated water levels in

Ranger's open pit mine caused by heavy rains during the Northern Territory's summer wet season.

ERA said sales in 2007 and 2008 are expected to be generally in line with production but the timing of sales this year will be heavily weighted to the second half.

ERA will release its first-half results on July 26.