Uranium miner Energy Resources of Australia Ltd (ERA) said Friday its net profit for the year to December rose 75 percent to 76.1 million Australian dollars from 43.6 million dollars a year earlier, helped by higher prices for uranium oxide.

The average forecast of analysts polled by Thomson Financial was for a net profit of 63.9 million dollars.

The miner, 68 percent owned by Rio Tinto, said it sold 5,324 tonnes of uranium oxide at an average price of 25.06 US dollars a pound in 2007, compared with 5,760 tonnes at an average price of 18.36 US dollars a pound in 2006.

Spot prices soared as high 136 US dollars a pound last year, but have since retreated to around 90 US dollars a pound.

ERA said the price realised was only partially influenced by spot prices due to its diversified sales contract portfolio.

Revenue for the year rose 14.2 percent to 362.4 million Australian dollars from the previous year's 317.2 million dollars.

It said production at its only mine, the Ranger mine in Australia's Northern Territory, rose 14 percent to 5.412 tonnes of uranium oxide, which is also known as yellowcake.

The result was achieved despite disruptions to mining caused by flooding in the Ranger open pit and reflected an improved operational performance and an increase in grade of ore mined.

ERA said it expects sales in 2008 to be similar to 2007, possibly accompanied by a modest replenishment of inventory in the logistics chain.

A 57 million dollar mine expansion announced in September is currently on budget and ahead of schedule, the company said.

It said mining rates will increase this quarter due to the expansion.

ERA said a pre-feasibility study to examine options to further expand operations is progressing well and will be completed in mid-2008.

Looking forward, the miner said the outlook for uranium demand appears positive.

'ERA continues to position itself to benefit from this by seeking opportunities to add value by expanding production and extending the duration of output from resources available,' it said.

The company announced a 20 cents a share final dividend, up from 17 cents a year earlier.

At 10.40 am (2340 GMT), ERA was up 72 cents or 3.8 percent at 19.55 dollars, while the S&P/ASX 200 was up 89.9 points or 1.6 percent at 5,740.2.

(1 US dollar = 1.11 Australian dollars)