ERA's first-half 2008 uranium production down, but sale price up
Tom Harrison
Platts
Energy Resources of Australia said Friday that uranium production from its Ranger mine was lower in the first half of 2008 than it was a year ago, but its revenue and profit for the period rose as its average realized sales price more than doubled.
Production totaled 2,357 metric tons, down from 2,496 mt in H1 2007 because of lower mill head grade in second-quarter 2008, ERA said.
ERA said it sold 1,746 mt of uranium in H1 2008, down from 2,200 mt the same period a year ago. ERA said its average realized sales price in H1 2008 for uranium was US$35.69/lb, up from $16.90/lb for H1 2007. It said it expects its likely average price in H2 2008 to be "somewhat lower" than in H1 2008.
Revenue for the first half of this year was Aus$157.4 million (US$150.5 million), up from $114.3 million in first-half 2007, while after-tax net profit for the first half of the year was $38.9 million, up from $5.7 million in the same period a year ago, it said.
ERA also said it has reached an agreement for a contract to supply uranium to an electric utility in China beginning in fourth-quarter 2008. After several years of negotiations and internal deliberations, Australia and China agreed in 2006 to safeguards terms covering export of Australian uranium to China.
ERA said it is moving forward with plans for a potential expansion of uranium production from its Ranger mine. It said it has decided to begin the process of getting approvals from regulators for an expansion, targeting an additional 8,000 mt of uranium, and for a heap leach facility. In heap leaching, ore is placed on a pad and a leach solution is used to extract the uranium. ERA began studying a potential expansion in September 2007 as it sought to extend the mine's life.
Production totaled 2,357 metric tons, down from 2,496 mt in H1 2007 because of lower mill head grade in second-quarter 2008, ERA said.
ERA said it sold 1,746 mt of uranium in H1 2008, down from 2,200 mt the same period a year ago. ERA said its average realized sales price in H1 2008 for uranium was US$35.69/lb, up from $16.90/lb for H1 2007. It said it expects its likely average price in H2 2008 to be "somewhat lower" than in H1 2008.
Revenue for the first half of this year was Aus$157.4 million (US$150.5 million), up from $114.3 million in first-half 2007, while after-tax net profit for the first half of the year was $38.9 million, up from $5.7 million in the same period a year ago, it said.
ERA also said it has reached an agreement for a contract to supply uranium to an electric utility in China beginning in fourth-quarter 2008. After several years of negotiations and internal deliberations, Australia and China agreed in 2006 to safeguards terms covering export of Australian uranium to China.
ERA said it is moving forward with plans for a potential expansion of uranium production from its Ranger mine. It said it has decided to begin the process of getting approvals from regulators for an expansion, targeting an additional 8,000 mt of uranium, and for a heap leach facility. In heap leaching, ore is placed on a pad and a leach solution is used to extract the uranium. ERA began studying a potential expansion in September 2007 as it sought to extend the mine's life.