Energy Resources Australia, the company that owns the Ranger uranium mine in Kakadu, has announced that it expects a profit this year of between $45 and $50 million.

This is a major slump for ERA, which last year posted a record profit of $272 million. 

BGF Equities resources analyst Warwick Grigor says the market has responded unfavourably.

"ERA wasn't able to deliver into all of their contracts so they've had to go out and buy a few hundred tonnes on market just to deliver those contracts.

"It's an embarrassing position to be in and it would have cost the company a bit of money. 

"To put it simply the share-price has tanked over the last couple of days. It was trading above $13.50 and has dropped $2."