URANIUM producer Energy Resources of Australia has come close to exceeding its upper production guidance for 2019 and has realised slightly higher prices for its uranium oxide product.
ERA stated it expects the uranium market to remain challenging in the near term, with the market’s surplus expected to continue into the medium term.
“China-led demand growth is expected to support a rebalancing of the market over the longer term as China and other Asian countries continue to progress their nuclear power programs in accordance with long-term energy policy objectives,” ERA stated in its 2019 results announcement on Wednesday.
ERA achieved an average price of US$41.89/pound last year on all sales of its uranium oxide product including contracted sales and spot market shipments.
The average realised price in the uranium oxide spot market was US$25.90/pound in 2019.
The Rio Tinto-controlled company’s Ranger mine in the Northern Territory produced 1751t of uranium oxide in the 2019 year, and close to the higher end of its guidance range of 1400 to 1800t.
For the 2018 year, production from Ranger was 12pc higher at 1999t.
Sales of uranium oxide in 2019 were 1597t for ERA up from 1467t in 2018.
The company recorded a net profit after tax of $6m in 2019 compared to a net loss after tax of $435m in 2018.
In 2018, ERA’s earnings were adversely affected by a change in the rehabilitation cost for Ranger, and an impairment charge of $433m after tax.
Revenue for ERA was $210m in 2019, up marginally from $201m in 2018.
ERA recently competed a share offering to raise $476m to fund the rehabilitation of the mine site, which borders Kakadu National Park.
ERA chief executive Paul Arnold said it was the company’s strategic priority to rehabilitate a project area at the site.
Ranger is Australia’s longest operating uranium mine and has produced 130,000t of uranium oxide during its 35 years in business.
