ERA: Mid-year profit despite forecast

[ERA 26, July] Energy Resources of Australia (ERA) has posted a mid-year net profit of A$5.7 million ($5.03 million), despite its earlier predictions of a first half loss of A$5-10 million ($4.4-8.8 million), largely due to exceptionally heavy rainfall and flooding at its Ranger uranium mine earlier in the year. The half-year profits were 71% down on the same period for 2006. Uranium production for the period was 2496 tonnes, up 21% on 2006 figures. ERA attributes the production improvement to an increase in ore milled of higher head grade, but also notes that stockpiled ore contributed significantly to first half production, as mining activities were constrained in the second quarter of the year following the floods. Full year production is likely to exceed 5200 tonnes, ERA says, with 2008 production of over 5000 tonnes. As well as water removal and disposal steps already put in place, ERA says it will continue to work on strategies to reduce further the impact of weather events, possibly including the installation of additional water treatment capacity.