ERA Reports Loss, Cites Heavy Rains

Uranium mine operations at the Ranger in Kakadu Park was suspended for extended periods due to heavy downpours, prompting Energy Resources of Australia (ASX:ERA) to report a $30-$50 million loss for the first half of 2011. This is against $22.7 million net profit for the same period last year.

The suspension, together with large pond water volume contained in the mine will expect an ouput of 2,400 tonnes of uranium dioxide at ERA's Northern Territory. The suspension for the power plant is extended for another three months.

Earlier, failed production, higher maintenance costs and stronger Australian dollar took a heavy toll to their profit as it had fallen by 82 percent last year of the same quarter. A net profit of $127.6 million in the same period in 2009, with 3793 tonnes output. ERA closed down its shares at 34 cents, or 4.22 percent at $7.72. Energy Resources of Australia is one of the largest uranium producers internationally and Rio Tinto (ASX:RIO) owns majority of the shares.