Bloomberg News

Energy Resources Plunges After Worse Than Expected Loss

February 14, 2012

Feb. 1 (Bloomberg) -- Energy Resources of Australia Ltd., the uranium producer controlled by Rio Tinto Group, fell by the most in more than 10 months in Sydney trading after posting a worse than expected full-year loss.

Energy Resources, operator of the Ranger mine in Australia’s Northern Territory, declined 14 percent to A$1.33 at the close, the most since March 15, 2011. The benchmark S&P/ASX 200 fell 0.9 percent.

The company posted a net loss of A$153.6 million ($163 million) for the year ended Dec. 31, compared with an average estimate for a loss of A$102.4 million based on 13 analysts compiled by Bloomberg. The Sydney-based company had a profit of A$47 million in the prior year, ERA said in a statement today.

Energy Resources expects uranium oxide production for 2012 to be between 3,000 and 3,700 metric tons, it said today. Sales are expected to be “broadly in line with production,” it said.

The uranium market should “remain at present levels until demand increases and nuclear plants in Japan begin to restart,” the company said in the statement. “In the short term the uranium market appears to be adequately supplied with utilities holding sufficient inventories.”

--Editors: Andrew Hobbs, Ryan Woo

-0- Feb/01/2012 04:53 GMT

-0- Feb/01/2012 05:15 GMT

-0- Feb/01/2012 05:27 GMT

To contact the reporter on this story: James Paton in Sydney at jpaton4@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net -0- Feb/01/2012 04:41 GMT


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