Energy Resources of Australia Reports $255 Million Net Loss in H1 2015

Energy Resources of Australia (ASX:ERA) announced its 2015 first half financial and operational results, which showed a net loss of $255.3 million for the six months ending June 30.
As quoted in the press release:

ERA generated positive cash flow from operating activities of $14.1 million for the half-year ended 30 June 2015. This compares to a cash out flow of $30.2 million for the half-year ended 30 June 2014. This improvement is the result of a focus on maximising cash flow from the production of uranium oxide from stockpiled ore, together with lower expenditure on exploration, evaluation and rehabilitation activities.
ERA’s net loss before tax was significantly improved at $58.7 million compared to $190.7 million in the half-year ended 30 June 2014. ERA’s net loss after tax for the half-year ended 30 June 2015 was $255.3 million compared with a net loss of $127.2 million for the same period in 2014. The net loss after tax for the half-year included a non-cash charge for the write-down of ERA’s deferred tax asset of $196.7 million. Following ERA’s announcement on 11 June 2015 that the Ranger 3 Deeps project will not proceed to Final Feasibility Study in the current operating environment, the Company considered that the criteria under Australian Accounting Standards for the recoverability of carried forward tax losses were no longer satisfied. As the write down is a non-cash item, it does not have any impact on cash flow or ERA’s existing operations, nor will it impact the availability of tax losses in future periods.
Uranium oxide production for the period was 879 tonnes. This compares to zero uranium oxide production for the 2014 half-year (due to the suspension of processing operations following the failure of Leach Tank 1 on 7 December 2013).
Revenues from sales of uranium oxide remained stable, with $174.4 million for the period compared to $171.6 million for the June 2014 half-year. A decrease in sales volume was offset by marginally higher realised sales prices as well as by a weaker Australian/US dollar exchange rate. Sales volume for the period was 1,245 tonnes, compared to 1,524 tonnes for the June 2014 half-year.  Forecast sales in the second half of 2015 are expected to be broadly aligned to the first half of 2015.

Click here to read the full Energy Resources of Australia (ASX:ERA) press release.