Energy Resources of Australia (ERA) has released its June 2023 half year results, where it revealed the 2022 feasibility study for the Ranger project’s rehabilitation is expected to be finished in September.
ERA has recorded incurring negative cash flow from operating activities equalling to $113 million, compared to the negative $34 million recorded during the 2022 financial year (FY22).
It currently holds cash resources totalling to $823 million, comprising of $227 million in cash at bank, $100 million investments in term deposits with maturity dates greater than three months and $496 million of cash held by the Federal Government as part of the Ranger rehabilitation.
Rehabilitation costs incurred totalled to $114 million, compared to the $80 million this time last year. It also recorded a net loss after tax of $331 million compared to a net loss after tax of $34 million for the same period in FY22.
“The half-year ended 2023 was adversely impacted by increases to the rehabilitation provision partially offset by lower non-cash discount unwind and a reduction in the estimate due to the increase in the discount rate,” ERA said.
“Further contributing to the 2023 half-year loss was no uranium oxide sales revenue compared to $35 million for the same period in 2022, with the sale of ERA’s last drum of uranium oxide from the Ranger project area concluded on May 31 2022.”
The rehabilitation provision now sits at $1446 million.
“In determining the rehabilitation provision, ERA has considered the preliminary findings from the 2022 re-forecast, recent work in preparation for the interim entitlement offer completed in the period, and preliminary findings from the 2022 feasibility study process, which is ongoing,” ERA said.
“The estimate has been updated to the extent that changes have reached a level of development that allow ERA to determine that it is probable that an outflow of resources will be required to settle the obligation.
“As a result, in 2023 the cost of closure estimate has increased by $368 million which brings the total cost of completing the rehabilitation to $2.18 billion resulting in ERA recording an increase to the closure provision estimate of $313 million.”
In May 2022, ERA commenced a feasibility study to further refine the Ranger project area rehabilitation execution scope, risks, cost, and schedule.
“The 2022 Feasibility Study has progressed during the last six months and is, subject to the additional studies mentioned below, expected to be completed in September 2023,” ERA said.