April 21, 2010


Energy Resources of Australia Ltd (ERA) says the long-term outlook for the uranium market remains strong.

"Despite price weakening in 2009, the long-term outlook for the uranium market remains strong, with nuclear power recognised as a key element of the global energy solution," chairman David Klingner told the company's annual general meeting.

"While market prices have stabilised well below the historic highs reached in 2007, current prices are still significantly higher than for most of ERAs 30-year history, supporting investments to increase output," Dr Klingner said in a statement lodged with the stock exchange on Wednesday.

ERA reiterated that full year production and sales for 2010 were expected to be broadly in line with the levels of recent years.

Production and sales will be more heavily weighted towards the second half of the year.

Dr Klingner said the lower production, and consequent sales profile, during the first half is largely a consequence of mine sequencing and anticipated lower grades.

"We will continue to see higher expenditure on scheduled maintenance programmes, along with expenditure on ERAs significant development projects, during 2010.

"We expect that all of these factors will negatively impact earnings in the first half and for the full year."

Assuming that market prices remain slightly softer than during 2009, ERA expects the average realised sales price for the first half of 2010 and the full year to be broadly in line with 2009.

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