ASX News Energy Resources Australia (ERA)

Energy Resources Australia (ERA) is one of the largest uranium producers in the world, providing over 10% of the world’s uranium production through long-term contracts.

ERA sells its product, drummed uranium oxide, to power utilities in Asia, Europe and North America under strict international and Australian Government safeguards.

The company is majority-owned by mining giant Rio Tinto (RIO), which has a 68% stake in the company.

Since October 2009, ERA has slumped from around $27 to just $13, making it one of the shares to sell during the period.

On 13 October, ERA released its 3Q10 production report. Uranium oxide production rose 10% from the previous quarter, however was down 36% from the same period last year.

Due to the lower-than-expected production numbers, ERA has lowered its full year production guidance to 3,900 tonnes, from the previous 4,300 – 4,700 tonnes.

ERA shares sank 6.4% on the day of the announcement, making it one of the worst performers on the ASX.

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