ASX Shares to Sell Energy Resources Australia (ERA)

ASX Shares to SellEnergy Resources Australia (ERA)

Energy Resources Australia (ERA) produces uranium and distributes its products to utility companies in Asia, Europe and North America. It is 68.4% owned by major mover on the ASX, Rio Tinto.

In Australian news, ERA has reported a 7% on-quarter drop in uranium oxide production for 2Q10.

The drop in production at its Ranger mine was attributed to mine sequencing issues and higher than normal rainfall.

As a result, ERA downgraded FY10 uranium oxide production to 4,300 – 4,700 tonnes, from the previous 5,240 tonnes.

ERA shares slumped over 4% following its disappointing production numbers to close at $14.05 a share.