Last month, ERA said it will not go ahead with the final feasibility study of the Ranger 3 Deeps project in the existing operating environment.
The company’s decision was based on the uncertainty over the uranium market’s direction in the immediate future as the market was not improved as per its expectations.
ERA said the write-down on the deferral will be shown as noncash item and will not have an impact on its cash flow or existing operations, nor impact its ability to use available tax losses in future.
The company noted that it will continue to conserve cash until it has greater certainty with respect to an extension to the Ranger authority.
Negotiations are continuing with the Northern Territory and Commonwealth Governments and the representatives of the Mirarr Traditional Owners on an extension to the authority. It will enable ERA to revisit the project’s economics over time.
Ranger mine is situated 8km east of Jabiru and 260km east of Darwin, located in Australia’s Northern Territory.
Uranium has been mined at the facility for thirty years. The plant is one of only three mines in the world to produce more than 110,000 tonnes of uranium oxide.
