ERA upbeat on stronger uranium market
The Energy Resources of Australia (ERA) has expressed optimism that the uranium market is bound for a more robust status over the long haul, as ERA chairman David Klingner is confident that nuclear power will remain as the forefront option for global energy solution.
The AAP has reported on Wednesday that Dr Klinger is confident that more investments are bound to hike uranium output, notwithstanding that current market prices have reached stable levels but well below the record numbers posted in 2007.
Basing on ERA's 30 years of operations, Dr Klinger said that the present prices are actually higher than what had been seen before, as he stressed that productions and sales projection for 2010 will most likely peak to the same levels of recent years.
He is predicting though that projections will pick up by third quarter of 2010, as he attributed the dismal turnovers posted on the first half of the year to mine site sequencings and expected lower grades.
However, Dr Klinger cautioned that higher expenditures on scheduled maintenance and important development projects are set to slow down the company this year and it is expected that "all of these factors will negatively impact earnings in the first half and for the full year."
Nevertheless, according to AAP, ERA is projecting that the averaged realised sales price for the full 2010 could replicate the average registered in 2009, in the event that market prices will maintain their softer levels as compared to last year.