Insights

Here’s why the Energy Resources (ASX:ERA) share price is falling on Friday

Energy Resources’ cleanup project is exceeding initial cost and schedule forecasts …
The post Here’s why the Energy Resources (ASX:ERA) share price is falling on Friday appeared first on The Motley Fool Australia. –

The Energy Resources of Australia Limited (ASX: ERA) share price is selling off on Friday, down 4.05% to 35.5 cents.

The company is currently undergoing a rehabilitation program for the area surrounding its uranium Ranger Mine in the Northern Territory.

What’s driving the Energy Resources share price?

This morning, Energy Resources announced that the Ranger rehabilitation project will overrun both initial cost and schedule forecasts.

According to the release, the full extent of the overrun is not yet known and the company will update the market in due course.

Production at the Ranger Mine ceased in early 2021 after 40 years of operation.

The company will undergo an extensive cleanup of the area with activities such as managing contaminated materials and reinstating the affected landform.

The company estimates that over 18 gigalitres of process water need to be treated over the next five years and 90 million tonnes of material will need to be moved to create the final landform.

According to Energy Resources’ June half-year results, the rehabilitation project is a strategic priority to demonstrate the company’s commitment to “long-term sustainable operations in the region, create a sustainable, positive legacy and underpin potential future growth opportunities.”

The completion of the rehabilitation project was initially projected by January 2026.

Energy Resources held total cash resources of $725 million at 30 June 2021, comprised of $191 million in cash at bank and $534 million held by the Commonwealth Government as part of its Ranger Rehabilitation Trust Fund.

What’s next for Energy Resources?

Energy Resource’s near-term focus will be on completing its rehabilitation project.

During this time, the company said that it will attempt to maximise cash flow generation from its remaining inventories of drummed uranium oxide. As well as progress inorganic growth options for evaluation.

The Energy Resources share price is up 9.4% year-to-date.

The post Here’s why the Energy Resources (ASX:ERA) share price is falling on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Energy Resources right now?

Before you consider Energy Resources, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Energy Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why ASX uranium shares are diving double-digits on Monday

This week’s top ASX share versus top altcoin winner revealed

Is there a uranium ETF listed on the ASX?

Why are ASX uranium shares in focus today?

Why Energy Resources of Australia, Incitec Pivot, Sydney Airport, & Talga are rising

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!