Energy Resources (ASX: ERA) share price has dropped after the company’s update this morning on its Ranger uranium mine shutdown plans.
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The Energy Resources of Australia Limited (ASX: ERA) share price has fallen after an announcement the miner will cease production at its Northern Territory Ranger uranium mine today. The company also released an update this morning on its quarterly production figures.
After lifting more than 3% in morning trading, the Energy Resources share price has since dropped 1.59% to trade at 31 cents, at the time of writing.
What did Energy Resources report this morning?
Energy Resources of Australia advised that uranium oxide processing at its 100% owned Ranger mine will cease today, as required by the Ranger authority.
The miner started uranium mining at Ranger in 1980. Since then, the mine has produced more than 132,00 tonnes of uranium oxide. The mine is located 260km east of Darwin, near the town of Jabiru, which was originally constructed for the mine’s employees.
Energy Resources reported that progressive rehabilitation activities on the Ranger Project Area are continuing. These include the transfer of tailings from its Tailings Storage Facility to Pit 3. The company forecasts bulk dredging works will be finished by late January. Tailings Storage Facility floor cleaning activities are expected to occur through the first half of 2021.
In its operations review, the company revealed it had produced 390 tonnes of uranium oxide in the December 2020 quarter. That brings uranium oxide production for the full year to 1,574 tonnes, which comes in at the upper end of its production guidance.
Energy Resources share price and company snapshot
Energy Resources is one of Australia’s largest uranium producers. The company mines, processes, and sells uranium oxide. Shares first began trading on the ASX in November 1980.
The first 11 months of 2020 were fairly uneventful for Energy Resource’s shareholders. Especially when you consider the remarkable COVID-driven volatility witnessed across most S&P/ASX 200 Index (ASX: XJO) shares last year. The Energy Resources share price was not immune to the wider selloff, however, with shares falling 17% from late February through to 23 March.
The share price really began lifting off on 10 December. Shares are up more than 103% since then. In a query from the ASX on 15 December, the company stated it was unaware of any specific reasons for the share price surge.
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Motley Fool contributor Bernd Struben 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.