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Energy Resources posts FY'16 net loss amid impairment, low revenue

Rio Tinto unit Energy Resources of Australia Ltd. again decided not to declare a final dividend for the 2016 financial year after recording a net loss of A$271 million in 2016.

The company did not announce a dividend for 2015 when it recorded a net loss of A$275 million.

The 2016 results were impacted by a A$231 million noncash impairment of the company's property, plant and equipment, the company said Jan. 31.

Revenue from the sale of uranium oxide totaled A$268 million in 2016, down from A$333 million a year ago, due to reduced sales prices and volumes.

The company sold 2,139 tonnes of uranium oxide in 2016 at an average realized price of US$41.87 per pound, compared to sales of 2,183 tonnes at US$51.99 per pound in 2015.

In 2017, Energy Resources expects to produce 2,000 tonnes to 2,400 tonnes of uranium. Sales of uranium oxide are anticipated to be in line with production.

Meanwhile, Energy Resources' proved and probable ore reserves for its Ranger mine in Northern Territory, Australia, decreased from 10,383 tonnes of uranium oxide to 8,081 tonnes during 2016, mainly as a result of depletion.

The mineral resources at Ranger decreased from 56,149 tonnes to 55,971 tonnes of uranium oxide due to mining depletion of low-grade stocks below the reserve cutoff, Energy Resources said separately.

At the Jabiluka mine, the ore reserves were written back to mineral resources in accordance with the JORC 2012 code for the Dec. 31, 2015, ore reserves and mineral resources statement.

The 2016 mineral resources statement for Jabiluka remains unchanged at 137,107 tonnes of uranium oxide.