N$107m profit for Rössing
Uranium miner Rössing is expecting a rough ride ahead as it continues to operate in a low-price environment and excess supply of uranium.
OGONE TLHAGE
Rössing Uranium managing director Werner Duvenhage might not have prepared for brace position as yet, but he is still expecting that the mine will endure tough times in the coming years.
Commenting on Rössing’s financial performance, he was happy to note that the mine was able to turn a profit despite the challenging environment uranium miners found themselves in.
“We produced 1 850 tonnes of uranium oxide compared with 1 245 tonnes in 2015. [This] helped to counter the effects of the lower price on our cash flow. We realised a net profit from normal operations of N$107 million compared with a N$385 million net loss in the previous financial year,” said Duvenhage as he shared some of Rössing’s operational highlights for the past financial year.
Threats to Rössing’s bottom line still lingered, though, with the problem exacerbated by excess supply and slow movement in the Japanese energy sector, Duvenhage said.
“The emergence of additional secondary suppliers and large volumes of new production in 2016, as well as the very slow rate of progress with reactor restarts in Japan, combined to cause the market to fall 50% between January and November 2016,” he said.
According to him, market players had to contend with an average depressed spot price of US$25.64 for 2016.
“Meanwhile, a disadvantage to market prices, the supply of uranium is growing rapidly. Much of this growth can be attributed to the entry of two new mines, namely Cameco’s Cigar Lake and Swakop Uranium’s Husab project. It is still a very challenging time for the uranium production industry as a whole and not just Rössing.”
An uptick in production enabled Rössing to stay afloat.
“Having returned to a four-panel roster and a seven-day operations schedule at the end of 2015, 2016 witnessed an increase in production. We mined a total of 24.4 million tonnes of rock, of which 8 million tonnes were uranium-bearing ore.
“These efforts, combined with our 24-hour, seven-day production schedule, resulted in increased mill throughput and a 48% rise in production in 2016. Our turnover was N$3 billion, up from N$1.8 billion in 2015.
“Looking forward, 2017 will be a defining one in our history and we will be remembered for the trail we are blazing. In line with our expectations, the next few years will be challenging. We are confident that we will not only survive, but thrive in the long term,” Duvenhage said.
Rössing is expected to be in operation until 2025.
Rössing Uranium managing director Werner Duvenhage might not have prepared for brace position as yet, but he is still expecting that the mine will endure tough times in the coming years.
Commenting on Rössing’s financial performance, he was happy to note that the mine was able to turn a profit despite the challenging environment uranium miners found themselves in.
“We produced 1 850 tonnes of uranium oxide compared with 1 245 tonnes in 2015. [This] helped to counter the effects of the lower price on our cash flow. We realised a net profit from normal operations of N$107 million compared with a N$385 million net loss in the previous financial year,” said Duvenhage as he shared some of Rössing’s operational highlights for the past financial year.
Threats to Rössing’s bottom line still lingered, though, with the problem exacerbated by excess supply and slow movement in the Japanese energy sector, Duvenhage said.
“The emergence of additional secondary suppliers and large volumes of new production in 2016, as well as the very slow rate of progress with reactor restarts in Japan, combined to cause the market to fall 50% between January and November 2016,” he said.
According to him, market players had to contend with an average depressed spot price of US$25.64 for 2016.
“Meanwhile, a disadvantage to market prices, the supply of uranium is growing rapidly. Much of this growth can be attributed to the entry of two new mines, namely Cameco’s Cigar Lake and Swakop Uranium’s Husab project. It is still a very challenging time for the uranium production industry as a whole and not just Rössing.”
An uptick in production enabled Rössing to stay afloat.
“Having returned to a four-panel roster and a seven-day operations schedule at the end of 2015, 2016 witnessed an increase in production. We mined a total of 24.4 million tonnes of rock, of which 8 million tonnes were uranium-bearing ore.
“These efforts, combined with our 24-hour, seven-day production schedule, resulted in increased mill throughput and a 48% rise in production in 2016. Our turnover was N$3 billion, up from N$1.8 billion in 2015.
“Looking forward, 2017 will be a defining one in our history and we will be remembered for the trail we are blazing. In line with our expectations, the next few years will be challenging. We are confident that we will not only survive, but thrive in the long term,” Duvenhage said.
Rössing is expected to be in operation until 2025.
Comments
Namibian Sun
No comments have been left on this article