Despite posting a loss, it was greatly down from the $121 million loss reported in the six months leading up to June 2011.

The company’s underlying earnings for the half-year ended June 30 tipped in at a loss of $51.5 million, up from a loss of $22.3 million for the previous corresponding period.

Earnings before interest, taxation, depreciation and amortisation totalled $1.2 million, versus a loss of $166.7 million in the first half of 2011.

Revenue from ordinary activities dropped 33% to $163 million, while the sales revenue from uranium oxide was $148 million, down 37% from the same time last year.

ERA attributed the lower revenue to reduced sales volumes, lower average realised sales price and a higher Australian dollar.

Sales volumes totalled 1229 tonnes, down from 1825t in the first half of 2011.

The average realised sales price of uranium oxide for the six month period was $US57.57 per pound, slightly below the $60.82/lb recorded in the previous corresponding period.

ERA said plant performance had continued strongly, with operations optimised for the processing of low grade stockpiled material.

Uranium oxide produced for the period was 1244t, versus 601t in the same time last year.

“In the June 2012 half-year, mining activity primarily focused on the stockpiles as in-pit mining was restricted due to the water levels in Pit 3,” ERA said.

“Following the end of the 2011-12 wet season, dewatering operations proceeded ahead of schedule with full mining access to Pit 3 obtained in late May 2012.”

ERA injected $A15 million on exploration during the half-year, comprising $10 million for the Ranger 3 Deeps exploration decline and $5 million on surface exploration activities.

Looking ahead, the producer said the uranium market would remain challenging in the short term, with utilities well supplied and post-Fukushima uncertainty remaining in the Japanese market.

However, ERA said in the long term, opportunities would arise for established uranium producers.

“Demand in China continues to grow with 26 reactors currently under construction,” ERA said.

“Despite some slower growth in the medium term as China transitions to an increased reliance on improved nuclear power generation technology, it is expected that the country will be one of the largest uranium consumers within the decade.”

ERA expects its 2012 uranium oxide production to be between 3200t and 3700t.

Shares in ERA were down 2% to $1.44.