Key Highlights

  • A review of Pit 3 capping at Ranger extends the forecast capping schedule by approximately 14 months and increases the cost to complete.
  • Further reforecast elements remain under review and could add A$25 million to A$95 million to estimated rehabilitation costs in net present cost terms.
  • Cash and cash equivalents were A$308.6 million at 30 September 2026, with an estimated 5.0 quarters of funding.

Energy Resources of Australia (ASX:ERA) has reported that a review of Pit 3 capping at the Ranger uranium mine site, completed in the September 2026 quarter, extends the forecast capping schedule by approximately 14 months and increases the cost to complete. The company said the change is already included in the rehabilitation provision in its 30 June 2026 accounts, but that further elements of the reforecast remain under review and could add A$25 million to A$95 million to estimated rehabilitation costs in net present cost terms. Pit 3 capping is on the critical path of the closure schedule.

ERA is in closure and rehabilitation rather than production, and reported nil mining, production or development expenditure and nil exploration and evaluation spend. The company said the Tranche 1A reforecast was prompted by changing conditions on the Pit 3 tailings surface, including softer tailings areas. The review covered capping methodology, demolition sequencing, schedule, productivity assumptions, the approvals pathway and execution strategy.

The company said finger-filling capping, implemented after a trial in the second quarter of 2026, is ahead of target. Trials of end tipping, intended for the softest areas, began in August 2026, and implementation requires regulatory approval once they are complete.

Water management and the void

ERA said the capacity of the Pit 3 underfill void is finite, and current modelling indicates it will be full before all process water inventory has been cleared. Studies are under way on void capacity and on improving brine injection concentration, and alternative disposal Options are being examined that, if needed, could change the long-term rehabilitation cost estimate. Brine injection met the quarter's plan but remains below the year-to-date plan. The Brine Squeezer began processing process water, and the company said performance is below target because of pre-treatment constraints, and that fouling and scaling issues are being addressed.

Cash and funding

The September quarter Cash Flow report shows cash and cash equivalents of A$308.6 million at 30 September 2026, up A$12.7 million over the quarter, alongside other financial Assets of A$130 million. Net operating cash outflow was A$62.3 million, including A$66.2 million of rehabilitation payments. Investing inflows of A$75.0 million came from term deposits maturing. ERA reported no Debt and no undrawn facilities, and an estimated 5.0 quarters of funding. The company said planned rehabilitation is funded to approximately the fourth quarter of 2027, a position that does not include the potential A$25 million to A$95 million increase.

Rio Tinto compulsory acquisition

Rio Tinto, which holds more than 98 per cent of ERA's shares, began compulsory Acquisition of the remainder on 11 April 2025. Shareholders holding about 43 per cent of the shares subject to acquisition objected, which exceeded the 10 per cent threshold and meant court approval was required. The Federal Court determined on 5 June 2026 that the acquisition may proceed, with orders that completion occur within 14 days after any appeal is finally determined. Zentree Investments Limited lodged an appeal on 3 July 2026, and the appeal hearing is scheduled for 26 and 27 November 2026. ERA's proceedings over the decision not to renew the Jabiluka mineral Lease are in abeyance pending that appeal.

Other developments

Energy Resources of Australia (ASX:ERA) completed the sale of its 50 per cent participating interest in the Cooper Creek joint venture to Deep Yellow Limited for A$648,000 in September 2026. It also entered a power purchase agreement, with Supply from late 2026. The company reported no recordable injuries.

On governance, Rick Dennis resigned as independent non-executive director and chair effective 16 October 2026, and Stuart Glenn, a director since 2023, was appointed chair. Net payments to related parties were A$3.7 million, mostly commercial services reimbursements to Rio Tinto group companies, which the company said were on arm's length terms. A separate notice showed director Justin Carey's indirect Rio Tinto shareholding under an employee share plan rising from about 663 to about 683 on 19 October 2026.