In 2020, revenue was significantly higher than 2019, attributed to a 38 per cent increase in sales volumes, combined with a significant deterioration in the USD/ NAD exchange rate at the start of the COVID-19 global outbreak. The exchange rate remained extremely volatile throughout the year, before returning to pre-pandemic levels in December 2020.
SEVERAL MITIGATING ACTIONS TAKEN TO MAINTAIN OPERATIONS
Several mitigating actions were taken to maintain operations during the year, which included temporary scaled down operations and additional health and safety measures to ensure the health of our employees throughout.
PRODUCTION OF URANIUM OXIDE SLIGHTLY HIGHER THAN THE PREVIOUS YEAR
Production of uranium oxide for the year was 2,489 metric tonnes compared with 2,449 metric tonnes in 2019.
A total of 19.4 million metric tonnes (2019: 22.4 million metric tonnes) were mined from the open pit and 8.7 million metric tonnes (2019: 8 million metric tonnes) of ore were milled.
REDUCED NET PROFIT AFTER TAX FROM NORMAL OPERATIONS
The extreme and sudden devaluation of the Namibia Dollar resulted in significant exchange rate losses, both on prepayments for 2020 sales, as well as the foreign currency hedge derivative, which neutralised the exchange rate benefit from the revenue stream, ultimately resulting in a reduced net profit after tax from normal operations.