URANIUM miner Energy Resources of Australia looks set to miss out on the immediate benefits from a surging yellowcake price despite posting record production in the December quarter.

ERA produced a record 1662 tonnes of uranium in the fourth quarter of 2006 from its Ranger mine in the Northern Territory, a 3 per cent increase on the previous fourth quarter in 2005 and a 51 per cent increase on the third quarter of 2006. Shares in the uranium miner surged $1.20, or close to 6 per cent, to $21.46 after yesterday's news.

However, despite its record production quarter, ERA will not be able to take advantage of the surging uranium spot price, as it entered into long-term contracts when the price was weaker.

"ERA's average contractual sales price is only partially influenced by the spot market due to its portfolio of contracts containing a range of pricing mechanisms entered into when the uranium oxide market was considerably weaker," ERA said.

The spot price of uranium was $US72 per pound at the end of December compared with $US36.13 a year earlier.