Owners of Dugald River mine MMG Limited is warning of a big loss for the second half of 2018 after being thumped by weaker copper and zinc prices.
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Hong Kong and Australian-listed MMG issued a profit warning on Monday though Dugald River was not explicitly mentioned in the warning.
It said it expected to report net profit after tax for the year to December 31 of about $US135-140 million, be well down from NPAT of $US348.4 million for 2017.
MMG said it expected to report a net after tax loss of $US50-55 million for the second half of 2018.
MMG said copper prices were 11 per cent lower in the second half of 2018 compared to the first half, and zinc prices were down by 21 per cent.
It said other factors in the result included higher depreciation and amortisation in the second half, driven by higher mining and milling rates at its copper operations in Peru plus plus accelerated depreciation of Peruvian assets, higher interest costs in the second half, a reduction in expected copper production for the full year, and a higher than anticipated effective tax rate.
MMG is set to release its December quarter production results on Friday.
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
