Pasminco posts A$715.7 mln 2000/01 loss
au.dailynews.yahoo.com
MELBOURNE, Sept 12 (Reuters) - Debt-laden zinc and lead producer Pasminco Ltd said on Wednesday it plunged to a net loss of A$715.7 million (US$372.2 million) in 2000/01 as falling zinc prices, disastrous currency hedging and hefty writedowns hit the bottom line.
The result included one-off writedowns of A$635 million, partly as a result of the group preparing its balance sheet for the sale of mining assets in an attempt to salvage its smelting business from the companies mounds of debt.
The smelter and miner's loss compares with a net profit of A$23.4 million in 1999/00 and before the one-off's is broadly in line with a warning that its second half loss would be similar to the A$37.3 million loss reported in the first half.
"First of all, the external environment is pretty rough, and what I guess is particularly regrettable is it's got rougher," managing director Greg Gailey told reporters.
Pasminco said lower metal prices reduced earnings by A$208 million, and the adverse impact of currency hedges cut A$130 million.
Still, Pasminco shares rose 0.05 of a cent to 6.1 Australian cents in late afternoon trade, creeping away from its record low close on Tuesday. The group's market value is about A$70 million compared with around A$3 billion four years ago.
DEBT DEALS
The company, which has debt totalling A$2.6 billion, said it was working towards a six month standstill agreement with financiers that would ensure the company's ability to continue.
This was expected to be in place by September 20.
The group said given historically low metal prices and poor market sentiment, it was possible the sale of its mining assets would not generate enough to allow the company to pay debt down to a level the smelting business could support.
Pasminco repeated it would not sell if that was the case.
"There is absolutely no value in converting Pasminco from a debt laden mining and smelting company into a debt laden smelting company," Gailey said.
The group said it expected to have a clearer view of the asset sales programme and the viability of the smelter business by the end of October.
Pasminco said there had been a strong level of interest expressed in the assets, particularly Century, its giant zinc and lead mine in Queensland state, which is in the process of being ramped up to full capacity.
The miner said Century had reached 96 percent capacity. (A$1=US$0.52) |
