PERTH (miningweekly.com) – Base metals miner MMG has warned shareholders of lower profits for the 2018 financial year, compared with 2017, following a softer second half.
The company on Monday warned that it expected to record a net profit after tax of between $135-million and $140-million for the 2018 financial year, compared with the $348.4-million reported in the 2017 financial year.
The net profit after tax is expected to reach between $65-million and $70-million, compared with the $147.1-million reported in the previous financial year.
For the second half ending December, MMG is expecting to report a net loss after tax of between $50-million and $55-million, and a net loss after tax of between $55-million and $60-million.
MMG told shareholders that the second half of the financial year was impacted by materially lower prices for copper and zinc, compared with the first half of the financial year, with copper prices falling by 11% and zinc prices falling by 21%.
The company was also impacted by higher depreciation and amortization in the second half of the year, driven by higher mining and milling rates at the Las Bambas project, and the accelerated depreciation of certain infrastructure assets associated with advancing the development of Las Bambas.
Copper production in 2018 was also lower than 2017, as anticipated.