Breaking News

Tweet TWEET

Mongolia Energy Slumps to Lowest in Five Years: Hong Kong Mover

Mongolia Energy Corp. (276), a mineral and energy explorer, fell to the lowest level in more than five years in Hong Kong after posting a record full-year net loss.

The shares dropped as much as 15 percent to 35 Hong Kong cents and traded at 35.5 cents as of 11:14 a.m. local time, the lowest level since Feb. 7, 2007. The benchmark Hang Seng Index gained 1.6 percent. Hong Kong’s stock market was closed yesterday for a holiday.

The net loss widened to HK$4.83 billion ($623 million) in the 12 months ended March 31 from HK$310.8 million a year earlier, Mongolia Energy said in a June 29 filing to the Hong Kong stock exchange. The explorer said it accounted for a HK$4.6 billion impairment loss related to its Khushuut coal mine operations in western Mongolia.

Demand for the company’s coking coal in China’s northwestern region of Xinjiang “will likely increase significantly” this year and the “Khushuut mine project will soon be a positive cash-flow contributor to the company,” Mongolia Energy said.

To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.