Mongolia Energy Corp., 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.