MMG Ltd., the overseas unit of China’s biggest state-owned metals trader, booked a $784.3 million writedown and swung to a full-year loss amid the collapse in metals prices.
The company posted a loss of $1.05 billion in the year to Dec. 31 from a profit of $99.2 million in 2014 as sales fell 21 percent to $1.95 billion, the Melbourne-based company said on Wednesday. In December, the producer of copper to zinc had flagged it expected a charge of $640 million to $800 million.
Miners are attempting to navigate the rout in commodities by cutting unprofitable output, reducing dividend payments and selling assets and shares to reduce debt. Glencore Plc is seeking to raise as much as $5 billion, while BHP Billiton Ltd. and Rio Tinto Group last month said they would cut their payouts to shareholders.
MMG’s Las Bambas copper mine in Peru began producing this year and the company forecasts output at 250,000 to 300,000 metric tons in 2016, the company said.
The producer led a group that acquired Las Bambas from Glencore in 2014 for $5.85 billion. Chinese companies will continue to buy overseas mining assets as the industry goes through structural changes, He Wenbo, chairman of MMG’s parent China Minmetals Corp., said Sunday.