MMG Posts 48% YoY Fall in 2013 Profit on Lower Copper, Zinc Prices

SHANGHAI, Mar. 12 (SMM) – MMG Ltd. said it remained confident in copper and zinc demand after posting a 48% year-on-year fall in profit last year on lower prices of the metals.

MMG, one of the world’s largest zinc miners and a subsidiary of China Minmetals Corp., made a profit of $122.5 million in 2013 or 1.95 cents per share, it told Hong Kong Stock Exchange today.

``Continued growth in the construction, transportation and infrastructure sectors, especially in the developing economies, will correlate to solid demand for zinc in the medium-to-long term’’ while supply is expected to tighten, it said in an exchange filing.

Chinese production of refined zinc contracted for the first time in 2012 since 1983, leading to its first deficit in four years in 2013, MMG said, adding the long-term look for the galvanizing metal ``will be determined by the ability of miners to offset the impact of scheduled mine closures and growing demand’’.

MMG expects to produce 600,000-625,000 tonnes of zinc and 173,000-186,000 tonnes of copper this year, it said.