Loss after copper producer CuDeco finally posts half-year results, shares still on hold

EMBATTLED copper producer CuDeco posted a net half-year loss of $18.3 million.

CuDeco's Rockands processing plant. The embattled company finally posted its half-year accounts after repaying debt to a Chinese bank.

EMBATTLED copper producer CuDeco posted a net half-year loss of $18.3 million.

This compared with a net loss of $25.2 million for the previous corresponding period.

CuDeco finally lodged its financial accounts for the six months to December 31.

Its shares have been suspended from trade and it has been unable to lodge its financial accounts while it sought financing to repay its debt to a Chinese bank.

CuDeco owes $US60 million to Minsheng Bank, payable in four quarterly payments of $US15 million through to the December quarter 2017.

The company last month secured last-ditch Chinese funding to raise $22 ($US15 million) million through the issue of a convertible note.

The funds were to be used solely to repay its bank debt.

The loan was due to be repaid on March 31.

CuDeco said it made the first $US15 million payment to Minsheng Bank on April 21.

It has now awarded a mining contract to a Bendigo-based mining contractor and mining re started on March 15.

CuDeco said its $18.3 million half-year loss included $15.5 million of non-cash depreciation and amortisation.

It also was hit by a $1.2 million foreign exchange loss due to currency movements in its loan facility which is denominated in US dollars.

CuDeco said it has chosen not to hedge the loan against foreign currency movements

because future copper sales will be denominated in US dollars “providing a natural hedge to the loan”.

Trouble-plagued CuDeco has been battling a string of corporate and financial headaches.

It was ordered to shut down its Rocklands processing facility after failing a safety audit and suffered turmoil at the top with a string of management changes.

It lost its managing director Dianmin Chen, chairman Noel White and general manager Mark Roberts, who left in February.

CuDeco has since appointed Peter Hutchison as interim chairman and it has a new CEO, COO and general manager.

Its shares, which hit a high of 75¢ this year, last traded at 36.5¢.