Brazilian iron ore producer MMX went from a BRL 11.8 million net profit in Q1 2017 to a net loss of nearly BRL 8 million in Q1 this year, the company said, while releasing its quarterly results.
The company, which is currently pursuing bankruptcy, did not further explain the negative result, but added it is in a process of “discontinuity,” meaning it can cease operations, as it depends on the “successful implementation of a bankruptcy recovery plan,” which covers its subsidiary MMX Sudeste.
MMX said it has yet to approve a bankruptcy recovery plan for the holding company as well as for MMX Corumbá Mineração.
MMX reported zero revenues in Q1, which added to the company’s expenses and resulted in the net loss. In Q1 2017, the company reported BRL 4 million operational revenues, which in Q1 this year resulted in a BRL 3.6 million operational expense.
MMX said its net assets are valued at BRL 159.6 million in Q1 this year, down from $168.7 million in Q1 2017.