In a regulatory filing Monday, Rio de Janeiro, Brazil-based iron ore mining and logistics company MMX Mineracao & Metalicos SA reported a net loss of 243.2 million reais (US$139.2 million)in Q3 2011, down significantly from net income of 88.4 million reais a year earlier. MMX attributed the loss to a 318.1 million reais (US$183.8 million) financial expense as the Brazilian real depreciated 17 percent in Q3.
Despite the loss, MMX's iron ore increased 20 percent year-on-year in Q3 to a record 2.11 million metric tons (mt). Iron ore production increased 1 percent during the quarter to 1.91 million mt.
MMX isn't the only Brazilian miner that suffered a blow to profits in Q3 as a result of weaker currency. SteelOrbis previously reported that on October 26, Vale also experienced a decline in profits during the Q3 because of currency-related costs.