OOF! Resources investor Zeta falls hard to a $62m loss, blames bad commodity prices
Resources investor Zeta Resources has slumped to a hefty $US44m ($62.4m) loss in the second half of 2018, from a $US15.2m profit a year earlier.
Unfortunately for investors, that again means no dividend.
Zeta has investments in nickel, gold, copper, oil and gas, bauxite, graphite and base metals exploration and production.
Its investments include companies like nickel miner Perth-based Panoramic Resources (ASX:PAN), Canadian copper producer Copper Mountain Mining (ASX:C6C) and Mali-focused gold producer Resolute Mining (ASX:RSG).
The company said that during the six months to the end of December last year, commodity prices were mostly down.
The Brent crude oil price slumped 30.1 per cent, nickel was down 28 per cent, copper was down 10.3 per cent, and the aluminium price was down 13.9 per cent.
On the flipside, gold was up 2.5 per cent.
Zeta’s net assets, meanwhile, slid 35.7 per cent from $US123.9m to $US79.7m.
“This fall exceeded the average fall in the price of commodities due to the leveraged nature of the company,” Zeta said in its directors’ report.
At the end of 2018, the company had $840,685 in cash, and investments worth $124.5m, with investments in subsidiaries valued at $2.9m.
Zeta also collectively owed about $47.5m to its parent company, UIL Limited, its subsidiary and others.
Despite the massive loss, Zeta decided to subscribe for more shares in bauxite developer Alliance Mining Commodities, which has a project in Guinea.
The company stumped up a further $US1.1m to boost its stake to 28.5 per cent post the second half.