But it asserts that it's still well-funded.
According to an HKEx release, the board of directors of Winsway Coking Coal Holdings Limited announced that company is expected to record a consolidated loss for the ﬁnancial year ended 31 December 2012 as compared to a consolidated proﬁt recorded for the ﬁnancial year ended 31 December 2011.
The performance is primarily attributable to:
1. a decrease in the price of and a fall in demand for coking coal in the Company’s principal market, the People’s Republic of China, in 2012 as a result of a decline in demand from steel mills and coke plants under sluggish economic conditions;
2. an increase in the Group’s ﬁnance costs due to the issue of senior notes in April 2011; and
3. an increase in the Group’s ﬁnance costs and transaction expenses due to the acquisition of Grand Cache Coal Corporation in March 2012.
Whilst the above factors have impacted the ﬁnancial results of the Company for the ﬁnancial year ended 31 December 2012, the Board continues to believe that Company is currently well funded with strong cash position and the business operations and ﬁ nancial position of the Group remain sound.
The company is still in the process of ﬁnalizing the annual results of the group for the ﬁnancial year ended 31 December 2012. The information contained in this announcement is based on a preliminary assessment by the Board solely on the basis of the unaudited consolidated management accounts of the group and the current information available, which have not yet been reviewed nor audited by the independent external auditors of the company.
Further details of theperformance will be disclosed in the annual results for the ﬁnancial year ended 31 December 2012 to be published by the company.
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