24/12/2008 - 10:15

Phosphate Resources posts $62m profit

24/12/2008 - 10:15

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Phosphate Resources has warned it may incur some losses in some of the remaining months of this financial year, as it reports a profit before tax of over $62 million.

Phosphate Resources posts $62m profit

Phosphate Resources has warned it may incur some losses in some of the remaining months of this financial year, as it reports a profit before tax of over $62 million.

In a statement today, the company said its consolidated unaudited profit before tax so far for the 2009 financial year was $62.4 million.

It said the better than anticipated result was on the back of falling fuel and shipping costs and a lower Australian dollar.

"The Board, however, advises that they anticipate that the company may incur losses in some of the remaining months of the financial year," Phosphate Resources said.

"There has been a rapid and major deterioration in demand in the second quarter as a consequence of global financial instability and turmoil leading to recession in large parts of the world and they are unable to yet ascertain when more normal market conditions will be restored."

The company has already taken steps to preserve its cash position, previously announcing that its operation on Christmas Island will be shutdown for six weeks over the New Year.

Employees have been offered leave during the shutdown.

Phosphate had previously advised it had experienced a sharp and marked slowdown in demand from its Asian markets.

Perth company CI Resources has a 38.77 per cent interest in Phosphate Resources, making it the stock's largest shareholder.

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