Asset impairments and one-off items totalling $52.2 million substantially impacted Territory Resources' bottom line with the iron ore miner reporting a full-year loss of $71.4 million.
Territory, which placed its shares in a trading halt pending the release of its financial report, said today it was an extraordinary year as its share investment slumped on the back of the global financial crisis and iron ore prices fell from historic highs.
Taking the brunt of the loss was Territory's share investment portfolio, which lost $27.2 million, while total impairments reached $39.2 million.
Foreign exchange losses reached $14.4 million as total one-off items $21.7 million.
Underlying net loss for the miner was $19.2 million, up from the previous year's $4.5 million.
The increase in the underlying net loss was due to a sharp drop in iron ore prices combined with adverse movements in the foreign exchange rate and the impact of the foreign exchange hedge book.
"This financial result is a disappointing and undesirable outcome," chairman Andrew Simpson said.
"However, it is important to consider it in the context not only of the exceptionally difficult trading conditions experienced during the year, but also the Company's prudent approach to managing its balance sheet and dealing appropriately with the last vestiges of the previous diversification strategy."
Total operating revenue jumped from the previous reporting period's $58 million to $114.3 million while production costs more than doubled to $117.8 million.
At the end of the reporting period, Territory had$1.18 million in cash and cash equivalents.
Shares in Territory closed untraded at 22.5 cents today.
