MMX registers R$ 848 million loss in 2008, may be sold

Early this week Brazil’s MMX Mineração announced its 2008 results, registering losses of R$ 848.8 million (about US$ 400 million), a giant fall compared to the R$ 765 million-profit registered in the year 2007. The company says about 60% of the bad performance came in the last quarter of the year when the losses peaked at R$ 507.2 million due to the falling demand and the depreciation of real in face of dollar.

The company says that, aiming to reduce its exposition to currency issues provoked by the investments program, MMX hired hedge instruments that, associated to the currency changed, is the main reason of the growing expenses.

At the same time rumor has that MMX owner, Brazilian mogul Eike Batista, was interested in selling the company, and markets began to gossip about who would be the potential owners. MMX made clear on Wednesday it was hiring a bank to lead the selling process, and the company stocks at Bovespa jumped more than 10% in the same day.