Sri Lanka graphite mine hit by forex loss

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(Srilankamirror) – Bogala Graphite Lanka Plc, a mine controlled by Germany’s Graphitewerk Kropfmuhl lost 15 million rupees in the March 2012 quarter, from a year earlier as it was hit by forex loss, interim accounts showed.

The firm reported losses of 32 cents per share.

The firm said it made a 32 million rupee foreign exchange loss on a Euro loan. Sri Lanka’s rupee fell from around 110 to 130 rupees against the US dollar in the March quarter.

The firm said it had unrealized losses of 38.6 million on a 1.6 million Euro loan and realized forex gains on 5.6 million US dollars.

The forex losses on loan can reverse if the rupee strengthens later in the year.

But Bogala graphite is an exporter which gets more rupees for sales and its real wage costs falls following the depreciation.

The firm said revenues rose 29 percent to 136 million rupees in the March quarter and cost of sales rose at a faster 37 percent to 88 million rupees, bit its margins grew 16 percent to 47 million rupees.

(LBO)