This article is 14 years old. Images might not display.
Last week Yanzhou updated its August-released interim report figures as the $US3.16 billion loan for its subsidiary Yancoal Australia lost value.
Yanzhou reported a $243.8 million foreign exchange-related gain as the Australian dollar rose 7.6% against the greenback from December 2009 to the end of last month.
More savings are on the cards, as the Australian dollar amounted to US89.85c at the end of 2009, and briefly reached parity on Friday night.
The Yancoal loan helped prop up the $A3.3 billion takeover of Felix Resources, launched last year and officially completed in January.
Almost a month ago, Mine Life senior resources analyst Gavin Wendt discussed the impacts of the strong Australian dollar while he forecast commodity prices to rise for the rest of 2010.
“If people are positive on commodities, the Aussie dollar will go up,” Wendt told ILN at the time.
“And that’s a negative for our miners but it’s also a positive because it means that if our Aussie dollar is going up, people have faith in mining companies, people have faith in economic growth. It means that the US dollar value of commodities is going to continue to increase.”
