H1 PROFIT FOR AUSTRALIA'S MIM DEPENDS ON METAL PRICE INCREASE.

BRISBANE, Nov 1 Asia Pulse - Metal prices would need to improve if diversified miner MIM Holdings Ltd (ASX:MIM) is to make a first half profit this year.

The company's share price fell more than seven per cent yesterday, and a whopping 27.7 million shares passed through the company's register.

Its share price dropped nine cents to A$1.14 (US$0.63).

MIM said its lead-zinc mining operations were not profitable at the current 15-year low price environment and the zinc smelters were expected to incur total losses after tax of about A$50 million for first half.

Managing director Vince Gauci said MIM was fundamentally in extremely good shape, but had one remaining asset yet to dispose of: its loss-making Avonmouth zinc smelter in England.

Mr Gauci said the company would struggle to make a profit in the first half unless metal prices improved, even before it booked a loss of around A$68 million from the sale of its German Duisburg zinc smelter.

In the previous first half, MIM booked a net profit of A$21 million.