PERTH (miningweekly.com) – Junior miner Mount Gibson has reported another steady quarter of iron sales during the June quarter, with one-million tonnes sold for revenues of A$45-million.

“It was pleasing to complete the financial year with another solid operational effort in the Mid West and excellent progress at our high-grade Koolan Island restart project, in the Kimberley,” said Mount Gibson CEO Jim Beyer.

“Total iron-ore sales remained steady at the quarter, resulting in full year sales in the middle of our guidance range at just over 3.6-million tonnes, while all-in cash costs for the year were at the bottom-end of the guidance at A$45/t free-on-board.”

The full year iron-ore sales of 3.6-million tonnes generated revenues of A$192-million in the full year.

Beyer said that operational cash flow from the Mid West operations remained solid, partially offsetting the company’s ongoing investment at Koolan Island, with cash and liquid investment reserves totalling A$457-million at the end of June.

The Extension Hill operation, in the Mid West, continues to run at full capacity, and mining is on track for completion in late 2018. Ore sales from Iron Hill will be concluded in early 2019, after which the site will move to closure, as planned.

Meanwhile, site activity at Koolan Island progressed during the period, with the project 74% complete at the end of the quarter. Activity during the period under review was focused on the final stages of seepage barrier construction and preparations for footwall refurbishment and dewatering.

Some A$26-million was spent on Koolan Island during the quarter, including A$3-million of preproduction expenditure and A$2-million for equipment purchase. In the financial year, Mount Gibson spent A$83-million on the restart project, in line with guidance.

Since expenditure on the project started in May last year, Mount Gibson has invested some A$88-million in the project.

The project is on track to achieve its first ore sales in the March quarter of 2019.

“With mining at our Mid West business on track for completion later this year, and sales to finish shortly ahead of the first shipment from Koolan Island, Mount Gibson is well placed to capitalise on the structural changes in iron-ore pricing, which rewards high grade products and penalizes lesser quality material,” Beyer said.

“This puts Mount Gibson in an enviable position to generate strong cash flow and create value for our shareholders well into the next decade.”