PERTH (miningweekly.com) – Junior miner Mount Gibson Iron has reported higher revenues for the first half of 2020, on the back of increased iron-ore production.

Mount Gibson on Wednesday reported that iron-ore sales for the six months to December had reached 2.8-million tonnes, up from the 2.2-million tonnes produced in the previous corresponding period, consisting of 1.4-million tonnes of high grade direct shipping ore and 1.4-million tonnes of low grade material.

Iron-ore sales revenue for the interim period increased to A$230.1-million, up from the A$138.6-million in the first half of 2019, while net profits after tax declined from A$45.1-million to A$44.6-million in the same period.

“Mount Gibson delivered a solid financial result for the half-year, reporting a net profit after tax of A$44.6-million while progressing the production ramp-up at the high-grade Koolan Island mine in the Kimberley, and extending sales from the Mid West business,” said CEO Peter Kerr.

“It is satisfying that we continue to generate strong operating cashflows in the ramp-up phase at Koolan Island, during which our waste stripping requirements are at elevated levels. This underlines the good timing of the Koolan Island restart, given the well-supported iron-ore prices we continue to enjoy.

“We now have a solid base from which to complete the high stripping phase at Koolan Island over the next 18 to 24 months, complementing our ongoing focus on safety, operational productivity and cashflow generation.

“The success of the extended programme of opportunistic sales of low grade material from the Extension Hill mine has been important, enabling the site to continue making a positive contribution well beyond its originally planned closure date.”

Kerr said that with a robust balance sheet, Mount Gibson was well placed to continue generating strong financial returns, and to pursue new growth opportunities.