Junior iron-ore miner Mount Gibson has reported an increase in iron-ore sales for the quarter ended September, with sales revenue increasing by some A$20-million over the previous quarter.
Quarterly sales for the three months to September reached 1.1-million tonnes, compared with the 963 000 t sold over the previous quarter, with revenue increasing from A$45-million to A$65-million over the same period, on the back of higher prices.
“Mount Gibson has made a strong start to the new financial year, with a substantial increase in sales volumes from Iron Hill in the Mid West and continued good progress at the high-grade Koolan Island restart project in the Kimberley, which remains on track to commence ore sales by the end of the March 2019 quarter,” said Mt Gibson CEO Peter Kerr.
“Total iron-ore sales rose 19% to just over 1.1-million tonnes in the September quarter, consistent with our annual guidance range, with Mid West cash costs for the quarter below guidance at A$37/t free on board. Operational cash flow from the Mid West remained solid at A$18-million, helping to offset our ongoing investment at Koolan Island, with cash and liquid investment reserves totalling A$452-million at the end of September.”
Ore sales from Iron Hill are expected to conclude in early 2019, after which the site will move into closure, as planned.
Mt Gibson is expected to spend some A$15-million on closure and rehabilitation at the combined Extension Hill and Iron Hill mine sites, with A$8-million to be spent during 2018/19, starting in the December quarter of this year.