PERTH (miningweekly.com) – Iron-ore miner Mount Gibson has reported solid results during the three months to September, despite the significant fall in iron-ore prices during the quarter.
The miner on Tuesday reported total ore sales of 1.86-million tonnes during the quarter, compared with the 2.6-million tonnes sold in the quarter ended June. The sales generated revenue of A$117-million, compared with A$194-million in the June quarter.
CEO Jim Beyer told shareholders that the company had been partially buffered against the sharp iron-ore price decline during the period, by the comparatively high grade and quality of its product mix.
“While conditions remain challenging, Koolan Island productivity and mining costs continue to improve at a rapid rate, giving us great confidence that our investment in new fleet and waste stripping over the next couple of years will position Koolan Island to become one of Australia’s lowest cash cost operations thereafter.”
Beyer added that the Extension Hill mine continued to generate steady production and positive cash flow.
“These factors together with our ongoing business improvement programme, high-grade ore reserves, product mix and strong balance sheet, leave Mount Gibson well positioned to both navigate the volatile conditions and pursue value accretive growth opportunities.”
Mount Gibson expects to meet its full-year sales guidance of between 6.6-million and 7-million tonnes.
In line with expectations, the Tallering Peak operation was closed in September following the depletion of its ore reserve. Four shipments of direct shipping ore material were made from Tallering Peak during the quarter under review.
The cessation of low-grade sales from Tallering Peak, and the completion of Rizhao special product sales from Koolan Island in October this year, were expected to significantly improve the delivered ore grade and quality profile, and Mount Gibson was expected to achieve a weighted average sales grade of around 61% iron in the 2015 financial year.