PERTH (miningweekly.com) – Iron-ore miner Mount Gibson has reported a solid quarter in the three months to December, with iron-ore sales remaining consistent with the previous quarter.
Iron-ore sales for the December quarter reached 1.3-million tonnes, consistent with the 1.3-million tonnes sold in the September quarter, consisting of 773 000 t of direct shipping ore product and a further 649 000 t of low-grade ore.
Mount Gibson noted that the Koolan Island operation continued its ramp-up during the quarter under review, with the project generating positive cashflows of A$21-million before downward provisional pricing adjustments of A$10-million, reflecting the lower iron-ore prices relative to the previous quarter.
“Mount Gibson has reported another steady quarter of operating cashflows, in which shipments of high-grade Koolan Island ores increased,” said CEO Peter Kerr.
“Importantly, we achieved our target of four shipments per month from Koolan Island in both November and December, which underpinned our group operating cashflow of A$14-million for the quarter.
“Our Mid-West low-grade sales programme also achieved its target and has now been extended well into 2020, resulting in our group ore sales guidance increasing for the 2019/20 financial year.”
Group sales guidance for the full year has increased by around 30%, to between 4.8-million and 5.3-million tonnes, at an unchanged all-in group cash cost of between A$70/t and A$75/t free on board.
“Although cyclone-related heavy rainfall has interrupted mining operations at Koolan Island in January, a degree of wet season interruption is factored into long-range planning and ore sales guidance for Koolan Island remains unchanged for the current quarter.
“Mount Gibson is well placed to deliver on its production targets and benefit from continued positive iron-ore market conditions,” Kerr said.