Photo by: Bloomberg
PERTH (miningweekly.com) – Junior iron-ore miner Mount Gibson has reported a 16% quarter-on-quarter increase in ore sales for the three months to March, as the company’s efforts at Iron Hill, in the Mid West, paid off.
Mount Gibson sold some one-million tonnes of ore during the March quarter, generating free-on-board revenues of A$60-million. This compared with the 841 000 t sold in the December quarter.
“A pleasing operational performance in the Mid West and steady progress at the high-grade Koolan Island restart project, in the Kimberley, have underpinned another healthy result for Mount Gibson in the March quarter,” said CEO Jim Beyer on Thursday.
“Total iron-ore sales rose by 16% quarter-on-quarter, while the Koolan Island restart project progressed to be 57% complete at the end of March, despite several weather related interruptions. Operational cash flow from the Mid West operations remained solid, partially offsetting our ongoing investment at Koolan Island, with cash and liquid investment reserves totalling A$470-million at the end of March.”
Beyer said that the company’s operational focus remained on maximising sales and cash flows from the Iron Hill operation, where mining is scheduled to complete later this year, while also progressing work at Koolan Island, which remains on track to achieve first sales in the March quarter of next year.
“We are also in the final stages of our evaluation of the potential for an extension at the eastern end of the Main pit, and are on schedule to make our final investment decision during the current quarter.”