PERTH (miningweekly.com) – Record quarterly concentrate sales have assisted ASX-listed Northern Iron in offsetting the declining iron-ore price.
Concentrate production during the quarter reached 600 000 t, down from the 626 000 t produced in the previous three months. However, mine production reached 4.4-million tonnes, up 6% on the previous quarter.
The Norway-focused junior on Wednesday reported that about 638 000 t of concentrate was sold during the three months to September, a 5% increase on the June quarter. The new quarterly sales record was the second consecutive record set by the company.
Some seven cargoes were sold to Tata Steel during the quarter, and two more to ArcelorMittal.
Northern Iron said that even with the record tonnage realised during the quarter, the high volume of concentrate produced during the quarter contributed to finished inventory stock of 85 000 t at the end of the quarter, compared with a 131 000 t balance at the end of the June quarter.
During the period under review, the average sales price for the concentrate was down by 11% on the previous quarter, with the reduction in realised prices being driven by the decline in iron-ore prices, down 13% on the previous quarter.
Northern Iron would now move to implement cost improvement initiatives in an effort to lower its costs over the next quarter, with the company also saying it would source financial support to improve its working capital position and for the implementation of identified improvement projects to increase production volumes and lower unit costs.