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Mount Gibson delivers steady results in Sept quarter

16th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Mount Gibson Iron on Wednesday reported its second-best quarterly sales performance during the three months to September, driven by increased operating performances at its mines.

The ASX-listed miner told shareholders that some 2.6-million tonnes of ore were sold during the quarter under review, including 206 000 t of Rizhao special product from the Koolan Island operation.

This sales volume was a 13% increase on the previous quarter, and only marginally lower than the record 2.7-million tonnes sold during the December quarter last year.

“Mount Gibson has made an excellent start to the 2014 financial year, achieving our second-best-ever quarterly sales result, which together with robust iron-ore prices and our ongoing focus on cost reductions, has seen us maintain our record of strong cash generation,” said CEO Jim Beyer.

He noted that it was particularly satisfying to see the continued improvement of the Koolan Island operations, as the ramp-up to four-million tonnes a year gathered momentum.

Production at the Koolan Island mine increased more than six-fold during the quarter under review, to 863 000 t, compared with the June quarter. Ore shipments from the project were also 86% higher than the preceding quarter, totalling 1.07-million tonnes.

At the Mid West operations, the Extension Hill and Tallering Peak mines delivered a combined 1.5-million tonnes of ore, which also represented the second-best quarterly sales performance from these operations.

Ore mining at Extension Hill was up 50% quarter-on-quarter to 552 000 t, while ore mining at Tallering Peak increased by 36% to 605 000 t.

Beyer said that the continued strong performance from the Mid West operations kept Mount Gibson on track to achieve its full-year sales target of between 9-million and 9.5-million tonnes.

Edited by Creamer Media Reporter

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