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- This time of year has shown clear winners and losers when it comes to half yearly round ups
- Independent ore producer Mount Gibson Iron (MGX) is the latest to flaunt impressive results
- For the first half of the Financial Year, Mount Gibson achieved $44.6 million in net profits after tax
- The clear breadwinner for the company was its Koolan Island project, part of a portfolio that produced 2.8 million tonnes of resources
- Shares in the company gained 3.8 per cent on the Australian market on Wednesday, closing at 82 cents per share
Independent ore producer Mount Gibson Iron (MGX) is among other Australian companies this week to post positive half year profits.
Net profits after tax for the iron ore producer reached $44.6 million — just for the half year alone.
Mount Gibson was able to muster 2.8 million tonnes of iron ore sold, a significant increase from last period’s 2.2 million tonnes.
“Mount Gibson has delivered a solid financial result for the half-year, reporting a net profit after tax of $44.6 million while progressing the production ramp-up at the high-grade Koolan Island mine in the Kimberley and extending sales from the Mid-West business,” Chief Executive Peter Kerr said.
“It is satisfying that we continue to generate strong operating cash flows in the ramp-up phase at Koolan Island, during which our waste stripping requirements are at elevated levels.”
Koolan Island is the company’s flagship project, located 140 kilometres north of West Australian town Derby.
“We now have a solid base from which to complete the high-stripping phase at Koolan Island over the next 18 to 24 months, complementing our ongoing focus on safety, operational productivity and cash flow generation,” Peter added.
The Koolan project was first acquired by Mount Gibson in 2007 after a takeover of Aztec Resources. To date, Mount Gibson has shipped out 25 million tonnes of iron ore out of Koolan.
At one point, mining at Koolan was interrupted after a flooding in late 2014. Mount Gibson continued in compromising conditions up until early 2016.
“With a robust balance sheet, Mount Gibson is well placed to continue generating strong financial returns and pursue new growth opportunities,” Peter Kerr concluded on Wednesday.
The financial update from Mount Gibson gave a positive reflection in the Australian market, with its shares boosting 3.8 per cent.
Mount Gibson shares last closed at 82 cents in a $949.2 million market cap.
