The West

Mt Gibson lifts underlying profit 27pc

UPDATE 2.30pm: Mt Gibson Iron has increased its underlying full-year profit by 27 per cent to $117.7 million.

Its bottom-line net profit of $96.4 million included a $21.3 million non-cash tax accounting charge related to the Minerals Resources Rent Tax.

The result was achieved on revenue of $898 million, up 5 per cent on the previous year on the back of record iron ore sales of 9.7 million wet metric tonnes, compared with 8.8 million wet metric tonnes the previous year.

The Chinese-controlled iron ore miner declared a fully franked final dividend of four cents a share in line with last year.

The company increased cash and term deposits by $143.8 million to $519.8 million over the period.

Chief executive Jim Beyer said once again, Mount Gibson's ongoing focus on cost reduction and business optimisation had delivered outstanding operating and financial results in volatile conditions which saw prices decline sharply in the second half of the year.

"These results were also achieved whilst ramping up production at our Koolan Island operation, concluding operations at our Tallering Peak mine in the Mid West after ten years, and expanding our exploration and potential development footprint in the Mid West," he said.

"With costs and production at Koolan Island tracking in line with our guidance, rising delivered ore grades, and a strong balance sheet, Mount Gibson is well positioned to deliver continued strong performance and is well prepared for future volatility in iron ore prices and market conditions.

"We also retain the capacity to invest in value accretive growth opportunities that may emerge."

Mt Gibson own and operate mines at Tallering Peak and Extension Hill in the State's Mid-West and Koolan Island in the Kimberley.

Shares in Mt Gibson were up half a cent to 75.5 cents at the close of trade.

The West Australian

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