Mount Gibson Iron Releases Financial Year Results

Mount Gibson Iron (ASX:MGX) has released its financial results for the 17/18 year, detailing a net profit results of AU$99.1 million.

As highlighted in the press release:

• Total iron ore sales of 3.6 million wet metric tonnes (2016/17: 3.2 Mwmt).
• Sales revenue of AU$254.1 million on a Cost and Freight (CFR) basis (2016/17: AU$182.7m), equivalent to AU$196.5 million (2016/17: AU$162.0m) on a Free on Board (FOB) basis after shipping freight.
• Gross profit from continuing operations of AU$48.7 million before tax (2016/17: AU$36.5m).
• Net profit after tax of AU$99.1 million (2016/17: AU$26.3m) including Koolan Island business interruption insurance proceeds of AU$64.3 million.
• Cash, term deposits and liquid investments of AU$457.5 million at 30 June 2018, an increase of AU$10.8 million over the year, after Koolan Island Restart Project expenditure of AU$81.7 million and receipt of business interruption insurance settlement proceeds.
• All-in group cash costs reduced by 13 percent to AU$45/wmt FOB (2016/17: $52/wmt).
• High grade Koolan Island Restart Project on track for first ore sales in the March 2019 quarter, with the seepage barrier completed and dewatering underway.
• Koolan Ore Reserves increased by over 50% to 21Mt @ 65.5% Fe, extending mine life to 2023.
• Iron Hill mining on track for scheduled completion in late 2018, ore sales to conclude in early 2019.
• Right earned to a future income stream based on third party rail volumes, commencing on completion of current rail contract and capped at approximately AU$35 million.
• Fully franked final dividend of 3 cents per share, payable either in cash or in shares to eligible shareholders as part of the Company’s Dividend Reinvestment Plan.
• Sales guidance for 2018-19 of 2.7-3.3 Mwmt at all-in group cash cost of AU$52-57/wmt FOB.

Click here to read the full Mount Gibson Iron (ASX:MGX) press release.