16/10/2013 - 10:07

Mount Gibson boosts sales, productivity

16/10/2013 - 10:07

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Shares in Mount Gibson Iron have risen on the back of a 13 per cent quarterly increase in iron ore sales.

Mount Gibson boosts sales, productivity
Mount Gibson's Tallering Peak iron ore operation in the Mid West.

Shares in Mount Gibson Iron have risen on the back of a 13 per cent quarterly increase in iron ore sales.

Mount Gibson sold 2.6 million wet metric tonnes of iron ore for the September quarter, compared to 2.3mt in the June quarter.

This represents the strongest sales performance for the miner since it sold a record 2.7mt in the December quarter of 2012.

Mount Gibson chief executive Jim Beyer said the results put the miner on track to achieve its forecast total ore sales of between 9mt and 9.5mt in the 2014 financial 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 strong record of cash generation," he said.

Mount Gibson's average realised fines price for the quarter was $US108 per dry metric tonne, which is an improvement on the $US96/t recorded in the December 2012 quarter but still lower than the $US117/t it achieved in the March 2013 quarter.

The company has focused on improving productivity in the wake of a slight annual profit drop, with the average total tonnes moved per man hour at its Koolan Island project in the September quarter around 25 per cent higher than the average for the June quarter.

Shares in Mount Gibson closed the day 6.5 per cent higher at 82 cents.

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