Mount Gibson Iron will issue its first dividend to shareholders after booking a net profit of $239.5 million for financial year 2010-11, an increase of 81 per cent on the previous year’s results.
Mount Gibson lodged sales revenue of $672.1 million, up 25 per cent on 2009-10, to drive the result.
It will pay a 4 cents per share dividend to shareholders by September 9.
The company is currently developing the Extension Hill iron ore deposit, located in the Mount Gibson ranges 260 kilometres east of Geraldton.
Mining at Extension Hill commenced during the March quarter, and for the year to June 30, the company produced 100,000 cubic metres of iron ore from the project.
Mount Gibson also operates iron ore projects at Tallering Peak and Koolan Island.
For the year to June 30, Mount Gibson mined 610,000 cubic metres of ore from Tallering Peak, down from 880,000 cubic metres the previous year.
At Koolan Island, ore production was down 27 per cent on the previous year.
By close of trade today Mount Gibson shares had dropped 2.5 per cent to trade at $1.54.