Mount Gibson records $140m H1 profit

Mount Gibson Iron has announced a first half profit of $140 million, despite experiencing a fall in output.

Mount Gibson managing director Luke Tonkin said high iron ore prices and continued strong sales had pushed net profit after tax to $140 million, even after a 15 per cent fall in output from its Western Australian mines.

Mount Gibson recorded a profit of $39.4 million in the previous corresponding period.

During the first half of FY2011, Mount Gibson mined approximately 3.13 million tonnes of ore, compared with 3.6 million tonnes the previous period.

But tonnes sold during the half increased to 3.24 million tonnes, up from 3.1 million tonnes in the previous period, increasing sales revenue to $382 million from $294 million.

"The strong half year result reflected record iron ore sales revenue resulting from strong sales volumes from our operations and strengthening iron ore prices," Mr Tonkin said in a statement to the ASX.

"Pleasing too, was the significant progress made at Extension Hill, the reduction in Mount Gibson's debt and the strong cash generation of the business."