Mount Gibson reports record iron ore sales

Iron ore miner Mount Gibson Iron has reported its second best quarterly sales figures in the June 2013 quarter, and record full year sales, despite a decline in production.

June quarter iron ore sales for the company totalled 2.3 millon tonnes, making for a total of 8.8 mt sold for the year.

The results come despite a decline in production across two of Mount Gibson's three projects in the June quarter.

Koolan Island took the biggest production fall, with output of 134,000 tonnes for the quarter compared to 460,000 tonnes in the March previous.

Tallering Peak's drop was smaller, mining 445,000 tonnes for the June quarter compared to 517,000 tonnes previously.

Extension Hill was the only Mount Gibson project to increase ore mined going from 317,000 tonnes in the March quarter to 370,000 tonnes in the June quarter.

Mount Gibson stated that its ongoing cost reduction program was on track and that is was planning to increase mine output.

"The record performance of our Mid West operations was particularly pleasing, offsetting an anticipated temporary dip in ore production at Koolan Island as we commenced our mining ramp up to achieve 4 million tonnes per annum by the end of next year."

Mount Gibson also forecast an increase in the amount ore it will sell this financial year.

"This demonstrates the merits of our 'portfolio management' approach to operating our business, and gives us confidence we can increase sales to 9.0 to 9.5 million tonnes this year," 

Mount Gibson shares remained flat at 57 cents.