23/08/2013 - 11:15

Mt Gibson bullish despite profit drop

23/08/2013 - 11:15

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Mt Gibson bullish despite profit drop
Mount Gibson's Tallering Peak iron ore operation in the Mid West.

Mount Gibson Iron says it is targeting higher sales volumes over the next financial year, but a record revenue result was not able to halt a dip in profit due to challenging conditions in the iron ore sector.

The iron ore junior today announced a net profit of $157.3 million for the year to June 30, down from $162 million in FY2012.

The result included a $64.5 million non-cash accounting tax credit relating to accounting requirements for the federal government’s minerals resource rent tax (MRRT).

Mount Gibson’s underlying net profit was $92.9 million, although its profit from continuing operations was down 42.8 per cent, to $128.4 million.

Sales revenue came in at $852.9 million, up from $648.5 million in the previous 12 months.

The company will pay a final dividend of 2 cents per share, taking its full-year dividend to 4 cents per share.

Chief executive Jim Beyer said while the company’s net profit result only told part of the story, it was nonetheless a strong performance in difficult conditions for iron ore miners.

“Our diligent focus on getting the most out of our assets has enabled us to target even higher sales volumes this financial year,” Mr Beyer said in a statement.

“Also, we are confident of adding to the $50 million in permanent ongoing savings already delivered.

“While iron ore prices remain volatile, the general outlook for established Australian dollar denominated producers such as Mount Gibson is fundamentally positive.”

At 11:00AM, WST, Mount Gibson shares were steady at 69 cents. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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