Mt Gibson to pay dividend

Iron ore miner Mount Gibson Iron will pay its first dividend to shareholders since 2014, after reporting a $26.3 million net profit for the 2017 financial year.

Perth-based Mt Gibson’s net profit result was lower against its $86.3 million profit in FY16, however nearly all of that year’s result came from an insurance payout for the seawall collapse at the miner’s Koolan Island operation in 2014.

Mt Gibson delivered $173.1 million in revenue for FY17, down from $240.5 million in FY16.

But the miner also declared a 2 cents per share final dividend, equal to $21.9 million.

It is the first time Mt Gibson has returned a payout to shareholders since 2014, before the seawall incident.

“This performance, together with the $64.3 million settlement of our business interruption insurance claim in July, puts the company in a strong position heading into the new financial year, as we ramp up production and sales from Iron Hill and progress our high grade Koolan Island restart project,” Mt Gibson chief executive Jim Beyer said.

“It’s very pleasing to reflect this financial performance in the payment of a fully franked final dividend of 2 cents per share.

“Underpinned by our ongoing commitment to financial and operational discipline, Mt Gibson has strong prospects ahead of it with Iron Hill now fully operational, development under way to restart Koolan Island, and the financial capacity to act on additional value-creation opportunities that may emerge.”

Shares in Mt Gibson were 5.1 per cent lower to 42.7 cents each at 11:30am.