In the three months to March 31, Mount Gibson (MGX) sold 1.07 million wet metric tonnes (mwmt) of iron ore, slightly less than the 1.24 mwmt it sold in the December quarter and well below the 2.02 mwmt it sold in the previous corresponding quarter.
The junior miner says it remains on track to meet its full-year sales guidance of between 4.8 mwmt and 5.2 mwmt.
In the quarter, Mount Gibson achieved iron ore sales revenue of $60 million free on board (FOB), based on the average realised price of $US47 per dry metric tonne for its Extension Hill fines.
At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US53.80 a tonne, according to numbers from The Steel Index, up 1.7 per cent from its prior close of $US52.90 a tonne.
The commodity’s best two-week streak this year has seen it soar 15 per cent from the 10-year low of $US46.70 a tonne it reached earlier in the month and has led it to its highest mark since March 27.
Mount Gibson chief executive Jim Beyer said the company continued to focus on capital preservation and cost reduction initiatives during the quarter as iron ore prices dropped to their lowest point since the global financial crisis.
“This disciplined approach has helped the company retain a strong financial position with substantial cash reserves and negligible debt, and in doing so maintain significant flexibility to adapt to the extremely challenging conditions,” he said.
Mr Beyer said in light of the sustained volatility in conditions, Mount Gibson is closely monitoring the situation and pursuing further efficiency and cost-saving initiatives.
“Accordingly, we continue to align staffing with our changing organisational requirements, most notably the completion of the limited satellite mining campaign at Koolan Island,” he said.
“All exploration activity, other than minor work related to approvals for Extension Hill South, has also been suspended.”
During the quarter the company reduced its total headcount by 19 per cent — 67 positions — across the business, which included a 33 per cent reduction in corporate office staffing.
source: http://www.theaustralian.com.au