Mount Gibson Iron finalises insurance claim for $27 million

Mount Gibson Iron Limited (ASX: $MGX) has announced the finalisation of its business interruption insurance claim for the August 2022 Koolan Island processing plant fire, amounting to $27.3 million. The company expects to receive the proceeds in the September 2024 quarter. This amount is in addition to the $10.4 million received in 2023 for the property damage component of the insurance claim. The processing plant, which suffered fire damage, has been successfully rebuilt, and the recent addition of a tertiary crushing circuit has enhanced processing efficiencies and reduced costs for the production of high-grade iron ore fines products.

Executive Commentary on Insurance Claim Finalisation

The finalisation of the business interruption insurance claim for the Koolan Island processing plant fire is a significant milestone for Mount Gibson Iron. We are pleased to have reached an agreement with our insurers, and the expected receipt of $27.3 million in the upcoming quarter will further strengthen our financial position. The successful rebuilding of the fire-damaged components and the operational enhancements demonstrate our commitment to efficient and sustainable production. We remain focused on delivering value to our stakeholders and maintaining operational resilience. - Peter Kerr, Chief Executive Officer, Mount Gibson Iron Limited

Summary of Business Interruption Insurance Claim Finalisation

Mount Gibson Iron Limited (ASX: $MGX) has finalized the business interruption insurance claim for the August 2022 Koolan Island processing plant fire, securing $27.3 million. This amount, in addition to the $10.4 million received in 2023 for property damage, reflects the company's proactive approach to risk management and recovery. The successful rebuilding of the fire-damaged components and the implementation of a tertiary crushing circuit have bolstered processing efficiencies and reduced associated costs, positioning the company for sustained operational excellence. The expected receipt of the insurance claim proceeds in the upcoming quarter will contribute to the company's financial strength. Mount Gibson Iron remains dedicated to delivering value to its stakeholders and sustaining operational resilience as it continues its strategic growth trajectory.