Mount Gibson Iron's Half-Year Financial Result

Mount Gibson Iron Limited (ASX: $MGX) has reported a record high grade iron ore sales of 2.5 million wet metric tonnes (Mwmt) grading 65.4% Fe for net sales revenue of $432.0 million Free on Board (FOB) in the half-year to 31 December 2023. The company's net profit after tax surged to $138.7 million, reflecting continued strong operational improvement and record sales from Koolan Island in the reporting period. Mount Gibson also saw an increase in cash and investment reserves to $358.5 million at 31 December 2023, maintaining guidance for FY24 high grade iron ore sales of 3.8-4.2 Mwmt at an average cash operating cost of $65-70/wmt FOB.

Executive Commentary on Half-Year Results

Mount Gibson's Chief Executive Officer, Peter Kerr, highlighted the solid operating performance at the high grade Koolan Island mine, resulting in record six-monthly shipments and rapid rebuilding of cash and investment reserves. Kerr emphasized the substantial investments made at Koolan Island over the last few years, positioning the operation well in the current favorable iron ore price environment. He also expressed confidence in the technical and economic strength of Koolan Island, enabling Mount Gibson to pursue future resources investment opportunities.

Summary of Half-Year Financial Result

Mount Gibson Iron's half-year financial result reflects a robust performance with record high grade iron ore sales, significant increase in net profit after tax, and a substantial rise in cash and investment reserves. The company maintained its guidance for FY24 high grade iron ore sales and average cash operating cost, indicating a positive outlook for the upcoming financial year. Mount Gibson's focus on operational improvement and strategic investments, particularly at the Koolan Island mine, has positioned the company for further cashflow generation and potential future resource investments. The company's commitment to considering the payment of a dividend in August 2024 reflects its strong financial performance and prudent approach to shareholder returns.