Insurance lifts Mount Gibson

MOUNT Gibson Iron generated an A$80 million net profit after tax from its Mid West operations for the December half, largely thanks to a windfall of $64.3 million from the proceeds of the Koolan Island business interruption insurance settlement, bringing the total payout to around $150 million.

Insurance lifts Mount Gibson Insurance lifts Mount Gibson Insurance lifts Mount Gibson Insurance lifts Mount Gibson Insurance lifts Mount Gibson

The underlying business retreated a little, with the operations generating $15.7 million, down from $22.9 million in the December half of 2016-17, largely due to falling market demand for lower grades of iron ore but gross profit was relatively stable despite falling from $24.2 million to $23.1 million.

Total sales, including low grade material from Extension Hill stockpiles, was 1.7 million wet tonnes, off just 100,000t from the year prior, and after banking the insurance payment cash rose $31 million, increasing cash, term deposits and liquid investments to $477 million at December 31.

Revenue was $90 million.

“The team has delivered … and the numbers are healthy,” CEO Jim Beyer said this morning, describing the miner as a company in transition from its Mid West o...