PERTH (miningweekly.com) – Iron-ore junior Mount Gibson on Thursday said that it was on track to meet its full-year sales target, despite the March quarter being affected by weather interruptions.

During the three months to March, Mount Gibson sold some two-million tonnes of ore, compared with the 2.49-million tonnes sold in the previous quarter.

“Mount Gibson continued to perform strongly in the March quarter in the face of significant seasonal weather-related impacts at Koolan Island and substantial volatility in iron-ore prices, resulting in a record period cash reserve of A$497-million,” said Mount Gibson CEO Jim Beyer.

The decrease in production was ascribed to weather-related disruptions at the Koolan Island operation, which resulted in a 19% decline in total tonnes of ore shipped, compared with the previous quarter.

Ore shipments from the Koolan Island operation reached 493 000 t during the three months under review, with some 82 000 t of direct shipping ore stockpiled at the end of the quarter.

The Tallering Peak operation continued to perform strongly, and some 820 000 t of ore was shipped during the quarter, including 403 000 t of standard lump and fines product and 417 000 t of lower-grade lump ore drawn from stockpiles.

The Extension Hill operation shipped 709 000 t during the quarter, which was a 6% increase on the previous quarter, and consisted of 354 000 t of lump product and 355 t of fines product.

Beyer noted that despite the short-term impact of the weather, the company was on track to achieve its full-year sales target of 9.5-million tonnes during the full year, and has enhanced its future production potential in the Mid West with the acquisition of the Shine project, and further exploration at Extension Hill.

“These developments, together with our robust balance sheet and continuing focus on cost reductions, put Mount Gibson in an extremely strong position to continue to generate additional value for shareholders and navigate volatile market conditions,” he added.