PERTH (miningweekly.com) – Iron-ore junior Mount Gibson said on Friday that it would achieve its full-year sales target of between 4.8-million tonnes and 5.2-million tonnes, and reported that cash flows would be protected by further cost-cutting initiatives.
“Mount Gibson continued to focus on capital preservation and cost reduction initiatives during the March quarter, as iron-ore prices declined further to their lowest point since the global financial crisis,” said CEO Jim Beyer.
“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.”
During the three months ended March, Mount Gibson continued with its organisational restructuring, with Beyer pointing out that the company’s total headcount had been reduced by 19%, or 67 positions, across the business, during the course of the quarter. This included a 33% reduction in corporate office staffing.
At the end of the March quarter, head office expenditure was reduced by A$1.5-million a month, representing a 40% decline from the monthly average for the December half-year.
Beyer said that the alignment process would continue on the basis of ongoing organisational requirements, most notably as its Koolan Island and Acacia satellite pit mining were completed during the June quarter.
Meanwhile, Mount Gibson on Friday reported that iron-ore sales for the quarter reached 1.1-million tonnes, reflecting continued strong operational performance from the Extension Hill mine, in the Mid West, as well as medium-grade sales from a limited mining campaign at the Acacia East and Koolan Island satellite deposits.
Sales revenue for the quarter reached A$60-million free-on-board, incorporating an average realised fines price for the Extension Hill ore of $47/t.