Restart at Koolan has Mt Gibson in sweet spot

Original article by Peter Ker
The Australian Financial Review – Page: 20 : 16-Aug-18

Mount Gibson Iron has reported a 2017-18 net profit of $99.1m, with insurance proceeds arising from a seawall collapse at the Koolan Island mine contributing $64m to the result. The mine is expected to resume shipments within six months, more than four years after the incident put production on hold. Mount Gibson will benefit from a strong rise in the premium for higher-grade iron ore in the intervening years; ore with 65.5 per cent iron content such as that produced at Koolan Island is now fetching a premium of around 30 per cent to the benchmark price, compared with 3-5 per cent at the time of the collapse.

CORPORATES
MOUNT GIBSON IRON LIMITED – ASX MGX, VALE SA, KUMBA RESOURCES LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD

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