Mount Gibson Iron Limited (ASX:MGX) Announces December 2024 Half-Year Financial Results
Financial Performance
Mount Gibson Iron Limited recorded a net loss after tax of $71.7 million for the half-year ended 31 December 2024, compared to a net profit of $138.7 million in the previous period. Sales revenue was $160.3 million FOB from 1.3 million wet metric tonnes of high-grade iron ore. Operating cashflow stood at $21.2 million, with cash and investment reserves of $437.1 million.
Operational Highlights
Operations at Koolan Island transitioned to the eastern half of the Main Pit, positioning the company to achieve its targeted ore sales. Total material movement increased by 51% to 5.1 million wet metric tonnes, while high-grade ore production decreased by 44% to 1.1 million wet metric tonnes. Processing volumes aligned with ore production, and the newly installed tertiary crushing circuit enhanced processing efficiency.
Share Buy-Back
Mount Gibson increased its share buy-back program from 5% to up to 10% of its issued shares. As of 31 December 2024, the company had repurchased 15,295,372 shares at an average price of $0.313 per share.
Executive Comments
CEO Peter Kerr stated, “Mount Gibson delivered a steady underlying financial performance in the first half of the 2024/25 financial year, notwithstanding the effect on our headline result of non-cash accounting impairments to account for recent weakness in iron ore prices and a more volatile market outlook.”
Future Outlook
The company maintains its FY25 iron ore sales guidance of 2.7-3.0 million wet metric tonnes at a targeted cash operating cost of $95-100 per wet metric tonne FOB.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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