Mount Gibson Iron anticipates an increase in ore sales from the Koolan Island operation in Western Australia after a strong first quarter this financial year.
The company declared an ore sales guidance of 2.8–3.3 million wet metric tonnes at a cash cost of $60–$65 per wet metric tonne free on board (FOB) for the period.
Mount Gibson chief executive Peter Kerr said the company expected sales from Koolan Island to range between 1.8 and 2.1 million wet metric tonnes this financial year, weighted to the latter part of the June half.
The company is undergoing its stripping phase of the mine, which is set to complete over the next 12–18 months.
During the September quarter, Mount Gibson mined 5.2 million wet metric tonnes of ore and waste at Koolan Island, a 35 per cent increase on the prior quarter.
Half, or 700,000 wet metric tonnes, of the company’s overall iron ore sales came from the Koolan Island operation.
“Mount Gibson has made a positive start to the new financial year with improved quarterly ore production and sales, completion of the new Koolan Island airstrip, ongoing low-grade ore sales in the Mid-West and, recently, declaration of ore reserves for the initial stage of the Shine project,” Kerr said.
“This provides a strong base as we move into the peak phase of waste stripping at Koolan Island to be completed in the next 12–18 months.”
“Once the stripping phase is completed, we expect significantly increased ore sales and cashflow at Koolan Island from early 2022 onwards.”
First flights at Koolan Island are also scheduled for this month thanks to a new certified and commissioned $20 million airstrip.