Mount Gibson posts strong lift in FY iron ore sales

Miner expects further growth in total iron ore sales in FY14.

Mount Gibson Iron Ltd posted a sharp rise in full-year total iron ore sales and remains confident of further sales growth in the coming year.

In the year to June 30, Mount Gibson's total iron ore sales jumped to 8.771 million wet metric tonnes (Mwmt), 68.3% higher than the 5.212 Mwmt in the previous corresponding period.

In the June quarter, total ore sales were 2.3 Mwmt.

The group expects further growth, setting its 2014 financial year guidance for total ore sales at a range of between nine to 9.5 million tonnes.

The miner's sales included 8.1 Mwmt of direct shipping ore (DSO) hematite in the 2013 financial year, 54.7% higher than the previous corresponding period and consistent with guidance of 8.0 to 8.5 million tonnes.

In the June quarter, the company sold 2.1 Mwmt of DSO.

Total sales also include record full-year Mid West sales of 5.3 Mwmt and full-year Koolan Island ore sales of 3.5 Mwmt.

The group is reducing Koolan unit mining costs in line with guidance, while labour productivity there doubled since December with increasing volumes.

The company's strong performance "provided a substantial buffer against the volatile market conditions which prevailed during the period," chief executive Jim Beyer said.

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