Mt Gibson reaffirms guidance

Miner posts record H1 iron ore sales, period-end cash reserves for quarter.

Mount Gibson Iron (MGX) has reaffirmed its 2014 full-year guidance after posting record sales in the half-year to December 31 2013.

In a statement to the Australian Securities Exchange, the group said it had sold a record 5.1 million wet metric tonnes (Mwmt) of iron ore in the period.

The miner also said it had record period-end cash reserves for the quarter to December 31 of  $484 million – an increase of $64 million, or 44 cents a share, after dividend and tax payments.

Sales for the December quarter were 2.5 million Mwmt.

Mt Gibson chief executive officer Jim Beyer said the group was on track to achieve its full-year sales target of between nine and 9.5 million tonnes of iron ore "notwithstanding some short-term, rain-related interruptions at Koolan Island".

"The first half of the year has proven to be an excellent one for cash generation, reflecting very strong sales, firm iron ore pricing and our ongoing efforts to increase productivity and reduce costs," Mr Beyer said.

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