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Mount Gibson Iron Mount Gibson Iron Limited ABN 87 008 670 817 IAN S Level 1 , 2 Kings Park Road West Perth 6005 , Western Australia PO Box 55 , West Perth WA 6872 Telephone : 61-8-9426-7500 Facsimile : 61-8-9485 2305 E - mail : admin@mtgibsoniron.com.au ASX ANNOUNCEMENT 24 February 2021 December 2020 Half - Year Financial Result Key Points ( All figures expressed in Australian dollars unless stated otherwise ) : • • Total iron ore sales of 2.3 million wet metric tonnes ( Mwmt ) ( 1H 2019/20 : 2.8 Mwmt ) , comprising 1.1 Mwmt of high - grade direct - shipping ore ( DSO ) and 1.2 Mwmt of low - grade material . Iron ore sales revenue of $ 240.7 million Free on Board ( FOB ) ( 1H 2019/20 : $ 230.1 million ) . Net profit after tax of $ 74.5 million ( 1H 2019/20 : $ 44.6 million ) . Cashflow from operations of $ 113.8 million ( 1H 2019/20 : $ 66.4 million ) before capitalised waste stripping and mine development activities ( totalling $ 72.0 million ) and plant and equipment purchases ( $ 14.4 million ) . Cash , term deposits and liquid investments of $ 435.7 million at 31 December 2020 . Koolan Island's major waste stripping phase is well underway and planned for completion later this year , following which high grade iron ore sales are forecast to materially increase in line with the life of mine plan . Successful completion of the Mid - West low - grade sales program at Extension Hill , which generated over $ 30 million in cashflow since mid - 2019 on sales of 4.1 Mwmt . New Shine Iron Ore Project construction progressing on track to commence sales in the September quarter . Group ore sales guidance for 2020/21 unchanged at 2.8-3.3 Mwmt , including circa 1.8 Mwmt from Koolan Island . Group cash cost guidance for the full financial year has increased to $ 65-70 / wmt FOB before Shine Project development and pre - production costs ( $ 30 million ) , Koolan capitalised waste stripping ( $ 130 million ) and other capital improvement projects ( $ 25-30 million ) . Note : Group cash costs are reported FOB and include all operating , sustaining capital , royalties and corporate costs . Comment Mount Gibson Chief Executive Officer , Peter Kerr , commented : " Mount Gibson has delivered a robust financial result for the half - year , reporting a significantly increased net profit after tax of $ 74.5 million while progressing the waste stripping phase at the high - grade Koolan Island mine in the Kimberley , successfully concluding the Mid - West low - grade sales program and commencing development of the Shine Project . " It is satisfying that we continued to generate positive operating cashflows during the waste stripping phase at Koolan Island , which we expect to complete in the second half of calendar 2021. Ongoing strong iron ore prices continue to help us minimise the net investment required for this phase of substantial overburden movement , and positions us well to materially increase production and sales from next financial year onwards , in line with the mine plans for both Koolan Island and Shine . " " Our Mid - West and projects team is now focused on development of the Shine Project which is tracking to commence mining in the June quarter and for initial shipments early in the September quarter . Mount Gibson's robust balance sheet and strengthening future production profile leaves it well placed to continue generating strong financial returns and pursue new growth opportunities . "