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QUARTERLY REPORT MOUNT GIBSON MINING 01032 Mount Gibson Iron MOUNT GIBSON IRON LIMITED REPORT FOR THE QUARTER ENDED 31 MARCH 2021 22 April 2021 Key Points ( all currency in Australian dollars unless stated otherwise ) : At Koolan Island the scheduled overburden stripping program progressed with 4.4 million wet metric tonnes ( Mwmt ) of material moved during the quarter and the upper footwall ground support and crusher upgrade projects commenced . Mount Gibson continues to schedule a return to high grade sales , lower unit cash costs and strong cashflows during the second half of 2021 . The Shine Project in the Mid - West is advancing ahead of schedule and on budget , with shipments targeted to commence early in the September 2021 quarter . Iron ore sales in the March quarter of 0.23 Mwmt of Koolan Island fines products reflected the overburden stripping schedule and the heaviest northern wet season experienced under Mount Gibson ownership since 2006/07 . Group sales for the nine month year - to - date period total 2.5 Mwmt , in line with guidance . Group operating cashflow for the quarter of $ 3 million , before investment at Koolan Island of $ 35 million in scheduled advanced overburden stripping and $ 6 million in capital projects , and Shine development and pre - production costs of $ 11 million . Cash and liquid investments of $ 412 million at 31 March 2021 , with no borrowings . Reflecting inventory build and reduced shipments while the overburden stripping program is undertaken at Koolan Island , Group unit cash costs were $ 135 per wmt sold Free on Board ( FOB ) for the quarter before Koolan overburden stripping and capital projects and Shine development costs . Ore sales and unit cash costs remain on track with guidance for the 2020/21 financial year . Net profit after tax of $ 74.5 million reported for the half - year ended 31 December 2020 . Note : Cashflow and cost information is unaudited , and subject to period - end adjustments . Cash costs are reported FOB and include operating costs , royalties , sustaining capital expenditure and allocated corporate costs but are before Koolan Island overburden stripping investment and capital improvement projects and Shine development and pre - production costs . Comment Mount Gibson Chief Executive Officer , Peter Kerr , said : " Mount Gibson progressed the scheduled overburden stripping program at Koolan Island in the quarter with mining rates increasing as the wet season draws to a close . The site is also focused on the key Main Pit footwall support and crusher upgrade projects , before a return to high grade ore sales and significantly increased cashflows later this year . " In the Mid - West , very good progress was made at the Shine project with mining underway ahead of schedule in March and the establishment of site infrastructure advancing well . We continue to target the first shipment early in the September quarter . " Strong iron ore prices continue to reduce the net investment required this financial year as these capital projects are progressed , in particular the peak overburden stripping phase at Koolan Island . Group ore sales and cashflows are set to rise in the second half of this year as this overburden removal phase is substantially completed at Koolan Island and as ore sales commence at Shine . " Mount Gibson Iron Limited ABN 87 008 670 817 Level 1 , 2 Kings Park Road West Perth WA 6005 PO Box 55 , West Perth WA 6872 Telephone +61 8 9426 7500 ASX Code MGX Facsimile +61 8 9485 2305 Email admin@mtgibsoniron.com.au