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QUARTERLY REPORT MOUNT GIBSON MINING 01032 MOUNT GIBSON IRON LIMITED REPORT FOR THE QUARTER ENDED 30 JUNE 2021 28 July 2021 Mount Gibson Iron Key Points ( all currency in Australian dollars unless stated otherwise ) : Production has commenced at the Shine Project in the Mid - West with crushing and road haulage to Geraldton Port now underway . The first ore shipment remains targeted for August . At Koolan Island the overburden stripping program continued with 5.0 million wet metric tonnes ( Mwmt ) of total material moved during the quarter . The Main Pit footwall ground support and crusher upgrade projects progressed , albeit with COVID - related delays , and increased sales volumes , ore grades and cashflows remain scheduled for the December 2021 quarter . Group sales of 0.5 Mwmt in the June quarter and 3.0 Mwmt for the 2020/21 financial year , in line with guidance , comprising 1.2 Mwmt from the Mid - West and 1.8 Mwmt from Koolan Island . Group operating cashflow for the quarter of $ 5 million , before investment of $ 40 million in scheduled overburden stripping and $ 11 million in capital projects at Koolan Island , and Shine development and pre - production costs of $ 17 million . Group unit cash costs before capital expenditure , as detailed above , were $ 82 per wmt sold Free on Board ( FOB ) for the quarter and for the full year averaged $ 66 / wmt FOB , in line with guidance . • Cash and investments of $ 365 million at 30 June 2021 , with no borrowings . Full year results to be provided in August along with production and cost guidance for 2021/22 . 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 advanced its development and production plans during the June quarter and despite increasing COVID - related labour and cost pressures , finished the financial year in a robust position . Our focus remains firmly on completion of the current waste stripping program at Koolan Island and upgrades to the operation's processing facilities , as well as ramp - up of production activities at the new Shine project in the Mid - West . " The first shipment of Shine iron ore is targeted for August and increased shipping volumes and ore product grades at Koolan Island remain scheduled for the December quarter . Mount Gibson's operating cashflows are then expected to substantially increase . " Continued strong iron ore prices have materially reduced the total draw on our cash reserves during this important phase of investing in our business and the benefits of this investment program are now coming into view . We look forward to strengthening our operating and financial performance over the coming year . " 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 Facsimile +61 8 9485 2305 Email admin@mtgibsoniron.com.au ASX Code MGX