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QUARTERLY REPORT MOUNT GIBSON MINING 01032 MOUNT GIBSON IRON LIMITED REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2021 21 October 2021 Mount Gibson Iron Key Points ( all currency in Australian dollars unless stated otherwise ) : • Group ore sales of 0.4 million wet metric tonnes ( Mwmt ) in the quarter comprising 0.3 Mwmt from Koolan Island and 0.1 Mwmt from the Shine operation in the Mid - West . At Koolan Island the overburden stripping program progressed with 4.9 Mwmt of ore and waste material moved during the quarter , similar with the prior quarter , and increased ore grades are expected from later this year onwards . The Main Pit footwall ground support and crusher upgrade projects were progressed albeit with COVID - related labour pressures . • Koolan Island's Ore Reserves as at 30 June 2021 were announced shortly after the end of the quarter¹ and comprise 17.5 million tonnes at 65.3 % Fe , making Koolan Island one of the highest grade direct shipping hematite iron ore deposits globally . • As advised on 1 October , the Mid - West Shine Project will be suspended this quarter to preserve the value of the asset due to the rapid deterioration of market conditions , including steep price reductions , widening product discounts and significantly increased shipping freight charges from Geraldton Port . • Group cash outflow for the quarter of $ 111 million , reflecting Koolan waste stripping and capital project investments , and Shine development and stockpile build expenditure . Revenues totalled $ 29 million before adverse provisional pricing adjustments from prior period shipments , reflecting the significantly weaker iron ore price in the quarter . • Cash and investments of $ 250 million at 30 September 2021 , with no borrowings . • Koolan Island sales guidance maintained at circa 2.0 Mwmt in 2021/22 and Shine guidance withdrawn . • Profit after tax of $ 64.0 million reported for the 2020/21 financial year , and a fully franked dividend of 2.0 cents per share paid in October , taking total dividends since 2011 to $ 332 million . Comment Mount Gibson Chief Executive Officer , Peter Kerr , said : " The September quarter was a challenging one for many iron ore producers , specifically due to the dramatic deterioration of market conditions in which iron ore prices halved , product discounts and penalties substantially increased and shipping freight charges more than doubled . Despite this , the underlying value of our Koolan Island operation remains robust and our waste stripping program is continuing as planned to enable the resumption of high - grade production . " The changed conditions necessitated a prompt response from the Company in relation to the Shine operation in the Mid - West , where we are in the process of suspending activities over the next month . This will preserve the value of the asset whilst maintaining the potential for a rapid restart should improved conditions justify . " While our investment to complete the bulk waste stripping and footwall support programs at Koolan Island is drawing heavily on the cash reserves maintained for this purpose , it will facilitate a significant turnaround in sales volume and quality from the second half of the financial year onwards and provide the platform for substantial cashflow generation for the following five years of the mine life . " 1 Refer Mount Gibson's Mineral Resource and Ore Reserve statement announcement dated 8 October 2021 . 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