Mt Gibson Iron doubles profit as output, prices gain

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Mt Gibson Iron doubles profit as output, prices gain

Mt Gibson Iron doubles profit
Mt Gibson Iron Ltd, an Australian iron-ore producer, said full-yearprofit doubled to a record because of higher output and increasedprices.
Unaudited net profit was A$113.3 million (US$111 million) for the12 months to June 30, the Perth-based company said today in astatement to the Australian stock exchange.
Prices for steelmaking raw materials such as iron ore have leapt torecords this year on rising demand for steel to fuel building boomsin emerging economies such as China. Iron ore has gained almostfourfold since 2001.
Mt Gibson`s output rose to a record in the three months to June 30,it said. Production from the Tallering Peak mine in WesternAustralia increased 44% to 981,000t and output from the KoolanIsland mine, also in Western Australia increased more thanthreefold to 945,000t.
Mt Gibson fell A$0.07, or 2.9%, to A$2.34 at the 4:10pm Sydney timeclose on the exchange before the earnings statement was issued. Thestock has declined 17% this year compared with the 21% fall in thebenchmark index.
(Bloomberg, July 21)
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