REPORTING SEASON: Mount Gibson Iron (MGX)
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Figure 1: Mount Gibson Iron 12 month chart
Mining and exploration company Mount Gibson Iron (MGX) has reported a 2.9% fall in FY net profit to $157.3M.
Underlying net profit excluding the Mineral Resources Rent Tax credit came in at $92.9M, below expectations and well down on last year’s underlying profit of $198M. EBITDA was down 6.4% but there was a healthy 32% increase in revenue to $852.9M.
MGX said its second half was boosted by strong prices and a weaker Aussie dollar.
Mount Gibson’s cash flow looks strong and MGX currently has a cash position of $376M which is almost half its market capitalisation.
MGX also says it has identified permanent ongoing savings of at least $50M per year and expects growth in FY14 sales with guidance of 9 to 9.5 million tonnes of iron ore.
Shareholders will receive a fully franked final dividend of 2 cents per share, unchanged from FY12’s payment.
It brings total FY13 dividend payments to 4 cents per share.
MGX shares rose following the result in early trade on Friday but are down around 14% so far this calendar year.