Full Year 2024 Mount Gibson Iron Ltd Earnings Call Transcript
Key Points
- Mount Gibson Iron Ltd (ASX:MGX) delivered a solid operating and financial performance in FY24, particularly in the first half.
- Sales were near the upper end of guidance at 4.1 million wet metric tons, generating full-year sales revenue of just under $668 million.
- Unit cash operating costs declined, and the Koolan Island operation generated a solid cash flow of $284 million, three times more than in FY23.
- The company's cash and liquid investment reserves increased by $280 million to $442 million at period end.
- The Board decided to implement an on-market buyback of up to 5% of the company's issued shares, reflecting confidence in the company's outlook.
- The second half of FY24 was more challenging due to weaker iron ore prices and the transition to the eastern half of the pit.
- Unit cash operating costs were 5% above the targeted range at $74 per ton shipped FOB before royalties and capital projects.
- Noncash accounting impairments totaling $159.1 million eroded the profit before tax and impairments.
- Net profit after tax for FY24 was a modest $6.4 million due to weaker iron ore prices and impairments.
- The outlook for FY25 includes lower targeted sales of 2.7 million to 3 million tons and higher unit cash operating costs of AUD95 to AUD100 per ton FOB.
Thank you for joining today's teleconference for the release of Mount Gibson Iron FY 2024 financial results. Mount Gibson's Chief Executive Officer, Peter Kerr, will be leading the discussion and is joined by Chief Financial Officer, Gill Dobson; and External Relations Manager, John Phaceas.
Mr. Kerr will provide a brief overview, after which there will be an opportunity to ask questions. Due to time constraints, only institutional participants will be invited to ask questions at that time. A recording of the call will also be available via the Mount Gibson website shortly after completion of today's teleconference.
Thank you, and go ahead. Thanks, Peter.
Thanks, Lisa. Good morning all, and thank you for joining us to discuss Mount Gibson Iron's financial results for the '24 financial year. As usual, I'll give a brief overview before handing back to Lisa for any questions you may have. And also, as usual, any dollar references we make as to Australian dollars unless otherwise
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