Mount Gibson’s net profit declines due to lower iron ore prices

Australia-based iron ore miner Mount Gibson Iron has announced its financial results for the first six months ended December 31 of the financial year 2012-13.
 
In the given period, the company's net profit declined by 71.4 percent year on year to $37.1 million, reflecting lower prevailing prices and a broader product mix during the period. Net sales of Mount Gibson in the first six months amounted to $416.2 million, up 10.4 percent compared to the corresponding period of the previous financial year.
 
In the first six months of FY 2012-13, Mount Gibson increased total sales volumes by 56 percent year on year to a record 4.43 million wet metric tons, adding that the company remains on track to achieve targeted sales of 8-8.5 million mt by the end of the current financial year.
 
According to Mount Gibson, while sales volumes were at record levels, reported net earnings were significantly lower than in the corresponding period of the previous year, reflecting the substantial deterioration in iron ore prices and volatile market conditions during the September quarter.