The Australian iron ore exploration company Murchison Metals Ltd (Murchison) has announced a AU$55.6 million profit for the financial year ending June 30, 2008.
The strong profit result follows the completion of the transaction with Mitsubishi Development Pty Ltd (Mitsubishi), resulting in Mitsubishi acquiring a 50 percent interest in Murchison's iron ore businesses - i.e. in Crosslands Resources (Crosslands) and its infrastructure business Oakajee Port & Rail (OPR). A second and more substantial payment is due after completion of the Jack Hills Stage 2 Bankable Feasibility Study.
Moreover, by selling its 9.2 percent stake in Midwest Corporation to Sinosteel Corporation, Murchison raised approximately AU$135 million, which is to be used for the development of the company's existing assets - Crosslands, OPR, and the Rocklea project in the Pilbara region of Western Australia.
Currently, Murchison's cash position stands at approximately AU$165 million.