Mount Gibson Iron Limited (ASX:MGX)
has swung to a net loss of $869.8 million for the first half of the 2015 financial year. This compares to a net profit of $78.3 million for the same period last year.
The tumbling iron ore price has bitten deeply into profits while the collapse of the Koolan Island Main Pit sea wall has burnt through cash reserves.
The company has responded quickly to the change in circumstances standing down the majority of the workforce at the affected site. A decision on whether the seawall will be repaired is yet to be made.
The focus has now shifted to Extension Hill as the primary operating asset. Mount Gibson raised sales guidance for that mine to between 5 million and 5.4 million tonnes for the 2015 financial year.
Further redundancies will take place as cost cutting continues, the miner declined to pay a dividend for the December half.