Mount Gibson lowers guidance on repairs delays

Company News

Mount Gibson Iron Limited (ASX:MGX) has revised down its full year guidance in light of a delay in the restart of the Koolan Island mine in the Kimberley.
 
The iron ore miner has dropped its full year sales guidance to between 6.0 and 6.4 million tonnes for the 2015 financial year.
 
The company was working on instability at the mine after a slip on 24 October and has experienced further complications on the weekend.
 
Estimated capital costs of remediation work are around the $5-10 million mark and work on the main pit continues to be suspended as a precautionary measure.
 
Mount Gibson reported a net profit of $96.3 million in the 2014 financial year.

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