Brief: Mount Gibson Iron Updates On Fire Incident Within Koolan Island Crushing Plant

MGX Resources

16/08/2022 02:36

Aug 16 (Reuters) - Mount Gibson Iron Ltd  MGX.AX :
    * KOOLAN UPDATE AND NOTICE RE FY22 FINANCIAL RESULTS
    * ON 12 AUGUST A FIRE OCCURRED IN PRODUCT SIZING SCREEN AREA
WITHIN KOOLAN ISLAND CRUSHING PLANT
    * WHILE ORE PROCESSING THROUGH PLANT IS CURRENTLY SUSPENDED,
MINING OF IRON ORE FROM KOOLAN MAIN PIT CONTINUES AS PLANNED
    * INITIAL ASSESSMENT INDICATES FIRE HAS DAMAGED PART OF
PRODUCT
SIZING SCREEN ASSEMBLY AND ASSOCIATED FEEDER AND CONVEYOR
EQUIPMENT
    * ALL PERSONNEL WORKING IN AREA WERE EVACUATED AND THERE
WERE NO
INJURIES
    * ASSESSMENT OF SURROUNDING STEEL STRUCTURES IS UNDERWAY
    * ORE PROCESSING THROUGH PLANT IS CURRENTLY SUSPENDED,
MINING OF
HIGH GRADE IRON ORE FROM KOOLAN MAIN PIT CONTINUES AS PLANNED
    * SITE HAS SUFFICIENT CRUSHED ORE STOCKPILES ON HAND TO MEET
IMMEDIATE SHIPPING REQUIREMENTS
    * EXPECTS TO RECORD NON-CASH IMPAIRMENT EXPENSE OF A150
MILLION
BEFORE TAX FOR FY22
    * SEES NON-CASH IMPAIRMENT EXPENSE A$150 MILLION BEFORE TAX
ON
CARRYING VALUE OF NON-CURRENT ASSETS WITHIN KOOLAN ISLAND
BUSINESS UNIT
    * FIRE IN PROCESS SCREENING PLANT CIRCUIT WILL TEMPORARILY
SLOW
OPERATIONAL AND FINANCIAL IMPROVEMENT TRAJECTORY BUT IS
RECOVERABLE
    * SITE WILL BE WELL POSITIONED TO RECOVER DEFERRED SHIPMENTS
ONCE
PROCESSING CAPACITY RETURNS TO PLANNED LEVELS

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