Iron ore miner Mount Gibson has lifted its sales targets for fiscal 2016, saying it can navigate through uncertain market conditions.
Mount Gibson has increased group iron ore sales guidance to 4.5 - 5.0 million wet metric tonnes (Mwmt) for full year 2016, up from 4.0 - 5.0 Mwmt in the September quarter.
Chairman Lee Seng Hui said the company had managed to reposition itself following falls in the iron ore price as it slashed corporate costs by 50 per cent and cut the total cost of goods sold over the year by 17 per cent.
"We are confident that Mount Gibson can navigate the uncertain market conditions and capitalise on our financial strength to deliver strong long-term returns for our shareholders," Mr Hui told shareholders at the company's annual general meeting in Perth on Wednesday.
He said the company remained in a strong position relative to other miners, with minimal debt and substantial cash reserves.
Mount Gibson Iron recently booked a $911.4 million full year loss for 2014/15 sparked by $945.2 million in non-cash impairment charges it was forced to make after iron ore prices plunged and the main pit seawall at its Koolan Island operations collapsed in November.
The company says restructuring is ongoing and it is continuing to examine the business case for the proposed Koolan Island Logistics Base to support oil and gas activity in the Browse basin off Western Australia.
Mount Gibson says it will ensure it is capable of restarting mining operations at Koolan Island in the future.
Mr Hui said the 2014/15 year was one of the most challenging in Mount Gibson Iron's history, with the company reducing its total workforce by 68 per cent.
Mount Gibson is targeting average all-in costs of $50 to $54 per wet metric tonne as it cuts head office costs by $1 million per month in the September quarter.
Mount Gibson shares were 0.25 cents, or 1.1 per cent, lower at 22 cents at 1145 AEDT.
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