- GWR (GWR) shares slip after the company released its June quarterly report, despite reporting record iron ore shipments over the period
- The company shipped 222,764 wet tonnes of iron ore over the quarter compared to 107,498 during the March period
- A definitive agreement with Macarthur Minerals is yet to be struck for an annual iron or shipment
- GWR held $23.7 million in cash reserves and no debt as at quarter end
- GWR Group shares are down 8.22 per cent to trade at 33.5 cents
GWR (GWR) shares have slipped after the company released its June quarterly report, despite reporting record iron ore shipments over the period.
The company said it shipped 206,774 tonnes of iron ore lump and 13,990 tonnes of iron ore fines throughout the quarter, to bring its total to 220,764 total wet tonnes compared to 107,498 in the March quarter.
GWR affirmed its focus had been on lump sales from production at the C4 West Wiluna Mine in Western Australia, while it builds fines stocks in preparation of shipping when lump premiums are lower.
According to GWR, haulage volumes were up 86 per cent on the previous quarter to over 93,000 tonnes and are projected to reach up to 120,000 by the end of July.
This increase meant GWR was able to load four vessels over March and April.
Mining is said to be progressing well with roughly 160,000 tonnes of ore per month delivered to the run of mine for processing.
Meanwhile, the company’s term sheet with fellow ASX-lister Macarthur Minerals (MIO) for 400,000 tonnes per annum of Wiluna West iron ore is still subject to a more definitive arrangement.
Shipping costs and royalties were higher due to increase iron ore prices and a competitive market for appropriately sized vessels.
At the end of the quarter GWR held cash reserves of $23.7 million and no debt.
GWR Group shares were down 8.22 per cent at 12:24 pm AEST to trade at 33.5 cents.