Australia iron ore mining junior Mount Gibson added to its cash reserves in the operating quarter ending 31 December 2015, the company says in a quarterly report monitored by Kallanish. The company managed to increase ore sales and reduce its all-in group cash costs over the period.

“In the face of extremely tough market conditions in the December quarter, during which prices fell to their lowest level in a decade, it was a significant achievement to add to our cash reserves through continued strong operational performances at Koolan Island and Extension Hill,” ceo Jim Beyer says.

The miner posted total iron ore sales of 1.52 million wet metric tons in the December quarter, 23% up year-on-year. The company’s average realised fines price however was $36/dry metric ton fob which was -40% down on the same basis. This price excludes sales of material from the Acacia East satellite pit on Koolan Island, it confirms.

Mount Gibson continued to focus on cost reductions and productivity improvements in the December quarter it says. All-in group cash costs averaged AUD 47/wmt ($32.2/wmt) fob in the quarter, compared with AUD 52/wmt in the preceding quarter. All-in group cash costs are reported on a fob basis and include cash opex, royalties, capex and corporate costs, Mount Gibson verifies.

The miner continues to expect FY2016 sales to be within its guidance range of 4.5-5.0m wmt at an average all-in group cash cost of AUD 50-54/wmt fob.