midwest corp boosts murchison earnings

Midwest Corp boosts Murchison earnings

by Rebecca Lawson

Acceptance of Sinosteel Corporation's takeover offer for Midwest Corporation has kept Murchison Metals' net profit after tax in the black at $17.5 million.

During the six months to the end of December, Murchison pocketed some $135 million from the sale of its 9.2 per cent holding in Midwest in September last year.

While the sale boosted Murchison's bottom line, it was not enough to beat the previous corresponding period's net profit after tax of $57.4 million.

Revenue for the period was stable at $3 million while exploration costs substantially increased from $1.25 million to $23.6 million.

During the reporting period, Murchison's 50 per cent owned subsidiary Oakajee Port & Rail was announced as the preferred proponent for the development of the $3.5 billion Oakajee deepwater port and associated rail works in the Mid West region.

Additionally, Korean steel producer POSCO increased its shareholding from 9.7 per cent to 12.26 per cent.

Subsequent to the reporting period, Sinosteel lifted its interest from 2.4 per cent to 5.85 per cent.

Cash at the end of December was $162 million and the company has no debt.