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

Aug 16 (Reuters) - Mount Gibson Iron Ltd (MGX) :

• 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