September 06, 2008

Portman January to June 2007 profit up by 9.2% YoY

It is reported that Australian iron ore producer Portman Limited's revenue jumped considerably in January to June 2007 period but its profit was not as strong. It posted a 27.52% YoY lift in revenue to AUD 266.2 million and 9.2% YoY growth in profit to AUD 57.1 million.

Ore mined at its mainstay Koolyanobbing project in Western Australia was consistent with the forecast output of 7.65 million tonnes on an annualized basis. As per report, a new mining contractor BGC will commence operations at the mine on September 1st 2007.

Portman also plans to cease mining its Cockatoo Island project in WA early in the first quarter of 2008 with final shipments at end of the first quarter 2008.

Various other options to extend operations are under review. It estimate of 2007 production is 8.4 million tonnes which includes 700,000 tonnes from Cockatoo Island and estimate of 2007 sales is 8.2 million tonnes of which 7.65 million tonnes is attributable to the Koolyanobbing operation.

Portman is 80% owned by US based Cleveland Cliffs Inc.