Territory reports $41m turnaround profit

Reborn iron ore producer Territory Resources has posted a $41.3 million full-year profit, representing a $112.7 million turnaround in its finawhat are the byproducts of mining leadncial performance from the previous year. Territory benefitted from improved operating performance at its flagship Frances Creek mine in the Northern Territory and a rebound in iron ore prices.

Territory came close to collapse amid the global financial crisis when a series of inter-company loans left it crippled by debt. It was thrown a lifeline late last year by Noble, which agreed to take on the company's most pressing debts. The full year profit was struck on a 54 per cent increase in operating sales revenue to $175.9 million, which reflected both a 30 per cent increase in iron ore shipments for the year to 2.027 million tonnes and a strong rebound in iron ore prices. Underlying profit for the year totalled $34.4 million. Territory said it expected its debts to Noble to be fully repaid in the 2011 financial year.