APAC Resources Limited provided earnings guidance for the six months ended 31 December 2014. The board of directors of the company announced to the shareholders of the company and potential investors that, based on the preliminary review of unaudited consolidated management accounts of the company and its subsidiaries (the Group) for the six months ended 31 December 2015, the interim results of the Group are expected to record a substantial reduction in loss attributable to owners of the company as compared to the loss attributable to owners of the company for the six months ended 31 December 2014. The expected reduction in the loss attributable to owners of the company mainly reflects the sharing by the Group in the first half of 2015 Period of the non-recurring reported losses (the Non-recurring Losses) of Mount Gibson, which was partially offset by the reversal of impairment loss already accounted for in the Group's share of losses of Mount Gibson, but was not repeated in the first half 2016 Period.

The Non-recurring Losses were attributable to the flooding of the Koolan Island mine of Mount Gibson after a seawall failure and lower iron ore prices.