# MGL - Magontec Limited



## System (26 November 2011)

Magontec Limited (MGL) was formerly known as Advanced Magnesium Limited (ANM).

Previous discussion of this company can be found in the ANM thread: https://www.aussiestockforums.com/forums/showthread.php?t=1116


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## springhill (12 August 2012)

MC - $13m
SP - 2.8c
Shares - 425m
Options - NQ
Cash - $10.7m (+ potential for $2.1m by 12/2013) see asterisk below

*Major Shareholders*
KWE(HK)Investment Development Co Limited  13.13
Qinghai Salt Lake Magnesium Industry Limited  13.04
Straits Mine Management Pty Limited 9.53

MGL has too many shares on issue for my criteria, but this may interest others. It has cash and a deal with Qinghai Salt Lake Industry Company Limited (QSLI) on the cards.
*Background on Qinghai Salt Lake Industry Company Limited* 
QSLI is the parent company (89.4% shareholder) of QSLM. QSLI was founded in 1952 and listed on the Shenzhen stock exchange in 1997 (Code:000792.SZ). In December 2011 QSLI recorded annual revenues of RMB 6.78 billion (A$1.07bn) and Earnings Before Tax of RMB 3.35 billion (A$531m). The company employs 9,200 people and has a current market capitalisation of RMB49.6 billion (A$7.87bn)

Am unable to paste materials relevant to MGL's announcement on June 21. Link below
http://www.asx.com.au/asxpdf/20120621/pdf/426yqgd3cc3058.pdf

***Magontec Limited (MGL) Signs Conditional Contract to Sell Its Interest in Joint Venture Entity Henan Keweier Alloy Materials Co., Limited (HNKWE)*
The principal terms are as follows.
i. The buyer has agreed to acquire MGL’s interest for an amount equal to the lesser of $2,100,000 and the AUD equivalent of 45% of the net assets of HNKWE as at the date of payment of the purchase price.
ii. The purchase price is due to be paid on or before 31 December 2013.
iii. In the period to approval (by both PRC authorities and MGL shareholders) of disposal of MGL’s interest, MGL has ceded control of HNKWE to the prospective buyer and residual HNKWE shareholders. Should either of the aforementioned approvals not be forthcoming, MGL will reassume control.


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## Cam019 (1 August 2018)




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## barney (1 August 2018)

Quick look says around $30 million market cap with approx. $9 million in the bank …. Good ratio.

Company is turning over a lot of revenue with their Magnesium Projects but suffered a profit slump (still profit) over the last 12 months for various reasons.

If they can increase their profit margins even slightly, they have the potential to increase their share price quickly over the next year or two …..

Watchlist


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## SyBoo (26 October 2021)

Up 39% at time of writing, because of reports of a global magnesium shortage.

They have a plant in China which recycles scrap magnesium into ingots, cathodes, etc.

I would assume the price of scrap Mg has also risen, and I'd hate to see the companies latest electricity bill. Do they still have electricity to run their plant?

Oh wait, maybe that's why there is a Mg shortage, because companies like this one can not do what there supposed to do. Anyway it's up 39%.


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## Dona Ferentes (27 October 2021)

SyBoo said:


> Up 39% at time of writing, because of reports of a global magnesium shortage.



 and up another 20% today. Got to 65c and closed at 58c



> China says the West should respect its 'own pace' as Europe and US face magnesium supply crisis​











						Millions of jobs are under threat because China has slashed its magnesium output
					

European industry groups fear remaining magnesium stocks will run out by the end of November as China's power crisis affects the global supply.




					www.abc.net.au
				




.... _rare earths are so last Tuesday_


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## Dona Ferentes (13 August 2022)

_here we go again_?


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## Dona Ferentes (13 August 2022)

Magontec is already a producer of magnesium products and it has come in with an expected net profit after tax of $13m for the first six months of 2022. The second half is not expected to be a strong, as ... "_[c]urrently, magnesium prices and general economic and market conditions are weakening. _"



> “_Trading conditions have exceeded company expectations and reflect high underlying magnesium prices, volume growth in some product lines, and higher levels of demand,”_ exec chair Nic Andrew says. “_Importantly, this record result in the first half of FY2022 means that Magontec Limited has no net debt, as of 30th June 2022, and a robust financial platform.”_




MGL has three businesses: magnesium scrap recycling, magnesium anode production and a primary mag alloy plant in China. It is the primary alloy plant, currently in care and maintenance, which could be a game-changer for the company.



> _“We are waiting for the adjacent electrolytic smelter to start delivering us material_,” Andrews has said. “_We think they will later this year or early next year._”


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