MGX - Mount Gibson Iron

[Porper]

Re: MGX

with all this bull about a double bottom and other chart nonsense , the only
way to pick winners is by analyzing the fundamentals of a company, they
mightn"t always go up straight away but in the long term they will .

Strange you call yourself trader but think charting is "nonsense".

Whichever way you invest/trade it is all subjective, just look at all the brokers "fundamental" reports, they are usually split between Buy, hold and sell.

I would also beware of following buy recs by anybody on here or any other forum.People run out of luck with their percentage of winners.

 

[TheAnalyst]

Re: MGX

Before you can open your big beak Chicken.......I heard that you are getting listed on the stock exchange today and your code is....DOG....suites you to....i would like to spit and P*ss on you so can you come to the ASX in Melbourne so maybe i will get my opportunity......right in that big dirty slanderous mouth of yours....C**T.......for sure you must have been bashed a few times throughout your life and you cant go to your local pub i reckon cos soon as someone like you has a few beers your mouth wouldnt stop moving and you would be an expert on everything to wouldnt you???

 

[chicken]

Re: MGX

Before you can open your big beak Chicken.......I heard that you are getting listed on the stock exchange today and your code is....DOG....suites you to....i would like to spit and P*ss on you so can you come to the ASX in Melbourne so maybe i will get my opportunity......right in that big dirty slanderous mouth of yours....C**T.......for sure you must have been bashed a few times throughout your life and you cant go to your local pub i reckon cos soon as someone like you has a few beers your mouth wouldnt stop moving and you would be an expert on everything to wouldnt you???

Just goes to show you losing your cool..I have been insulted by experts..You are not one of them...LOLO...now to buisness..did anyone read the full update properly...I looked at it again and I discovered the company will do their own crushing of the ore starting the end of April..funny that no one mentioned it..I thought its important...re Anylist request..Hematic is worked into Pallets and then mixed into iron ore to give it different gradings of Steel..Hematic has slightly less FE than the normal iron ore..anyway look it up ..thats what I understamd about Hematic....and I believe there is no difference in price..LOLOLOLOLOLOLO

 

[TheAnalyst]

Re: MGX

Just goes to show you losing your cool..I have been insulted by experts..You are not one of them...LOLO...now to buisness..did anyone read the full update properly...I looked at it again and I discovered the company will do their own crushing of the ore starting the end of April..funny that no one mentioned it..I thought its important...re Anylist request..Hematic is worked into Pallets and then mixed into iron ore to give it different gradings of Steel..Hematic has slightly less FE than the normal iron ore..anyway look it up ..thats what I understamd about Hematic....and I believe there is no difference in price..LOLOLOLOLOLOLO

Thanks finally for being a gentlement for once...and explaining hematite...so why would mgx go out of their way to add hematite to iron ore with no extra financial incentive to do so??

Does mgx have to raise equity or borrow or is it going to use its own money to build the crushing facilities? Also how much will mgx save each year by engaging the crushing process itself and not paying an outsider?

 

[chicken]

Re: MGX

Thanks finally for being a gentlement for once...and explaining hematite...so why would mgx go out of their way to add hematite to iron ore with no extra financial incentive to do so??

Does mgx have to raise equity or borrow or is it going to use its own money to build the crushing facilities? Also how much will mgx save each year by engaging the crushing process itself and not paying an outsider?

Now have you noticed..their cash balance of around $38 million..dont quote me but thats what I remember,,,the money is there for them in the Bank and I understand the Chinese are pretty well comitted as they want the Hematic..of 250mt....sothe company would not have gone ahead in ordering their own crusher and Railwagons if they had thought that their plan will not work..I comment MGX in having so much forsight after all their gearing is only $9 million which is nothing..the money they have got will pay for the plans and I pity just the junior miners around them as when the Chinese are on board this will blossom into a much larger outfit..should all happen before April...as per company statements....CHEERS..you make me lough

 

[chicken]

Re: MGX

Thanks finally for being a gentlement for once...and explaining hematite...so why would mgx go out of their way to add hematite to iron ore with no extra financial incentive to do so??

Does mgx have to raise equity or borrow or is it going to use its own money to build the crushing facilities? Also how much will mgx save each year by engaging the crushing process itself and not paying an outsider?

Re your first question....they mining the ironore first ,as the Hematics are in a different mine...and then starting to mine the hematics...a factory in China is being build which will take time and then the Hematics are send by sea to China where the Hematics are turned into Pallets....and then of course are being used in China..see Shaws report....as far as equity..no its self funding.. .

 

[TheAnalyst]

Re: MGX

Magnetite’s untapped potential

By BRENDA LEAHY

MAIN POINTS
There is an increasing level of overseas interest in magnetite ore, which is a viable alternative to hematite/goethite ores.
There are more than 20 identified magnetite deposits and prospects in Australia.
Magnetite concentrate is an important feedstock for pellet production.

Australia's significant magnetite resources could hold the key to further expansion of Australian iron ore production and potentially help supply Asia's current and emerging iron ore and steel markets.

The potential is underlined by OneSteel's recently announced plans for a $250 million project to convert its Whyalla Steelworks in South Australia to produce steel from magnetite.

But despite the robust picture of accelerating sales and increasing demand for iron ore - primarily from China - Australia's magnetite resources, and their international market potential, remain largely untapped, according to Ralph Holmes, Iron Ore Program Manager at CSIRO Minerals.

"Awareness of our magnetite resources and our two current operational pellet plants is low among the main market - the steel industry within China and within Asia generally," Dr Holmes says.

CSIRO Minerals has been investigating magnetite deposits and prospects in Australia for some time. The work has been driven by the increasing level of overseas interest in magnetite ore, as well as indications that demand for hematite/goethite iron ores (the current primary sources in Australia), well outstrips supply.

CSIRO presented a profile of Australia's current and prospective magnetite resources to the Chinese at a recent major industry conference in Dalian as part of the ongoing effort to build awareness of potential opportunities.

Magnetite ore is a well-known, viable alternative to hematite/goethite ores. It can be beneficiated to produce high-grade concentrate suitable for either pellet or sinter production.

"Magnetite concentrate is a very important feedstock for pellet production," explains Dr Holmes.

"It is characterised by high iron grade and lower impurities, the benefit of the exothermic magnetite-to-haematite oxidation reaction and the production of quality pellets at lower firing temperature with less fuel and lower maintenance costs.

"As more pelletising capacity is currently being put into operation, or is under construction in China, there is a strong demand for pellet feedstock.

"However, while it is common knowledge that Australia has abundant hematite and goethite sinter fines and lump ores for the blast furnace, few Chinese steel companies are aware of our magnetite resources."

There are more than 20 identified magnetite deposits and prospects, mostly in Banded Iron Formation (BIF), located across South Australia, Western Australia, Queensland and Tasmania.

These amount to an estimated 4.7 billion tonnes of magnetite resources in Western Australia, 1.6 billion tonnes in South Australia and about 700 million tonnes in Tasmania and Queensland.

Australia has one operational magnetite mine at Savage River in Tasmania (owned by Australian Bulk Minerals), which currently has estimated reserves of 227 million tonnes of magnetite ore.

The Iron Magnet Deposit (about 50 kilometres west of Whyalla in South Australia), soon to be developed by OneSteel, has an estimated reserve of 300 million tonnes of magnetite ore.

 

[TheAnalyst]

Re: MGX

What i would like to know now is how much mild steel does one tonne of iron make?

How much mild steel does one tonne of hematite make??

How much mild steel does one tonne of magnetite make??

And is this the measure that all three minerals are sold and quoted on the world commodity markets?

Reason i want know know if hematite and magnetite make more steel than iron ore and if this is the case it may explain their effeciancy and cost savings as well and even eventually a higher price than just iron ore.

 

[chicken]

Re: MGX

Just goes to show you losing your cool..I have been insulted by experts..You are not one of them...LOLO...now to buisness..did anyone read the full update properly...I looked at it again and I discovered the company will do their own crushing of the ore starting the end of April..funny that no one mentioned it..I thought its important...re Anylist request..Hematic is worked into Pallets and then mixed into iron ore to give it different gradings of Steel..Hematic has slightly less FE than the normal iron ore..anyway look it up ..thats what I understamd about Hematic....and I believe there is no difference in price..LOLOLOLOLOLOLO

Analyst and board,
Correction here, the Hematic which are turned into pallets after checking with a specialist in Iron production has informed me that the pallets are in fact HIGHER in FE ..iron concentration then normal iron ore..they are used in producing a higher quality steel and are in fact more expensive than normal iron ore..so MGX s....Pallets will be desirable to the Chinese as its use for better quality steel.....so the 250mt are now a more attrative business proposition..no wonder the Chinese are still keen to be involved in this project...thanks analyst for asking the question as I did not know myself...had the wrong end of the stick...makes me happy to know that MGX have indeed got a better proposition than I thought.....

 

[TheAnalyst]

Re: MGX

Analyst and board,
Correction here, the Hematic which are turned into pallets after checking with a specialist in Iron production has informed me that the pallets are in fact HIGHER in FE ..iron concentration then normal iron ore..they are used in producing a higher quality steel and are in fact more expensive than normal iron ore..so MGX s....Pallets will be desirable to the Chinese as its use for better quality steel.....so the 250mt are now a more attrative business proposition..no wonder the Chinese are still keen to be involved in this project...thanks analyst for asking the question as I did not know myself...had the wrong end of the stick...makes me happy to know that MGX have indeed got a better proposition than I thought.....

Hi Chicken

Do you think that you could get a price on all three minerals now(hematite, magnetite and iron ore) per tonne or in pallet form at current market price?

Then we can use the company estimates of there deposites and value the whole lot and we can class that as an asset that they have as well as adding the other current and non-current assets that are used in the mining operations because i know that their last NTA per share is about 22 cents and was wondering if that included the mining deposits as well?

 

[johnno261]

Re: MGX

Hi Chicken

Do you think that you could get a price on all three minerals now(hematite, magnetite and iron ore) per tonne or in pallet form at current market price?

Then we can use the company estimates of there deposites and value the whole lot and we can class that as an asset that they have as well as adding the other current and non-current assets that are used in the mining operations because i know that their last NTA per share is about 22 cents and was wondering if that included the mining deposits as well?

The Analyst, you are wasting your time trying to ascertain all of the above when it comes to a stock like MGX. Those whom know roughly the tonnage P/A, based on price per tonnage over the minelife, will give you the most basic form of value of this company. Having said all that, is it really going to initiate you to buy this stock?
My personal opinion is also not to worry too much about every discrete little figure as we all know, when you purchase into any mining company, figures can change overnight!! Resource Upgrades,Iron Ore Price Upgrades,Profit downgrades, etc etc etc. Can you see where I'm coming from. I could go on and on about 100's of instant variants that could happen!!!!

 

[TheAnalyst]

Re: MGX

The Analyst, you are wasting your time trying to ascertain all of the above when it comes to a stock like MGX. Those whom know roughly the tonnage P/A, based on price per tonnage over the minelife, will give you the most basic form of value of this company. Having said all that, is it really going to initiate you to buy this stock?
My personal opinion is also not to worry too much about every discrete little figure as we all know, when you purchase into any mining company, figures can change overnight!! Resource Upgrades,Iron Ore Price Upgrades,Profit downgrades, etc etc etc. Can you see where I'm coming from. I could go on and on about 100's of instant variants that could happen!!!!

Hi Johhno

The stock is now on my watch list.....????.....Johnno i just asked some fair questions that i am sure Chicken or maybe yourself would know the current market price of all three minerals and the estimated amount that mgx has in the ground...i could find out myself but why?? when you have people on the thread who have the stock and they can probally answer off the top of their head.

The go is theat the 3 minerals are going to increase in value over the coming yr and forward...by know this stuff we can get a rough figure about where mgx earnings and earnings increases will be over the period...my guess is iron ore is going to increase by a minimum of 10% over the meduim term so this will be a 10% increase in earnings and an increase in share price in likely circumstances.

If i have the figures if mgx come out with an announcement like zinnifex do and underestimate their deposites and then when the market is alerted it has more and will increase its sales therefore its share price increases.

This is why i want to know...i may ask questions but i am The Analyst and everything i ask is for a reason though some may not realise what i am getting at?

 

[laurie]

Re: MGX

The stock is now on my watch list.....????.....Johnno i just asked some fair questions

TheAnalyst
Just out of curiosity do you do this for every share you buy!

cheers laurie

 

[TheAnalyst]

Re: MGX

TheAnalyst
Just out of curiosity do you do this for every share you buy!

cheers laurie

Yes Laurie and especially a stock like this one as it is young...un proven and i want to know its parameters...its ok for someone who wants to buy and just hold...but i want to know its weaknesses and its strengths and i want to get the best entry point that i possibly can and have a good idea when its most likely going to increase in value and the drivers of thhis growth.

Other stocks in the top 200 are fairly easy to read compared to these small caps as they are much more volitile and unpredictable. For example Shaws bought in at 85 cents and they are ment to be good but i personally donot think that Shaws is the best...just imagine if they got in at a lower price.

See the top 200 have installment warrants issued over them so leverage is easy and i can put small amounts of capital and get good fast rewards but these smaller ones they do not have installments issued over them and it is highly unlikely due to risk that they would...so i think i can double or even triple my money on this stock eventually but not today but eventually and there is a few other mining stocks out there....but remember laurie bedfore the dot coms it was mining and if you hadnt got out fast enough back then you did your dough...so we are seeing the repeat of a cycle and it will happen again it always does...never been a time when it hasnt...

 

[laurie]

Re: MGX

so we are seeing the repeat of a cycle and it will happen again it always does...never been a time when it hasnt...

TheAnalyst
Yes true but every body say's we are going to have a correction! even my blind dog can see that BUT WHEN is what I want to know! every one say's that phrase to cover themselves when it happens "See I told you so" I must admit I have never used charts just my gut feeling,knowledge of the stock and it's was my gut feeling about MGX that got me in @.44c I'm not at all knocking your method hey it's your money and you have every right to be cautious I'm a bit of a risk taker so horses for courses

cheers laurie

ps I do have a blind dog he's my best mate

 

[TheAnalyst]

Re: MGX

TheAnalyst
Yes true but every body say's we are going to have a correction! even my blind dog can see that BUT WHEN is what I want to know! every one say's that phrase to cover themselves when it happens "See I told you so" I must admit I have never used charts just my gut feeling,knowledge of the stock and it's was my gut feeling about MGX that got me in @.44c I'm not at all knocking your method hey it's your money and you have every right to be cautious I'm a bit of a risk taker so horses for courses

cheers laurie

ps I do have a blind dog he's my best mate

yer, gut feeling sometimes works but can that be used as evidence in a court of law?......or as substance of a report for a valuation to interested parties?...which sector do you say is going to have a correction? mining? to be honest at the moment besides the trains not arriving on time in regards to MGX the biggest threat to its share price is the market price of iron ore and the next one is the amount of money that it has to spend on capital expendtiture which can be unpredictable and lumpy which is why there is no dividend.

The next one after that is the economic growth of china and india take a hit and then everyone is in for a little bit of trouble, except the banks of course.


MGX has the capacity to take on a whole more debt at this time and do not be surprised if it does in the form of preference shares or convertible notes or debentures...it may even raise equity but for future expansion and its current debt to equity ratio it all points to choosing debt as its next option.

You were very lucky to have got in so cheaply..so when did you get in at that price?

 

[chicken]

Re: MGX

Analyst, as I said this company has potential, as for price..who knows? The price will be different than last year and the 250mt of Hematics you could say the pellets per ton will be anything from $80 to $120 per ton so it looks as if the Chinese understand what they are dealing with... the potential is in their assets....which look like many Billions of $$$......and of course the company is producing and shipping Iron ore...and making $$$$$$

 

[TheAnalyst]

Re: MGX

Analyst, as I said this company has potential, as for price..who knows? The price will be different than last year and the 250mt of Hematics you could say the pellets per ton will be anything from $80 to $120 per ton so it looks as if the Chinese understand what they are dealing with... the potential is in their assets....which look like many Billions of $$$......and of course the company is producing and shipping Iron ore...and making $$$$$$

Is that the actual current price for hematite and have you got a web link to that?

Also what is the current price of magnetite?

I use to be a welder/boilermaker and to get a higher(stronger) tensile steel manufaturers use to add i think it was more carbon to the steel so it would be harder than just your ordinary mild steel especially when we had to make conveyor belts, is this the reason why hematite and magnetite are better for mking this type of steel and it reduces the extra time and inputs into making harder more tensile steel than just having to use iron ore?

 

[laurie]

Re: MGX

You were very lucky to have got in so cheaply..so when did you get in at that price?

17/1/2005

I use to be a welder/boilermaker

Arhhh now we are getting somewhere you guys use to make me brackets ect when I was a sparkie you guys were hopeless when we use to play 500 against you at smoko

cheers laurie

 

[TheAnalyst]

Re: MGX

Is that the actual current price for hematite and have you got a web link to that?

Also what is the current price of magnetite?

I use to be a welder/boilermaker and to get a higher(stronger) tensile steel manufaturers use to add i think it was more carbon to the steel so it would be harder than just your ordinary mild steel especially when we had to make conveyor belts, is this the reason why hematite and magnetite are better for mking this type of steel and it reduces the extra time and inputs into making harder more tensile steel than just having to use iron ore?

I am answering me own questions and yes i am on theright track, especially with this link....cost saving properties of magnetite are even better than hematite

http://www.pir.sa.gov.au/byteserve/...esa_journal/mj_35/mj35_onesteel_magnetite.pdf