Australian (ASX) Stock Market Forum

MGX - Mount Gibson Iron

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chicken said:
the company has 1 billion tones of magnetic hematic ore to be mined at Mt Gibson...into 250mt of Iron Pellets....which is worth many billions of $$$ .....but the Chinese you will see will buy at 75c...why...because the pellets are used to enhance their steel for export quality....do your own research....And the Chinese need them...as they require them for as I stated before...have you got the story now.... :2twocents
Click to expand...


What am I missing?
One billion tonnes of magnetic hematic ore ( at Extension hill?) worth billions of $$$. So why is there that much trouble with the bankable feasibility study. They will not call the study final (because they are trying to reduce potential start up costs? )and have asked other companies to quote on equipment.
If I had a mine worth billions of $$$ why would I quibble about maybe 70 to 100 million in extra costs?
Is it possible that they are not happy with the study results so far because the value of the mine is not so great after all?


Also what is in it for Shougang? Are they going to get a discount rate for their ore? Is that why they are interested? At a discount rate is the mine worth it?
I keep reading about negotiations between MGX and Shougang but nowhere does it mention if there is an agreed rate for the ore as part of the negotiation.

Negotiations keep dragging on, Feasibility study keeps dragging on. WHY?
 
From a shaw report which was sent to me by someone who is actually a client.

"Mt Gibson has established a proven resource of over 200Mt of magnetite at Extension Hill. The potential resource within the
Mt Gibson range is in excess of 1Bt. MGX holds a 50% interest in the magnetite deposits, with the balance under option until
Dec 2005 at a price of $17.5m. However, as at 29 September 2004, the company planned to effectively exchange its interest in
the Mt Gibson deposits for a 30% shareholding in Hong Kong-based Asia Iron Holdings Limited, subject to shareholder
approval"

So, only 200Mt is proven. I saw no announcements regarding the 50% option, so I believe MGX only owns 100Mt of proven magnetite resourses.
 
markrmau said:
From a shaw report which was sent to me by someone who is actually a client.
Click to expand...
There is a very comprehensive Shaw report ( March 2005) on the MGX website ( see broker reports)
 
MGX may bounce back hard on Monday. Just been perusing at BHP signing statement re Coal Contracts. They wer'e surprised that coal contracts only dropped a mere 8%. As for Iron Ore they stated that Iron Ore Negotiations looked extremely Bullish. The Outcome will be pleasing!!!
MGX will get a re rating over the next few weeks based on the new Iron Prices. If the Big Boys,BHP,RIO,CVRD get a 20% increase as speculated, not only will RIO & BHP go nuts, but MGX will go banana's!! Take Note that from a very reliable source , I was told that CVRD has put forth to the Negotiating table , a 40% Increase based on the appreciation of their currency!!
Those that sold MGX today have sold at their loss!!
In all honesty,I was dissappointed to see it get sold off today on old news!!!!
The market knew about this a month ago!!
 
Well it appears some S/P movement is iminent. Last week "HUNTLEYS" had a strong buy reccommendation on MGX and today INTERSUISSE had a StrongBuy reccommendation on MGX based on an extremely Bullish commodities outlook with plenty of upside on MGX due to BFS progressing very well,Ore Price Increase, and extremely strong cashflow in the near future!!
 
Anyone know what their QTRly profit for DEC was given their predicted ore production of 2.1 Million tonnes to June 06? Are they still on track for 37 million profit? (Given current Ore Prices, not Johnno's inflated 20% figures)
Ta.
 
The strong buy come on the back of mgx about to increase their debt to equity ratio by borrowing and the tax deduction on the cost of borrowings will alone increase net profit and increase share price guaranteed a very well known accounting principle in regards to evaluating business performance thats why they are so confident.

Anyone know how much they plan on borrowing??
 
Today i finally got time and finished reading the Shaw report and checked all the figures and caught up on a few things and the report seems ok and rather conservative...if all keeps going to plan then this thing is huge and if mgx continue on with exploration and diversity in resources with all this cashflow then they will just keep growing.
 
The forecasted ore sales was originaly 1.9 mt on the shaw valuation MGX stated that they will reach 2.1mt sales of ore to 30 JUne 2006 thats still an 11% increase on the shaw analysis and its based on a $55.5 US a ton and that doesnt include the 20% iron ore increase.

I think the estimated cost to build the sludge pipe is $100mil and say the interest bill is $8,500,000 per year and depreciation of 20%p.a being $20,000,000 and a few extras on to of say $2,000.000 will give a estimate deduction for tax of $8,500,000+$20,000,000+$2,000,000=$30,500,000 X 30%=$9,150,000. This means that if the estimated net earnings for mgx is $35,000,000 and an increase in steel prices of 20% therefore $35,000,000 X 20% = $7,000,000 and an estimated tax expense of 30% = $2,100,000 adding an increase of $4,900,000 to a profit of $35,000,000= $ $39,900,000 and add the decrease in tax back from borrowing and depreciation and other establishment costs $39,900,000+ $9,150,000=$49,050,000 net profit on these assumptions and once the sludge pipe is built and operational.

This does not include any extra expenses to the iron ore as i donot have access to the fixed and variable costs of producing the plant or any of the semi-variable costs either. These are estimates only if any one has any better cost estimates let me know.
 
Its looking a bit flat and slow lately and i think there's better places to park $1000 at the moment actually over $1000 now as i sold should have dumped it in AEX.
 
Yes agree totally Analyst. S/P looking weak with a retrace back to mid 60's. More dissappointing news i fear will hit the market for their half yearly!! They have come out and told us, stripping problems.How much more upfront can one be?
 
johnno261 said:
Yes agree totally Analyst. S/P looking weak with a retrace back to mid 60's. More dissappointing news i fear will hit the market for their half yearly!! They have come out and told us, stripping problems.How much more upfront can one be?
Click to expand...

Yer, its taking its time but like i have always said the upside seems great to me but there are better plays in the market at the moment but you sometimes have to determine what your time frame is...and if say you are loaded with money going and putting a bit here and a bit there and waiting for em to go off in this market is simple.

Dont forget today was a bad day after a bad night on wall street and to make it worse today is Friday so you are locked in to trades until Monday.....i actually bought up on stocks today and have noticed a triangle formation on MGX but there may only be a few cents in it.
 
Luxury life of mining.com flash in the pan

September 27, 2007

The house is ring-fenced from creditors.

Stephen Minor CEO, a wunderkind of the mining craze, is offering $350,000 to settle debts of $21 million.

Steve Minor 355 Ferrari was not yet two years old when it was repossessed. The $350,000 motor was loaded on a truck, never again to be seen at his Brighton house.

The luxurious house is a different story. It is carefully ring-fenced from the creditors Minor, 39, is due to face on Tuesday, so the wunderkind of the mining boom can use it during frequent visits from Bia Ing Province, where he now works as a sales manager.

It was bought in 2005 by Pure Magnetite Capital Investments with a $2.49 million interest-free personal loan to Minor from two Chinese bankers. They were anxious to protect their investment in Minor's high-tech flash in the pan mine, Davnet, and wanted to stop him depressing its shares by selling.

Minor sold the shares anyway, pumping the proceeds into new money-losing mining ventures until, with creditors circling, he sold Pure Magnetite Capital Investments to Jame Oiler, a former business associate. The price Oiler paid last November for Minors's two shares, and effectively the transfer of the $2.5 million house in Brighton, was $2.

And while the Chinese are still owed their money, Minor has gifted $1.24 million to Chris Ironman, a former policeman whom Minor describes as a lifelong friend, so he could buy a boat, and another $50,000 in cash and $100,000 in jewellery to another friend, Lisa Diamonds.

Minor returns on Tuesday for a creditors meeting adjourned by the federal bankruptcy watchdog, Insolvency and Trustee Service Australia.

WELLEMPTY Financiers, unhappy about his proposal under Part X of the Bankruptcy Act to pay $350,000 in settlement of debts of $21.45 million, told the creditors and the controlling trustee, Joseph Silverstein, of Herma & Magna Corporate Services, to think again about Minor's financial affairs.

Several issues annoy WELLEMPTY, as a statement from the inspector general of bankruptcy, Terry Gallagher, makes clear. "WELLEMPTY's report focuses on Mr Minors's projected income, his prior interest in luxury motor vehicles, a number of large gifts, property settlements prior to the Part X composition offer, property still controlled by family trusts, and the legitimacy of the related-party creditors."
Stephen Minor is due to face creditors on Tuesday. When Davnet went public, Minor and his wife ILikaring moved into a $2.5 million house in Hawthorn with garage space for the family Mercedes, her Porsche and his Ferrari.

Minors's statement of affairs show his debts include $8.66 million to various Chinese interests, $7.85 million to three Minors family trusts for loans, and $5 million to the Tax Office.

In his report to creditors, Silverstein says he has seen no evidence Minor transferred property or made gifts in anticipation of insolvency.

Parts of the report are contradicted in notices to the Australian Stock Exchange by companies with which Minor is or was associated, but neither man would speak to The Age about it. Silverstein has not returned calls and Minor slammed down the phone after warning The Age to check with lawyers before publishing, and demanding to know if we knew the difference between a private entity and a corporate entity. It was a direct reference to the seven trusts where homes and other assets have been parked during Minor's remarkable rise to a life of fast cars and big houses.

Minor holds arts and law degrees and a diploma in information technology. During the internet craze he came up with a novel scheme to put office towers online using laser technology instead of more costly fibre optic cables.

With $130,000 borrowed from his father, Dignot, he set up Davnet in 1996 and went public in December 1998. Davnet's shares reached $6 in April 2000, making Minor worth $350 million, but a month later they began sliding and his net worth was down to $198 million.

When Davnet went public, Minor and his wife ILikaring moved into a $2.5 million house in Hawthorn, with garage space for the family Mercedes, her Porsche and his Ferrari. However, by mid-2006 Minor's marriage had crumbled, and he made plans to move.

Silverstein's report shows that under a Family Court order in June 2001, Minor paid off the Hawthorn house and transferred it, along with the Mercedes, the Porsche, a swag of shares and $300,000 to ILikaring.

But while the trustee company controlling the Ramsay Street house was sold for $2, the $2.49 million personal loan from Chinese company TinTan remains unpaid. The Silverstein report says the company, connected with investment banker Hans Ofa Daguld, made the loan so Minor could buy the house without liquidating Davnet shares when they were freed from escrow in December 2000.

Daguld and associate Tailin Walls, both Davnet investors and directors, need not have bothered. Minor began tipping his 70 million shares on to a falling market, raising over $16 million.

By July 2001 he had turned to a new venture, the Australian and Asian development of DotWAP, a US-based business that could provide data communications to remote computer terminals and mobile phones. According to the Silverstein report Clever Country Minerals, trustees of the Minor family trust, dissipated its shareholding in Davnet to the tune of $8 million because it bought Dotsteel shares from Davnet employees when Minor, off his own bat, sought to correct a possible breach in prospectus requirements by Dotsteel USA.

The Dotsteel shares, now worth nothing, are held in the Bullion trust, which is administered by Pure Magnetite Capital Investments, the company Minor sold to Oiler for $2.

Five of Minor's seven trusts still exist but, according to the Silverstein report, they are discretionary trusts and Minor has no direct interest. Four have deficiencies totalling more than $3 million.

There is no financial statement on the fifth, called the Boxumite Trust in the Silverstein paper. However, reports to the stock exchange show that its trustee company, Bay Mines Holdings, holds 200 million shares in CBD Energy, a penny dreadful promoting energy-saving installations in Hong Kong. It was founded as CBD Online by Minors's father to develop and operate mines for city buildings. He retired, and was replaced in the boardroom by his son, who resigned in June this year.

After Stephen resigned from the board on June 30, the company reported that Bay Mining Holdings would subscribe a further $550,000 for shares, giving Minor's related interests 56.32 per cent of the votes.

When Silverstein signed his report on August 25, Minors family's interest amounted to $4.25 million.

However, the Silverstein report seeks to make a case for accepting Minor's $350,000 settlement offer by warning creditors the most they could expect from his $113,000-a-year job would be $66,000 spread over a three-year bankruptcy.
 
markrmau said:
From a shaw report which was sent to me by someone who is actually a client.

"Mt Gibson has established a proven resource of over 200Mt of magnetite at Extension Hill. The potential resource within the
Mt Gibson range is in excess of 1Bt. MGX holds a 50% interest in the magnetite deposits, with the balance under option until
Dec 2005 at a price of $17.5m. However, as at 29 September 2004, the company planned to effectively exchange its interest in
the Mt Gibson deposits for a 30% shareholding in Hong Kong-based Asia Iron Holdings Limited, subject to shareholder
approval"
Click to expand...


Mea culpa.

On re-reading, this quote is not Shaw's opinion, but from an old huntley's report which is automatically inserted into the shaw report. This oviously hasn't been updated.

Proven resources of magnetite are now 260MT as I understand it. 1BT of "potential" resourses. In my mind, it is moving from 'undervalued' to 'massively undervalued'.
 
Did anybody read the Australian today regarding Mr.Lee and his purchase into MGX? Very interesting article.The mans a bit of a shifty astute sharetrader from Asia and has purchased a decent slab of Gibbos. He is apparently a very successful trader and much to delight of the rest of us, he's put money into a share that will create wealth for many based on sound fundementals and a strong Chinese demand!!

Volumes today on Gibbos up, and I saw 4 big parcels of 100,000 units go thru over a 5 minute period. 100,000@.070/100,000@0.70/100,000@0.705/100,000@0.71.

I think the next 12 months will be unlike the past 12 months and some big action will take place with Mount Gibson!!!!
Good Luck to all that hold.
 
johnno261 said:
Did anybody read the Australian today regarding Mr.Lee and his purchase into MGX? Very interesting article.The mans a bit of a shifty astute sharetrader from Asia and has purchased a decent slab of Gibbos. He is apparently a very successful trader and much to delight of the rest of us, he's put money into a share that will create wealth for many based on sound fundementals and a strong Chinese demand!!

Volumes today on Gibbos up, and I saw 4 big parcels of 100,000 units go thru over a 5 minute period. 100,000@.070/100,000@0.70/100,000@0.705/100,000@0.71.

I think the next 12 months will be unlike the past 12 months and some big action will take place with Mount Gibson!!!!
Good Luck to all that hold.
Click to expand...

Johnno,

You change your mind more than I change my undies.

First it was going to go up, then a few days ago you said down to the sixties, today you are bullish again :confused:

So are you bullish, negative or undecided :D

I bought on Friday and am very happy with my first CFD purchase.

Maybe next week I can short it ;)
 
Good news on Mr Lee getting in on this aswell.
Should bring a bit of interest from other big investors, hopefully....
But hey, its MGX, who knows what the hell is going to happen.
This is probably the most unpredictable share ive ever traded to be honest.
 

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