MGX - Mount Gibson Iron

[chicken]

I have posted in one of my posts that MGX found a huge deposit in their joint venture in the Kimberleys hope some of you read it MGX is the largest shareholder in RMC and it looks as if the big guns from SA ...Oppenheimer and his cronies are after some of the action..I can only see MGX going higher as the CHINESE from Hong Kong are buying actively as they know a good thing..see company report..and the Shougan as soon as they put their money up for the 20 million shares..I can see a $1 as Huntleys have a valuation of $1.19 and that is without their holding in the Kimberleys..the Chinese see value here I just dont understand the Aussie punter as they offer $2+ for CAZ..a non producer,and for FMG its even higher while MGX are producing and all falls into place...and posters ask questions as before just makes you think why people dont research their subject.....As soon as Shougan has finalised all deals in April you will find this sp A LOT DIFFERENT AND IT WILL HAPPEN OVER NIGHT....

 

[el_ninj0]

KEEP dreaming..below 65cents you are a joke...

first post chicken, , go easy mate.

 

[chicken]

I have posted in one of my posts that MGX found a huge deposit in their joint venture in the Kimberleys hope some of you read it MGX is the largest shareholder in RMC and it looks as if the big guns from SA ...Oppenheimer and his cronies are after some of the action..I can only see MGX going higher as the CHINESE from Hong Kong are buying actively as they know a good thing..see company report..and the Shougan as soon as they put their money up for the 20 million shares..I can see a $1 as Huntleys have a valuation of $1.19 and that is without their holding in the Kimberleys..the Chinese see value here I just dont understand the Aussie punter as they offer $2+ for CAZ..a non producer,and for FMG its even higher while MGX are producing and all falls into place...and posters ask questions as before just makes you think why people dont research their subject.....As soon as Shougan has finalised all deals in April you will find this sp A LOT DIFFERENT AND IT WILL HAPPEN OVER NIGHT....

Ticker of RMC is RMI

 

[el_ninj0]

Looks like someone is attempting a sell off at the moment, trying to take advantage of the stronger buying position. Looking slightly stronger today though which is good. I'd say its because of the news about RMI, but i could be wrong...

 

[chicken]

Looks like someone is attempting a sell off at the moment, trying to take advantage of the stronger buying position. Looking slightly stronger today though which is good. I'd say its because of the news about RMI, but i could be wrong...

No one wants to sell off, its capped by the Hong Kong Company so they can pick up more cheap stock as soon as it rises they sell shares so others jump on and the CHINESE buy..

 

[el_ninj0]

Little bit of hope today, higher than usual volume and up 2.5cps. We are going to need alot more than that to make a buck though. RMI not doing so well today though. Its running on hype of the chinese buyers though so i didn't think it would last too long.

 

[chicken]

Little bit of hope today, higher than usual volume and up 2.5cps. We are going to need alot more than that to make a buck though. RMI not doing so well today though. Its running on hype of the chinese buyers though so i didn't think it would last too long.

Now that its confirmed with steel prices rising..Chinese considered, MGX will finally go up in SP....this stock is undervalued. Huntleys valuation is $1.19 so it looks we are heading that way..finally..still cheap at 72cents

 

[stockGURU]

Looks like the Iron ore contract negotiations are about to conclude and it seems like good news might be on the way for producers, including MGX.The Chinese blinked first.

FOCUS:Iron Ore Price Hike Imminent As China Eases Stand

By Glenys Sim

Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--The long drawn iron ore term contract negotiations may soon conclude and will very likely result in another round of price increases as China appears to be retreating from its earlier opposition to any increase this year, analysts said Thursday.

After three rounds of talks failed to resolve the deadlock, China's Shanghai Baosteel Group Corp. (600019.SH), representing the country's steel makers, will hold the fourth-round next week, the state-run Xinhua news agency reported Wednesday.

More significantly, the Chinese government will stay away from these negotiations and let the markets decide the price, Xinhua reported, indicating some increase in prices may be necessary for any timely decision on the term contracts.

"The Chinese government has expressed its concern, but will not intervene in the negotiations," the Xinhua report said, quoting a source familiar with the talks. "The price details will still be negotiated by the industry alone."

Baosteel is negotiating with Australia's Rio Tinto Group (RIO.AU) and BHP Billiton Ltd. (BHP) as well as Brazil's Companhia Vale do Rio Doc (RIO). The world's three largest producers together account for about 70% of global iron ore export sales.

Market observers expect 2006-07 iron ore prices to rise by 10%-20% over 2005-06 prices, which had already seen a hefty 71.5% rise from 2004-05 levels. New one-year term contracts are due for renewal from April 1.

After taking a tough stand during the previous three rounds by banning smaller steel mills from directly negotiating with suppliers, the Chinese government seems to have slowly come round to the idea of higher prices, given the ongoing tightness in global supply of iron ore and the country's huge appetite for steel, analysts said.

"In terms of being able to dictate prices, iron ore producers will continue to have pricing power until supply moves into a surplus position, which is unlikely in the short term," said National Australia Bank mineral economist Gerard Burg.

Shares of BHP Billiton and Rio Tinto were both higher by nearly 2% in early Australian trading Thursday as market participants factor in the impact of a price rise. "A few weeks ago, people were saying they would be lucky to get an increase, and now they are obviously going to get (a) 15%-20% (raise)," an institutional dealer in Sydney said.

Left With Little Choice On Raw Materials

Market participants say China's easing stance is not surprising, given its huge requirement for the raw material, used to produce steel.

In a speech at an industry gathering Wednesday, Sam Walsh, chief executive of Rio Tinto's iron ore division said he sees continuing "strong" demand for iron ore from China for many years to come.

China imported 51.47 million metric tons of iron ore during the January-February period, up 31.9% on year, according to latest Customs data.

With such strong demand, mineral and metal prices will remain above their long term trend for some time to come, Walsh said. "It is far, far, too early to suggest that the current commodities cycle has peaked."

Not surprisingly, far from being an asset that will help it dictate prices, China's huge dependence on imported iron ore is still a liability that makes the country vulnerable to the pressures of the market.

"China has built up massive capacity for processing commodities. The sunk cost inside China has made it more vulnerable to price squeezing pressure in the commodity market," Morgan Stanley analyst Andy Xie said in a recent report.

According to the National Development and Reform Commission, or NDRC, China had an installed capacity to produce 470 million tons steel in 2005, with another 70 million tons in the pipeline, although utilization was much lower.

Actual steel production is expected to hit 390 million tons this year, up 10%-15% from 2005.

"If the negotiation drags on or even lead to trade disputes between China and iron ore exporting countries, this could result in a shortage of iron ore in China and slow steel production growth, resulting in higher steel prices," said JP Morgan analyst Feng Zhang.

To Influence Future Govt. Role In Price Talks

If the settlement indeed leads to higher prices, it may have a lasting impact on any government role in future price negotiations for scarce raw materials which China buys in large quantities.

Many fear that if China succeeds in avoiding a price rise this time, it could result in the government taking a more aggressive role in future negotiations.

Japanese steel makers have traditionally led annual iron price negotiations in the past, but China, which imports nearly half of world's iron ore output, decided to muscle in this year, following the sharp rise in prices last year.

"China is playing hardball... by limiting what importers can pay. This is the first step by China to limit commodity prices. We believe China will likely develop a comprehensive strategy to deal with commodity prices," Morgan Stanley's Andy Xie said.

But indicating the government's loosing grip on negotiations, the China Securities Journal Tuesday said iron ore prices could rise 5% to 10% this year. China's state-controlled media had earlier mostly echoed steel makers' calls for a reduction in prices.

The report followed comments by a top Chinese economic planner that the government would not interfere in ongoing negotiations.

"The government will not interfere. This price will be decided on the basis of market and enterprise negotiations," Ma Kai, head of NDRC, the country's top economic planner, said Friday.

Ma's remarks came two days after NDRC and the Ministry of Commerce jointly issued a statement saying Chinese steel and iron enterprises are facing many problems, making it difficult for them to accept another price increase.

But market participants say it is hard for the Chinese government to intervene because of its World Trade Organization obligations.

"Factors that make it hard for China's government to intervene include WTO obligations and wanting to avoid trade friction with Brazil and Australia," said Australia-based metals consultant Michael Komesaroff of Urandaline Investments.

http://sg.biz.yahoo.com/060323/15/3zklb.html

 

[Kipp]

It doesn't quite make sense to me how Steel Prices are heading downhill (along with Bluescope) yet iron ore is set to move +10-20%? I suppose the big issue here is that China has the capacity to produce Steel (and hence the massive surplus or "glut") but not iron ore? Is that it?

 

[chicken]

Looks like the train is starting to leave the station and all aboard who want to go for the next ride up....took a long time as the broker who buys for the Hong Kong has been busy in building a substantial stake in the company...I think from memory about 10%.....looks all great so far for April.......and looks as if a small increase to 10% will happen in the iron ore price..nice for MGX..good luck to all holders..I am holding.....

 

[chicken]

Looks like the train is starting to leave the station and all aboard who want to go for the next ride up....took a long time as the broker who buys for the Hong Kong has been busy in building a substantial stake in the company...I think from memory about 10%.....looks all great so far for April.......and looks as if a small increase to 10% will happen in the iron ore price..nice for MGX..good luck to all holders..I am holding.....

Watch as we get the price update for iron ore,mgx will go quickly over 80cents....why do people sell a stock which will rise very quickly from here..got me beat....I am holding like the Chinese I SEE VALUE HERE....comments

 

[TjamesX]

It doesn't quite make sense to me how Steel Prices are heading downhill (along with Bluescope) yet iron ore is set to move +10-20%? I suppose the big issue here is that China has the capacity to produce Steel (and hence the massive surplus or "glut") but not iron ore? Is that it?

I think the this is a unfortunatly a function of steel being a 'manufactured' product. And anything that is 'manufactured' is being done by China. But Iron Ore comes straight out of the ground.... and China needs it to make its steel.

 

[chicken]

Looks as if my prediction are coming to bear fruit anyone who bought will come into a windfall...all good news for this stock..Railwagons are delivered and hauling ironore,,,,also it looks as if there are more than one company to join the venture....so looks as if we shareholders who held are getting their rewards after all....so good luck to all shareholders who held as the weakhands sold out....as Huntleys valuation is a lot higher..also see Bell Potters latest report...www.mtgibsoniron.com.au its all there for everyone to read..this will be another winner for sure

 

[chicken]

Looks as if my prediction are coming to bear fruit anyone who bought will come into a windfall...all good news for this stock..Railwagons are delivered and hauling ironore,,,,also it looks as if there are more than one company to join the venture....so looks as if we shareholders who held are getting their rewards after all....so good luck to all shareholders who held as the weakhands sold out....as Huntleys valuation is a lot higher..also see Bell Potters latest report...www.mtgibsoniron.com.au its all there for everyone to read..this will be another winner for sure

Looking good...how high will the iron ore be priced from the 1st of April...I would say between 18% and 20%...will make MGX very attractive....And Shougan wants in and wants 20million Shares at 75cents...and the Chinese will have nearly 30% of all shares then..its getting interesting..lots of buyers.....

 

[TheAnalyst]

Its good to see mgx finally get moving and the trains arrive but for me it is a bit to much of a wait from January to basically April to get 10-20%

 

[el_ninj0]

Its good to see mgx finally get moving and the trains arrive but for me it is a bit to much of a wait from January to basically April to get 10-20%

You would turn down 20% profit in 3 months??

I know i wouldn't.

 

[Mumbank]

I agree el ninjo I thought it was about making profit and 20% ain't bad for 3 months- we may even get more than that!!

 

[Mumbank]

Finally, a positive announcement on rail waggons and crushing plant. Perhaps they have employed a media manager!!

 

[markrmau]

I'm thinking of ditching this company as it obviously leaks like a bloody sieve.

Dec last year it was going down at least 2 weeks prior to the bad announcement. This time it started going up a week before the good announcement (they even had photos of the bloody rail cars on HC yesterday).

That is not my definition of a well run company.

 

[chicken]

I'm thinking of ditching this company as it obviously leaks like a bloody sieve.

Dec last year it was going down at least 2 weeks prior to the bad announcement. This time it started going up a week before the good announcement (they even had photos of the bloody rail cars on HC yesterday).

That is not my definition of a well run company.

yeah, whatever....but they are ramping up production..in other words making $$$$..the Iron ore will go up in price next week...the railwagons are there..they got their own crushing plant installed...and Shougan looks as if its going to go ahead with buying of shares..there are others who now want to take this stake and you are telling us we are all wrong..well as long as you believe what you think..thats important...so buy CAZ...no tennament no production but over $2....this is a crazy world.....but Huntleys and brokers are giving us a valuation for over $1..and you ,who, is not a broker,and just trades shares tells us we are wrong..well, dont buy, there is more for others who see an undervalued stock with a great potential..go to www.mtgibsoniron.com.au and make your own research....as this stock is undervalued......IMHO