MGX - Mount Gibson Iron

chicken said:

and you ,who, is not a broker,and just trades shares tells us we are wrong..

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Right or wrong doesn't come into it.

I look to invest in well run companies. A company where there is clearly a partially informed market does not fit my definition of a well run company. It may well go to $1.5 in about 12 months, but I will probably sell when this current run ends.

markrmau said:

Right or wrong doesn't come into it.

I look to invest in well run companies. A company where there is clearly a partially informed market does not fit my definition of a well run company. It may well go to $1.5 in about 12 months, but I will probably sell when this current run ends.

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If you sell or buy..who cares as far as a well run company..well did you notice how much money they are making and the CHINESE who have been adding to their stake quite heavily..and you are talking of selling..quite frankly..WHO THE HELL CARES.....I am not, as I think out of the square..the Chinese do as well...and the SP is starting to move..as I said buy FMG or CAZ...which have NO production..but look at the SP.....now go and sell so other people will get the benefit of your shares....give us some positive input than you dont like this or that....WHO cares I dont as I know I am on the right track....like ZFX, SBM and now MGX they are all winners...as far as the company is concerned...they are running it at a good profit..and now ramping up production...well I bet you could not do better....as far as the Shareholder is concerned...MGX has a girl which now gives out more information re the company....its all go in this company and $1 is not far off sellers are drying up....and watch tomorrow when we get the price for iron ore..I hear it could be as high as 27.5% which is huge....So how about something constructive rather than just negativity.....from you

Chicken,

I don't think markmrau's comments were meant personally. If you think you are on the right track then hold on to those shares. But be cool

wayneL said:

Chicken,

I don't think markmrau's comments were meant personally. If you think you are on the right track then hold on to those shares. But be cool

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I know they were not meant personally..but how can a share trader decide if a company is run well or not..because the shareholders are not advised all the time when something happens..I rather have they make $$$ which they are..and in todays Age information is readily available for everyone to see..after all the managers are busy as lots of work has to be done..and by the looks of things its being done real well...Wayne you live in Geraldton you would see how active the miners are there...the harbour etc....and I know they fell down only in the information to the shareholders..but...they are bringing home the bacon..now that is important to all of us shareholders..I said its a winner....well I can only judge the company on their performance,....and they are performing

chicken said:

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

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Today or monday the new iron ore price will be known...now I wonder what the new price will be but whatever it is..its going to propel MGX SP upwards...have a look at the GOLD price...WOW...now we wait for the FE iron ore price......maybe another WOW...the only thing is our purchase price will go up for EVERYONE.....what more can I say ,but, it also will reflect in the SP...up.....

MGX has certainly had a big run recently, and according to my very basic Elliot wave count has reached my target.Still rising on very good volume so I think tightening those stops and see what develops is in order.

The only downside that I can see is if price negotiations drag on with the Chinese, which from one report I read could happen.

Still been my best performer by far recently.

Hi, I am a long term holder, accumulating since around 10 cents, averaging up and bought more at 86.5 today (hmm?), still very confident but would like to see iron ore negotiations completed. Chinese Premier said today market forces should prevail which is good news and should smooth the way for a speedy resolution.


AFX News Limited
China to get iron ore from NKorea - report
04.03.2006, 03:25 AM

BEIJING (AFX) - China will look to North Korea to diversify and expand its supply base of iron ore, Steel Business Briefing reported, citing a source close to the matter.

It did not provide further details.

China has been looking to increase its suppliers of iron ore beyond the world's three largest miners, which currently account for some 70 pct of China's imports of the commodity.

Baosteel, representing the Chinese steel industry, has been in talks with Australia's BHP Billiton Ltd, Rio Tinto Group, and Companhia Vale Do Rio Doce since late last year to set iron ore contract prices for the year to March 2007.

While China has been calling for a cut in 2006 iron ore prices, the three mining companies have been seeking increases of at least 20 pct over last year, analysts said earlier.

Baosteel's recent price hikes are putting pressure on China's steelmakers to agree to an increase in iron ore import prices in the ongoing negotiations, the report said.

Earlier this month, the Ministry of Commerce said it 'will watch closely the progress of the iron ore price negotiations. If an unreasonable price that is unacceptable to the Chinese side (is) put forward, the Chinese government (will) adopt necessary measures to keep the interests of the country and its enterprises from being damaged.'

Chinese Premier Wen Jiabao today said in Australia that iron ore prices should be negotiated between suppliers and steel mills on a commercial basis.

and this from another site, a good overview of where MGX is at....April is a big month in the history of the company...good luck to holders

==========================================================

CHINESE FACE DECISION OF JOINING IRON ORE PROJECT THIS MONTH

Sydney - Monday - April 3: (RWE Aust Business News)

***************************************************

OVERVIEW

********

This is an important month for Mount Gibson Iron Ltd (MGX) because Chinese steel manufacturer Shougang has until April 30 to decide whether to participate in the Extension Hill magnetite project and become a 50/50 JV partner.

If it eventuates, and is highly likely as the feasibility study is looking good, MGX ownership will be diluted to about 37.5 per cent and Shougang will take a 15 per cent interest in MGX at 75c and will be required to inject $174 million into the project.

Shaw Stockbroking suggests Mt Gibson stock is a buy, saying that in light of the very tight WA labour and construction market it believes it is unlikely the company would commit to development within the next six months and will not do so until it can lock in a fix price offtake agreement with its JV partner to offset the substantial capital risk.

The broking firm believes the group/JV aim is to progress the project to a point where it is ready to hit the go button when a cool-down in the WA construction market appears and fixed contractors' costs can be locked in.

Concurrently or pre-empting this development may be the commencement of construction of the Nanjing pellet plant, which offers strong margins in the current environment even if feed is sourced from third parties.

Meanwhile, Mount Gibson announced it has settled a dispute with its crushing contractor and has subsequently purchased the equipment.

Whilst no details were divulged analysts believe the cash outflow to MGX is a couple of million dollars.

The next and more important item announced was the arrival of 34 rail wagons which will enable the group to complete its production ramp up to three million tonnes per annum (mtpa).

The wagons are undergoing commissioning and should be in service from late April.

SHARE PRICE MOVEMENTS

*********************

Shares of Mount Gibson on Friday edged up 1.5c to 83.5c. Rolling high for the year has been 90c and low 43.5c. At one stage the Ferret drew traders' attention to the company's ties with the Chinese when the shares were selling a little above 20c.

Mount Gibson has purchased the crushing facility and associated plant and equipment at its Tallering Peak operations from Rapid Crushing and Screening Contractors (Rapid).

The purchase of the facility reduces the risks associated with installing a replacement contract crushing plant as the operation moves to 3mtpa production rates.

The purchase of the crushing facility has significant operational and financial advantages to any alternatives available within the current industry environment.

All disputes between Rapid and MGM have been resolved.

The Tallering Peak rail wagons, due for delivery from China, arrived in Geraldton on March 13.

The 32 wagons are currently undergoing operational readiness testing and will be available for haulage in late April as scheduled.

Mount Gibson Iron reported a net profit after tax of $22.1 million for the six months to December 31.

It was the first time International Financial Reporting Standards were applied to the company's results.

The company has recently developed a sustainable life of mine operating plan for the Tallering Peak hematite operation, which involves the development of the T6 orebody and a major cutback of existing pits.

As previously reported in December, a consequence of the cutback and the development of the T6 pit will be reduced ore production and grade for the six months to June, which will affect both cash flow and profitability for the period.

However, as a result of recent developments, the Tallering Peak operations will be in a position to achieve the forecast production rate of 3mtpa from June and will be well positioned to take advantage of increased production volumes whilst iron ore prices remain historically high.

BACKGROUND

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Mount Gibson Iron was established as a specialist iron ore exploration company in 1996 and listed on the Australian Stock Exchange in January 2002.

It was formerly Whittakers Ltd.

A series of capital raisings since then have permitted the company to begin the progressive development of iron ore hematite deposits in the midwest region of Western Australia which it owns, controls, or over which it holds mining rights.

Mount Gibson's first mine at Tallering Peak commenced exporting direct shipping grade hematite to China in February 2004 and is currently operating at 2mtpa with plans to expand to 3mtpa by June.

The company's current focus is on the development of a mine at Extension Hill, in the Mt Gibson ranges, to produce 5mtpa of magnetite concentrate as feed for pellet production in China.

The company has a 71 per cent shareholding in Asia Iron Holdings Limited, a Hong Kong-registered company.

Subject to completion of a feasibility study and project financing will develop the Extension Hill mine in a 50:50 joint venture with the Shougang Group. Asia Iron will separately build and own a 2.5mtpa pellet plant in China

There are Tallering Peak (hematite) with a reported mine life of eight to 10 years; Mt Gibson (magnetite and hematite) on a 10-year life line and Koolanooka South.

Exports of the company's iron products will be made through the Port of Geraldton where a $100 million dredging and facilities upgrade is nearing completion.

Solid buying at 88cents now...news will not be far of.......$1+ here

it was really encouraging today chicken, I have been watching trading in MGX really closely the past couple of weeks...probably too closely and every time it threatened to break out it would be capped by a solid sell order and quiet accumulation on the buy side would take place. At lunch today a big order went in at 86c, leapfrogged by 86.5, then 87 all the way to 89.5 cents, and took out heaps of sellers at each price. It smacked of panic buying, or at least indiscriminate compared with recent activity, hoping it points to an announcement just around the corner and they were desperate to get set -- finesse went out the window.

Maybe that is wishful thinking. Still, if the deals with the Chinese go ahead (magnetite and / or pellet plant) it will smash through $1.00 I have little doubt, and then we still have the iron ore price negotiations to be finalised too.

I am very optimistic of good news after today's activity.

Broadside said:

it was really encouraging today chicken, I have been watching trading in MGX really closely the past couple of weeks...probably too closely and every time it threatened to break out it would be capped by a solid sell order and quiet accumulation on the buy side would take place. At lunch today a big order went in at 86c, leapfrogged by 86.5, then 87 all the way to 89.5 cents, and took out heaps of sellers at each price. It smacked of panic buying, or at least indiscriminate compared with recent activity, hoping it points to an announcement just around the corner and they were desperate to get set -- finesse went out the window.

Maybe that is wishful thinking. Still, if the deals with the Chinese go ahead (magnetite and / or pellet plant) it will smash through $1.00 I have little doubt, and then we still have the iron ore price negotiations to be finalised too.

I am very optimistic of good news after today's activity.

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Now going through at 90.5cents....a $1 is not far off...might hit that way today...or we be hitting it ...next week.....$1+..........

Hmmmmm lets see how many can jump on a speeding train one of the advantages getting on at a train station : go you good thing

cheers laurie

laurie said:

Hmmmmm lets see how many can jump on a speeding train one of the advantages getting on at a train station : go you good thing

cheers laurie

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I agree laurie, walking on at the station is alot less painful than jumping onto it while its just got going. Too bad it took so long to leave the station though...

nice to see a mad scramble for stock isn't it when we are already set with comfy seats in 1st class they can sit on the roof

el_ninj0 said:

I agree laurie, walking on at the station is alot less painful than jumping onto it while its just got going. Too bad it took so long to leave the station though...

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I agree, it took a while looking good for next week...$1+.........

el_ninj0 said:

Too bad it took so long to leave the station though...

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Well ei_ninj0 there was no excuse[not you] not to jump on! of the things it took me a long time to learn in dealing with stocks is PATIENCE it will reward you in the end

cheers laurie

Sold at out at .87 yesterday (previous resistence line in Dec before its crash) looking like a very bad decision today today.... should of sold my bloody MAP instead!!!
Ah well- hindsight is 20-20-

Kipp said:

Sold at out at .87 yesterday (previous resistence line in Dec before its crash) looking like a very bad decision today today.... should of sold my bloody MAP instead!!!
Ah well- hindsight is 20-20-

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Investing (trading if you prefer) is most profitable when done strategically and fundamentally.
In MGX's case the "strategics" are compelling: Chinese need iron ore and want to get it as cheaply as possible. So buying into a small producer with expansionary plans is a better proposition than getting screwed by BHP/RIO every year that ore prices are renegotiated.
Fundamentals are two pronged for MGX: The company's returns in the second half will be compelling, while demand for its products are both robust and likely to have price upside in the near term, and comparative stability in future years.
If you have a look at Oxiana's chart a year or so ago, you will see a similar trend in that the stock went nowhere for while, although all the time the company was ramping up its production. Ultimately this flows into the company's bottom line and the market "sees" value in the stock. In fact the "value" was always there if one cared to look.

FMD!! MGX hit by a price query by the ASX this evening where were the prick$ when the price was being played around by certain investors give me a f%^k break :swear: :swear:

cheers laurie

laurie said:

FMD!! MGX hit by a price query by the ASX this evening where were the prick$ when the price was being played around by certain investors give me a f%^k break :swear: :swear:

cheers laurie

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Laurie
ASX price queries are great news in this case as investors will be "looking" for something from the company.
I think the share price momentum for iron ore producers has simply flipped north with mooted higher ore prices - unfounded rumours?
In any event, MGX has a "darling" status amongst the juniors and needs very little good news (or no bad news) to keep it ticking along.
Don't get angry, get more - MGX that is!
The dollar price barrier should crumble decisively in the weeks ahead.