Australian (ASX) Stock Market Forum

MGX - Mount Gibson Iron

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Porper said:
I sold out early last week but bought back a few on Thursday only for the price to gap way below my stop, so lost out this time.Still been a excellent trade over all.

Thinking seriously about shorting this stock now after the terrible results, see how Monday goes but I feel the tide has turned now.
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Porper..be careful here in shorting as you could lose your money....CHINESE are buying heavily into this group...and IRON ORE price should be known soon....so I think long is the way to go....will be over $1 soon...as soon as iron ore price is known all steel..or iron ore producer will rise including MGX....MGX have stockpiled $20 million of iron ore which will be mixed with other iron ore...and MGX are now crushing their own ore....company progressing further...next quarter will be big surprise....will rerate company... :D
 
MGX announced it has settled a dispute with its crushing contractor and has subsequently purchased the equipment. Whilst no details were divulged we 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 3mtpa. :D :D :D

cheers laurie
 
laurie I think this dates back to March, it is good news but old news.....I am getting a bit jittery with the weakness on the back of the quarterly but putting it in perspective it has delivered over the last 3 years and has had a great run...I just want icing on the cake with the pellet plant and hopefully the magnetite project. I have read one analysis (might be Bell Potter) that it represents fair value now based on its current projects with a "free" option for these other blue sky projects which would add significant value.

But hey I want it all, want to see it keep rising NOW :p:
 
laurie said:
MGX announced it has settled a dispute with its crushing contractor and has subsequently purchased the equipment. Whilst no details were divulged we 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 3mtpa. :D :D :D

cheers laurie
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Sounds like a great news!!

:)
 
this is definitely old public information so it is factored in the price, but I cannot find the source from any MGX announcements. I can't recall where this information first appeared.
 
Hmmmmm I never known Shaws to post old news! then again it was news to me so I posted here sorry if it's old news :(

cheers laurie
 
laurie said:
Hmmmmm I never known Shaws to post old news! then again it was news to me so I posted here sorry if it's old news :(

cheers laurie
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You are right there.....MGX are doing their own crushing and ramping volume up.....they purchased the equipment as it is less expensive to do their own...also the CHINESE in Hong kong HAVE INCREASED their shareholding and are still very actively buying more..Shougan has to decide this month what they are going to do and my feeling is that it will go ahead..as they need the ore to make steel..a win,win situation for Shougan...I still have 200k shares at 81cents....see Shaws,and Huntleys report..valuing the company between $1.25 and $1.45.....so I believe Shougan will join the party....IMHO :D
 
What is the lastest news in Iron Ore negoiations with the Chinese? Any agreement yet? Surely if the keep falling through and MGX sells at spot prices this can only be a good thing for profits (in the short term anyway).
 
Kipp I have read that if prices aren't finalised by June 30 many contracts expire and steel makers need to buy on the spot market which is 20% higher (and demand would drive it up even further)....so I think that is the absolute latest we would see the negotiations finalised. When a price is agreed it is backdated to the start of April.
 
yes laurie I heard that might be a possibility too....rather than a one year 20% rise (where the Chinese lose face) and then perhaps a flat price beyond, they could have a 10% rise in year one and a further 10% rise in year 2, a 2 year contract. This would give producers and steel makers more certainty with forward planning and would enable each to claim a win in the negotiations.
 
Broadside said:
yes laurie I heard that might be a possibility too....rather than a one year 20% rise (where the Chinese lose face) and then perhaps a flat price beyond, they could have a 10% rise in year one and a further 10% rise in year 2, a 2 year contract. This would give producers and steel makers more certainty with forward planning and would enable each to claim a win in the negotiations.
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the Germans are paying 19% more to the South Americans in Brazil..looks as if the Chinese might have to pay the same...19% is great news for MGX...price started to move back up today.....finished at 87.5 cents..also the Chinese from HK are still actively buying and own now over 30%.....cheap at these prices.... :D
 
looks like Japanese have broken ranks too and dealt

Vale Wins 19% Japan Iron-Ore Rise; Pellet Price Falls (Update1)

May 17 (Bloomberg) -- Cia. Vale do Rio Doce, the world's largest iron-ore producer, said Japanese steelmakers agreed to a 19 percent increase in the price of iron-ore for 2006. The price of Vale blast-furnace ore pellets to Japan will fall 3 percent.

The price increases are for iron-ore and pellets from Rio de Janeiro-based Vale's Carajas, which ships through the port of Sao Luis, Brazil, and Southern, which ships through the port of Tubarao, Brazil, Vale said in an e-mail statement.

Vale, whose Brazilian mines are running at full capacity, had asked for a 24 percent increase to finance expansion. The company plans to spend $2.1 billion this year to expand iron-ore output, the statement said. The price agreed to in Japan is the same agreed to by TheyssenKrupp AG, Germany's largest steelmaker, on May 16.

Before the agreement with Japanese steelmakers was announced, Qi Xiangdong, the vice chairman of China's Iron & Steel Association, said his country's steelmakers would not accept the ThyssenKrupp agreement as a benchmark for world iron- ore prices. World prices would be set by Shanghai-based Baosteel Group Corp., Tokyo-based Nippon Steel Corp. and Luxembourg-based Arcelor SA, he said.

Chinese steelmakers are the world's largest consumers of iron-ore, the main ingredient in steel.

The major steelmakers are in talks with Vale, Rio Tinto Ltd. and BHP Billiton Plc., the three largest iron-ore producers. Last year, steelmakers agreed to a 72 percent price increase for iron-ore sold under long-term contract. Spot, or non-contract prices are higher.

The Vale agreement announced today is with ``the major Japanese steelmakers,'' Vale's press office said, while declining to name the specific companies.

The agreement with Japan and ThyssenKrupp are for prices FOB or ``free on board,'' meaning they include delivery costs from the mines to port where they are loaded on ships for export.
 
Can't help thinking the price is where it was in March 2005. Hopefully when the prices are renegotiated, things will be on the upward trend again.
 
shinobi346 said:
Can't help thinking the price is where it was in March 2005. Hopefully when the prices are renegotiated, things will be on the upward trend again.
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Appears MGX will again no longer be sub $1 soon. Price Increase will significantly change the bottom line forecasts,providing tonnage can get back on track!!
Expect to see revised valuation on MGX shortly!!
 
johnno261 said:
Appears MGX will again no longer be sub $1 soon. Price Increase will significantly change the bottom line forecasts,providing tonnage can get back on track!!
Expect to see revised valuation on MGX shortly!!
Click to expand...
Looks as if next week..will be announcement...still holding...should see this one go higher
 

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