MGX - Mount Gibson Iron

[jonnycage]

thanks @Trav. ! thought it went up a little to quick without much substance. more a hunch around $1, but that seems to be off the money today

 

[jjbinks]

Up 10% today

 

[The Triangle]

When 65% iron was $105/t the SP was $1.05
Now 65% iron is $125/t and the SP is $1.05

12 months ago a $1 move in the iron price (62% @ $55/t) equated to a $20m increase in the NPV. That roughly takes this mine to about an NPV of 1.25 billion as of a year ago - so now - with capex already spent, and a year less to discount - that gives me somewhere in the range of 1.7-1.9 billion in cash+NPV for the value of MGX (market cap is 1.2 billion). Likely iron won't stay at these levels for another 5 years, but even at $1.05 this is very undervalued. I still hold about 85% of my original shares. Won't sell anymore until this gets to the $1.40 range.

Another upside is that I recall that the reserves/resource was about 25 million tonnes before the wall collapse - it's only 21 million now - Will that 4 million tonnes from before now make its way in to the mix?

 

[jonnycage]

time will tell. happy to wait it out a bit yet

 

[jonnycage]

ships seem to be moving in and out of port, still strong Iron ore pricing. looking forward to some banked numbers

 

[jonnycage]

after an old fashion blood bath in July, perhaps the annual report in August will steady the ship

 

[jonnycage]

a solid quarterly Announcement.
• Quarterly sales revenue of A$122 million Free on Board (FOB).
• Solid operating cashflow for the quarter of A$25 million.

 

[sptrawler]

a solid quarterly Announcement.
• Quarterly sales revenue of A$122 million Free on Board (FOB).
• Solid operating cashflow for the quarter of A$25 million.

They are a company that flies under the radar a bit, are they still mainly operating in the mid West?

 

[jonnycage]

one of my picks for the yearly comp - Iron pricing pushing back up, plenty of cash on hand for acquisitions

 

[jonnycage]

Into the middle of 2021 the majority of the waste stripping will be complete, driving the all in costs down substantially. Shine project coming online shortly also.

 

[Telamelo]

Into the middle of 2021 the majority of the waste stripping will be complete, driving the all in costs down substantially. Shine project coming online shortly also.

Iron Ore price hits 10-year high on rising steel demand = bigger profit $$ for FEX & MGX as well as the big miner's of course.

Cheers tela

 

[Telamelo]

Iron Ore price hits 10-year high on rising steel demand = bigger profit $$ for FEX & MGX as well as the big miner's of course.

Cheers tela

$1+ party soon for MGX as quarterly scheduled by Wednesday 21/04/21

REWARDS
Trading at 85.8% below our estimate of its fair value
Revenue is forecast to grow +22.7% per year!

 

[Telamelo]

Iron ore price surges to 10-year high after Vale, Rio miss on output​

https://www.mining.com/iron-ore-pri...oving-steel-margins-and-disappointing-output/
https://www.mining.com/iron-ore-pri...oving-steel-margins-and-disappointing-output/

More bigger profits $$ for cash cows like MGX & FEX with their quarterlies due soon

 

[Telamelo]

Iron ore price surges to 10-year high after Vale, Rio miss on output​

https://www.mining.com/iron-ore-pri...oving-steel-margins-and-disappointing-output/
https://www.mining.com/iron-ore-pri...oving-steel-margins-and-disappointing-output/

More bigger profits $$ for cash cows like MGX & FEX with their quarterlies due soon

500K buy order steps up on the bid @ 0.875c this morning

someone wants in lol

 

[Telamelo]

MGX reported net profit (after tax) of $74.5M for 6 months ending 31/12/2020 and cash balance of $412M sitting in the bank!

Furthermore, they are on track to cash in on higher iron ore grades & reduced costs (better profit margins) during the second half of 2021

DYOR as always

 

[Telamelo]

China steel demand leaves iron ore miners Vale, Rio Tinto struggling to keep up


https://amp.scmp.com/economy/china-...emand-leaves-miners-vale-rio-tinto-struggling


Not forgetting that Vale has been impacted by covid in Brazil as well & ongoing it seems for a while yet...

 

[Telamelo]

MOUNT Gibson Iron’s development of the new Shine project in Western Australia’s Mid West region is ahead of schedule and on budget, with shipments targeted to commence early next quarter.

https://www.miningnews.net/bulks/news/1408766/mount-gibson’s-shine-ahead-of-schedule 

 

[Telamelo]

MOUNT Gibson Iron’s development of the new Shine project in Western Australia’s Mid West region is ahead of schedule and on budget, with shipments targeted to commence early next quarter.

https://www.miningnews.net/bulks/news/1408766/mount-gibson’s-shine-ahead-of-schedule

4 reasons why iron ore could surpass $230 per tonne!

The price of high-grade 65% Fe iron ore fines looks set to break through the $230-per-tonne-cfr-Qingdao price ceiling amid tight supply of seaborne cargoes and hefty mill margins, industry sources told Fastmarkets.

https://www.metalbulletin.com/Artic...why-iron-ore-could-surpass-230-per-tonne.html

 

[Telamelo]

MGX pre-market depth looking strong with 1.73M buy side vs only 1.09M sell side

P.S. Perhaps a crack towards $1 soon?

 

[The Triangle]

When 65% iron was $105/t the SP was $1.05
Now 65% iron is $125/t and the SP is $1.05

12 months ago a $1 move in the iron price (62% @ $55/t) equated to a $20m increase in the NPV. That roughly takes this mine to about an NPV of 1.25 billion as of a year ago - so now - with capex already spent, and a year less to discount - that gives me somewhere in the range of 1.7-1.9 billion in cash+NPV for the value of MGX (market cap is 1.2 billion). Likely iron won't stay at these levels for another 5 years, but even at $1.05 this is very undervalued. I still hold about 85% of my original shares. Won't sell anymore until this gets to the $1.40 range.

Another upside is that I recall that the reserves/resource was about 25 million tonnes before the wall collapse - it's only 21 million now - Will that 4 million tonnes from before now make its way in to the mix?

65% iron is $267/t and SP is $0.99

Rather unfortunate this is the price during the high waste stripping period!