Australian (ASX) Stock Market Forum

MGX - Mount Gibson Iron

Jump to new
Price couldn't go higher than the triple top. Then the price of iron ore fell. The daily price chart shows a dramatic waterfall selloff.

mgx0709.PNG
 
i wasn't planning to buy more in the near-term , but since sub-50c looks likely , i suppose i should at least think about calculating a target price , maybe two ( in case the slide continues after the first buy )
 
peter2 said:
Price couldn't go higher than the triple top. Then the price of iron ore fell. The daily price chart shows a dramatic waterfall selloff.

View attachment 129971
Click to expand...
Unfortunately MGX has recruited a senior manager at a very top level who has ruined the whole game .No chart shows that lack of management calibre and all strategies basically fail from there.
DNH
 
divs4ever said:
yes management can be a huge impediment to success ( when you get the wrong people )
Click to expand...

Management – Mt Gibson Iron

www.mtgibsoniron.com.au www.mtgibsoniron.com.au
Looking into the key management profile -
CEO - very impressive qualifications on finance side - why he could not hire CFO at least with some financial degrees than just B Bus ?
CFO - great credential. But for a CFO I would be expecting at least a qualification of CA or CPA.
COO - great experience - gold Newcrest - why left ? Mineral Resources - why left , Ambatovy Nickel - great position VP Operations - but why left ? Is not the COO responsible for ultimate production and low cost ? The CEO is to depend on the COO per se.
Company Secretary - great qualifications and Law degree - 5 ticks
Historically MGX has never performed
1631022532797.png
 
after previous short stays in NCM , and KCN , a resume including a post as NCM doesn't inspire me to optimism

i understood why NCM took that big hit a few years back , and will be looking for hints of the same in MGX now

and maybe i will set my next buy a fair bit lower , since MGX are planning to expand their footprint

cheers
 
divs4ever said:
after previous short stays in NCM , and KCN , a resume including a post as NCM doesn't inspire me to optimism

i understood why NCM took that big hit a few years back , and will be looking for hints of the same in MGX now

and maybe i will set my next buy a fair bit lower , since MGX are planning to expand their footprint

cheers
Click to expand...
At the moment all technical chart indicators are bearish within current strong downtrend. Until such time we see glimpses of a turnaround.. I'll continue to watch closely from the sidelines awaiting any potential buy alert.

https://www.barchart.com/stocks/quotes/MGX.AX/opinion

asx.swingtradebot.com

MGX Share Technical Analysis | Mount Gibson Iron Limited

Current Technical Analysis and interactive chart for $MGX stock / shares. See the current trading strategy, trend(s), rating and buy and sell signals.
asx.swingtradebot.com asx.swingtradebot.com

https://www.aussiebulls.com/SignalPage.aspx?lang=en&Ticker=MGX.AX

DYOR as always.. Cheers tela
 
Telamelo said:
At the moment all technical chart indicators are bearish within current strong downtrend. Until such time we see glimpses of a turnaround.. I'll continue to watch closely from the sidelines awaiting any potential buy alert.

https://www.barchart.com/stocks/quotes/MGX.AX/opinion

asx.swingtradebot.com

MGX Share Technical Analysis | Mount Gibson Iron Limited

Current Technical Analysis and interactive chart for $MGX stock / shares. See the current trading strategy, trend(s), rating and buy and sell signals.
asx.swingtradebot.com asx.swingtradebot.com

https://www.aussiebulls.com/SignalPage.aspx?lang=en&Ticker=MGX.AX
DYOR as always.. Cheers tela
Click to expand...
Excellent
 
Another stinker of a quarterly report out. MGX down to $250 million cash. They are so far off the original re-start feasibility that Mr. Kerr should publish an update and then resign. Shine was a complete abortion, and the iron prices may have collapsed - but they are still much higher than anyone forecast them to be.

I have my suspicions that the re-start feasibility was 'engineered' with regards to capital expenditure. These things like airstrip, crushers, etc, pit rehab - they happen, they are common - but I don't think they were in the feasibility costs.

Given this risk of IO falling, the perennial underperformance of KI with regards to costs and grade, and Chinese control of MGX, I don't think they should be much more than about 40 cents.

Below is what they said they would do 3.5 years ago
1634774411620.png
 
Last edited:
The Triangle said:
Another stinker of a quarterly report out. MGX down to $250 million cash. They are so far off the original re-start feasibility that Mr. Kerr should publish an update and then resign. Shine was a complete abortion, and the iron prices may have collapsed - but they are still much higher than anyone forecast them to be.

I have my suspicions that the re-start feasibility was 'engineered' with regards to capital expenditure. These things like airstrip, crushers, etc, pit rehab - they happen, they are common - but I don't think they were in the feasibility costs.

Given this risk of IO falling, the perennial underperformance of KI with regards to costs and grade, and Chinese control of MGX, I don't think they should be much more than about 40 cents.
Click to expand...
Current quarterly report reflects what I have commented on 7th Sept on this forum. In addition for some reasons, MGX never attracted good management since I have seen very closely back in 2007 and onwards. Bad iron ore days MGX failed. Good iron ore days MGX failed .
There must be something intrinsic into this organization which as a miner can not speculate.
However a restructure is imminent with company's strategies and management.


1634774236887.png
 
Miner said:
Current quarterly report reflects what I have commented on 7th Sept on this forum. In addition for some reasons, MGX never attracted good management since I have seen very closely back in 2007 and onwards. Bad iron ore days MGX failed. Good iron ore days MGX failed .
There must be something intrinsic into this organization which as a miner can not speculate.
However a restructure is imminent with company's strategies and management.


View attachment 131732
Click to expand...
Integrity is everything. There are a lot of lackluster miners out there who get lofty valuations because the market believes in them (usually because they delivered on a past strategy). Across the street I look at FEX - they've done well - but I can't see them being profitable this time next year when hedges run out. MGX on the otherhand should make a killing in the next 3 years - but the market just does not trust them (I don't trust MGX).

With another quarter expected to be only a few hundred thousand tonnes of ore + capex + shine debacle + divi payment, I could see cash balances just below $200 million for MGX come H1 report and I don't think FY22 will produce a net profit - so probably no dividend for FY22. Perfect time for the Chinese puppet masters of MGX to take the company over...
 
The Triangle said:
Integrity is everything. There are a lot of lackluster miners out there who get lofty valuations because the market believes in them (usually because they delivered on a past strategy). Across the street I look at FEX - they've done well - but I can't see them being profitable this time next year when hedges run out. MGX on the otherhand should make a killing in the next 3 years - but the market just does not trust them (I don't trust MGX).

With another quarter expected to be only a few hundred thousand tonnes of ore + capex + shine debacle + divi payment, I could see cash balances just below $200 million for MGX come H1 report and I don't think FY22 will produce a net profit - so probably no dividend for FY22. Perfect time for the Chinese puppet masters of MGX to take the company over...
Click to expand...
@The Triangle - In all honesty, company is nothing and it is the people /management first, then product quality and then organizational policies and procedure.
As I have indicated few times on this thread, I have no confidence to put my hard earned money however small it may be on the hands of current management of MGX.
 
With iron ore price gone below $100 on Friday, it will be interesting to see how iron ore miners like MGX and others are treated on Monday market.
 
Miner said:
With iron ore price gone below $100 on Friday, it will be interesting to see how iron ore miners like MGX and others are treated on Monday market.
Click to expand...
MGX continues to drop but the others have gone steady. Good to stay on the sidelines for a while with iron in my view. I really think we're going to see low 80s soon and no letup of production costs or shipping costs for any of the miners.

Hopefully the board gets strike two today. Not that it would really change much, but would be nice to know their day has gone to sh*t and they have to suffer that bit of embarrassment.
 
my pick for the January Comp ( in 2022 ) is MGX

now per my usual style i think MGX will slide lower as Asia moves towards their Festive Season and steel manufacturers close down over the holidays ( but i am willing to buy extra MGX is the SP goes low enough )

and i agree with The Triangle when he worries over higher production and shipping costs , but with the share price liable to slide back into the thirties ( cents a share range ) .. i think i see long-term value
 

Similar threads

ducati916
September DDD
2 3 4
Replies
66
Views
8K
qldfrog
qldfrog
basilio
Ozempic: Magic Pill or Devils Bargain?
Replies
10
Views
1K
sptrawler
sptrawler
ducati916
August DDD
2 3 4
Replies
75
Views
18K
ducati916
ducati916
R
Value Investing
Replies
9
Views
2K
robertbanking
R
R
Marketing Timing Investing
Replies
11
Views
2K
divs4ever
divs4ever
Top