If Mount Gibson deliver 3m/t 06/07 with a possible 20% increase in the ore price=NPAT of roughly $80m or 20cps which would put it on a P/E of 3.35 and the share price is currently in the mid 60's.
How cheap is this stock at present!!!!!!!! Management need to be more prompt and deliver too!!!
This is also not taking into account the Magnetite J/V which is expected to earn roughly $50m P/A over the life of project once operational!!!
Huntleys today had a STRONG BUY recommendation on MGX with a valuation at present of $1.09 and this is not taking into account poss. upgraded ore prices to take effect 01/04/06. My est. P/E maybe slightly higher too, can you believe that!!!