MGX - Mount Gibson Iron

[LeeTV]

11 iron ore "winners"
Robin Bromby | August 12, 2009
Article from: The Australian
http://www.theaustralian.news.com.au...-36418,00.html

TAKE the possible 21 iron ore stocks - outside the two Pilbara majors, of course - and Petra Capita of Sydney has found 11 they can recommend as value buys.

The broker tried to make it a level playing field - comparing apples with apples, if you like - by converting magnetite resources to their haematite equivalent; they did the sums on the amount of beneficiation required to produce a concentrate. Current benchmark iron ore prices were used to calculate enterprise value and that was all mixed up with expected EDITDA for the companies concerned.

Then they were handicapped into three divisions by market cap - one above and two below the $500 million threshold.

Four got the big tick in the heavyweight category: Murchison Metals with its Jack Hills project in the Mid West region of Western Australia; Gindalbie Metals which is also in that region with its Mungada and Karara projects; Fortescue Metals Group, the “new force” in the Pilbara; and Mount Gibson Iron which has Tallering Peak, Koolan Island and Extension Hill.

Middleweight contenders that got the nod from Petra Capital were Brockman Resources with its Pilbara iron ore deposit, Sundance Resources toiling away in tropical Cameroon, Northern Iron - a surprise winner - with the Sydvaranger deposit in Norway and - back to the Pilbara - United Minerals Corp.

In the lightweight division, there’s Western Plains Resources drilling away in the South Australia at Peculiar Knob and Buzzard, Strike Resources over there in Peru, BC Iron which has kneeled at the foot of FMG in return for access to the latter’s Pilbara railway and as a consdequence will be in production next year, and Flinders Mines and its Hamersley project. In regard the last mentioned, FMS yesterday received a speeding ticket from the ASX, the company responding that the price and volume surge may have been due to a new broker’s report.

It was interesting to see which companies got taken out in the cull. Notably there was Atlas Iron which is one of the great Pilbara junior success stories - but remember, this was all about finding stocks that are still value buys, not ones whose achievements and prospects have already been factored into their price.


The writer implies no investment recommendation and this report contains material that is speculative in nature. Investors should seek professional investment advice.

[aungsan]

Ok...
whats happening to the price??? It seems to be in a slide at the moment. Is there something we don't know about....?

[rustyheela]

Ok...
whats happening to the price??? It seems to be in a slide at the moment. Is there something we don't know about....?

profit taking, probably slide on chinese x change. still in weekly uptrend unless $.80c fails to hold. great stock & story - im a large holder

[aungsan]

profit taking, probably slide on chinese x change. still in weekly uptrend unless $.80c fails to hold. great stock & story - im a large holder

Ok then I'll hold off leaping from a tall building! You are right though, great story. It would be nice to see them flying high again... pre financial meltdown.

cheers

[legs]

Ok then I'll hold off leaping from a tall building! You are right though, great story. It would be nice to see them flying high again... pre financial meltdown.

cheers

In my experience great stories dont always end well... Oxiana/zinifex/oz minerals is a great example.

[rustyheela]

In my experience great stories dont always end well... Oxiana/zinifex/oz minerals is a great example.

you are correct but thats the risk of investing in the market. its all about risk v reward. You do the research and all you can do is invest on those probabilities. There are plenty of stories of woe in the bigcaps - ie Baboon n brown, massive writedowns in the banks etc,so there is risk in all stocks. You wont make money holding cash and no stock goes up in a straight line. most midcap miners are having a breather and this was expected and normal

[jonnycage]

back in these guys after being an early aztec resources holder years
ago and was made mount gibson holder. held way too long back
then, go out with the dramas that unfolded, thought at 1.02 have another crack

jc

[legs]

Poor today, no announcement, that i can see.

No news that i can see would have an effect on the Share Price, Does anyone know what happened?

[Agent 86]

Hey legs,

What announcement were you expecting, or have I missed something?

MGX goes nowhere other than range trading until another ann....

86

[laurie]

No interest in MGX! looking at the chart it's steadily heading up in a controlled manner rather seeing a saw tooth chart it's the way I like it will see $1.5 next week at this rate of climb,results look good and could only improve on top of what already is an impressive report JMHO

cheers laurie

[b4subi05]

Just noting another nice little jump late today. Is there something in the background? Perhaps another settlement with a defaulted supplier or something bigger? Anyone heard anything?

[legs]

I was wondering the same thing today myself.
Normally there is an announcement or something to coincide with a move against the trend like this.

But then again this company aren't a big one for announcements.

[legs]

Continues to rally strongly.

Not that i am complaining but would really like to not what is driving this rally.


Any ideas?

[vincent191]

It has been going up consistently and on good volumne. This is definately not a 1-day wonder, this stock has now got good support and will continue it's good work.

[legs]

It has been going up consistently and on good volumne. This is definately not a 1-day wonder, this stock has now got good support and will continue it's good work.

Iwish all my stocks would go up "consistantly" at 3-6% a day!!! It would make me Legs a very wealthy man....

[laurie]

Needs to back off a bit as profit takers will drag it back down $1.35-$1.40 not that will worry me

cheers laurie

[laurie]

hmm something has lit a fire under MGX this is now ready to receive a speeding ticket from the ASX Police

cheers laurie

[laurie]

ah now I know who started the fire Fushan increasing its holding maybe they are positioning themselves for a takeover of MGX by protecting the back door bring it on happy to sell @ $2.5+

cheers laurie

[laurie]

hmm amazed at the lack of interest in this on this forum it closed at $2.34 on Friday heading to the $2.5 that I mentioned almost a year ago this baby is quietly flying under the radar even avoiding a speeding ticket from the ASX

laurie

[Staggerlee]

I had noticed the lack of interest in this stock in more than one forum i frequent and was starting to wonder if everyone knew something i didnt.
Good to see someone talking about it, I agree with the $2.5 target and hope it comes sooner rather than later.