MGX - Mount Gibson Iron

MGX down to 134 million cash. Way beyond my projection of just below 200 million. Just can't trust these guys. They really should be issuing better guidance.

Key positive takeaway for me in the quarterly was the statement on modern slavery....

i need it to drop lower still , before i add more

the Asian New Year soon , i could easily get that chance

Hopefully the low of the current bar will hold so that we can get a kick up from here.

Cheers, Rob [DNH]

MGX is on TH.
Luck is a big factor for right decision in right time.
I wanted to sell MGX and decided to do it on Monday instead as a last thought.
The pause of trading announced. I thought bingo, I got a good luck. The TH says - it is a fire. Surely not an ordinary fire to stop the trading.
Simply that will bring down MGX price to furthest south when TH is removed.
Similarly wanted to buy ASM (after selling out on a profit earlier) and with a delayed decision, the price is only going up and up.
Went for an interview with a miner selling non metallic products (not coal or lithium). Did not get the job as I was too pricey. But the top management was so confident to by pass the Feasibility phase and going straight from PFS to Execution. It was primarily the off takes were all committed and they were so sure of success did not want to waste 12 months on FS. I should have bought the stock as the news came on ASX after couple of weeks and price already gone as far north as it could. That is again lack of timing with decision.
Bottom-line to time the decision is the key for success and just not the decision.

cheers !

missed the TH notice ( saw the pause notice )

am not adverse to adding sub 35 cents ( depending on the details ) ( say bad enough they retain the div. to fund repairs , would have me thinking hard )

all good here SO FAR

What do you fundamental type buyers think of MGX currently. Seems sheap?

investtrader said:

What do you fundamental type buyers think of MGX currently. Seems sheap?

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hasn't paid a div. since 2021 . sold off some assets to FEX and i had bought as low as 39 cents in January 2022

gee , i would rather point you at FEX

( i hold both MGX and FEX )

but 40 cents would have me thinking about more MGX

( but currently have an order in for extra GRR )

cheap depends on if China still keeps buying Australian iron ore

MOUNT GIBSON IRON LIMITED REPORT FOR THE QUARTER ENDED 30 JUNE 2024

17 July 2024

• Iron ore sales of 0.9 million wet metric tonnes (Mwmt) for the June 2024 quarter at anaverage grade of 65.2% Fe, bringing total sales for the year ended 30 June 2024 (FY24) to4.1 Mwmt at 65.3% Fe, near the upper end of annual guidance of 3.8-4.2 Mwmt.
• Strong Group operating cashflow of $290 million generated in FY24 despite aweaker June quarter where cashflows of $30 million were almost fully offset by adverse provisional pricing adjustments, resulting in a net quarterly cashflow of $1 million.
• Significant growth in the Company’s cash and investment reserves during FY24 to $436 million at 30 June 2024, up from $162 million at the start of the financial year,and excluding the Company’s share and option holdings in Fenix Resources Limited which had a value of approximately $20 million at year end.

Mount Gibson’s total cash and investment reserves equate to approximately $0.37 per share.
• Full year cash operating costs at Koolan Island of $74/wmt sold Free on Board(FOB) before royalties and capital projects, approximately 5% above guidance after averaging $97/wmt FOB in the June quarter.
• Shipments and cargo grades in the September 2024 quarter will be temporarily lower as mining activity transitions as planned to the eastern areas of the Koolan Island Main Pit,after which high grade ore extraction and shipping rates will increase.
Shipping guidance for FY25 is 2.7-3.0 Mwmt reflecting the transitioning activities and ground support work necessary for mining and shipping rates to increase through FY25 and the following year.
• Mount Gibson expects to report its FY24 annual financial results on 21 August 2024. In accordance with its obligations to review the book carrying value of the Koolan Island operation in the context of prevailing iron ore prices, the Company anticipates reporting anon-cash accounting impairment which will effectively bring forward depreciation and amortisation charges that would otherwise be incurred in future years.

Note: All currency is stated in Australian dollars unless noted otherwise.
All financial results are unaudited and remain subject to final period-end adjustments.

Comment

Mount Gibson Chief Executive Officer Peter Kerr said: “Mount Gibson is pleased to report a strong production and financial performance for the 2023/24 financial year.
Although the Company’s cash generation slowed in the June quarter reflective of lower iron ore prices and adverse provisional pricing adjustments, the Koolan Island operation achieved near the upper end of FY24 sales guidance at 4.1 Mwmt grading 65.3% Fe.

Cashflow generation in FY24 exceeded internal expectations with the Company’s cash and investment reserves increasing to $436 million at year end, with no bank borrowings and excluding the $20 million equity holding in Mid-West operator Fenix Resources Limited.

“We enter the 2024/25 financial year with a strong base from which to generate cashflows from the high grade Koolan Island iron ore operation and to pursue new investment opportunities for the business.”

part of a much larger release

i hold MGX

hmmm going to make me wonder if i should have added more in recent weakness ( although it was still above my target price )

the quick and the dead (brown fox)

i hold MGX

and was/is thinking of topping up ( but maybe a couple of cents lower )



if diversifying , into what , NST has a huge undeveloped coal deposit not so far away ( that NST seems to have no interest in mining )

there are some brown-field projects in the region , or maybe they look for new projects outside Australia

i hope they choose wisely

Dona Ferentes said:

the quick and the dead (brown fox)

The bizarre $470 million iron ore miner sitting on $436 million cash

Mount Gibson Iron (ASX: MGX) might have one of the most obscure value propositions out there – the company carries almost as much cash as its entire market cap.

www.marketindex.com.au

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Not the first time MGX has had more cash than market cap , ive traded MGX many times over the journey but the best no brainer was quite a few years ago after one of their islands mines flooded fully insured and the MC was roughly 60% of cash . No hesitation buy

The Triangle said:

Well, now cash is up to $440 million following an insurance payout. MC up to 280 million. I don't understand how so many people miss these opportunities....

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Dona Ferentes said:

the quick and the dead (brown fox)

The bizarre $470 million iron ore miner sitting on $436 million cash

Mount Gibson Iron (ASX: MGX) might have one of the most obscure value propositions out there – the company carries almost as much cash as its entire market cap.

www.marketindex.com.au

Click to expand...

That obscure valuation is looking better and better.
52 week low again today and a slow share buy back to begin soon.
Starting to look way oversold to me.

Looking for a reversal here as all of the Iron ore stocks appear to be reaching a minimum. Mt Gibson is more of a pure iron ore miner than most.

MartyC said:

Looking for a reversal here as all of the Iron ore stocks appear to be reaching a minimum. Mt Gibson is more of a pure iron ore miner than most.

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Is this a delayed post from 16 July?

Sean K said:

Is this a delayed post from 16 July?

View attachment 207463

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and iron ore is now going down

qldfrog said:

and iron ore is now going down

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From market index. Stable and rising?

@qldfrog and @frugal.rock probably depends on time frame but USD/T prices have been flat recently, longer term down, but not below $90T with some growth spurts. Looks like a nice base on the 5-year chart.