Mount Gibson Iron Limited (MGX)



Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today Ľ it's FREE! Already a member? Login now!


General Information
Company Name: Mount Gibson Iron Limited
Stock Code: MGX
Website: www.mtgibsoniron.com.au
GICS Sub-Industry: Steel
Market Cap ($M): 262
Equiv. Shares (M): 1,091

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.240 $ 0.220 $ 0.250 $ 0.217 $ 0.240 10,223,255 0%

Current Broker Consensus Recommendation more
Recommendation: Sell (3.5)
Recommendation Date: 17th Dec 2014
Brokers Surveyed: 4

Company Overview

Business Description:
Mount Gibson Iron Limited (MGX) is involved in exploration, development and mining of iron ore in Western Australia. The company has three major projects being: Tallering Peak, Koolan Island and Extension Hill. For FY13, total ore sales were 8.8Mt. The total mineral resources and reserves as of June 2013 stood at 88.6Mt @ 61.9% Fe and 45.2Mt @ 62.1% Fe respectively.

Strategy Analysis:
Mount Gibson seeks to maintain and grow long term profitability through discovery, development, participation and/or acquisition of mineral resources. The aim is to lift and sustain production beyond 10 million tonnes of iron ore a year and to extend life to beyond 15 years through exploration and development and/ore acquisition. Mount Gibson Iron reported NPAT down 71.4% to $37.1m for the half-year ended 31 December 2012. Revenues from ordinary activities were $416.2m, up 10.4% from the same period last year, reflecting lower realised iron ore prices, broader product mix, and early adoption of new waste accounting requirements. Diluted EPS was 3.41 cents compared to 12 cents last year. Net operating cash flow was $43.13m compared to $123.16m last year. The interim dividend declared was 2 cents in line with 2 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F -80.2 -7.4 40.8 -3.3 4.0 16.7 100.0
2015  F -57.0 -5.2 -148.4 -4.6 4.0 16.7 100.0
2014  A 117.7 10.8 26.5 7.7 4.0 4.8 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Arrium (ARI) $455 M -0.6786 -0.8988 0.4752 0.6483 6.4050 4.3417 50.45 0.00 6.45
BlueScope Steel (BSL) $2,824 M -- 1.7166 0.4374 46.1609 16.9919 11.8212 0.00 0.99 2.38
Fortescue Metals (FMG) $7,317 M 0.7497 -0.7210 -0.2936 2.5198 9.0315 12.7856 9.03 4.21 4.32
Independence Group (IGO) $975 M 0.9316 1.0288 0.1420 21.0313 10.3663 9.0770 1.92 3.47 3.28
Mount Gibson Iron (MGX) $240 M 0.0351 -- -- 2.4915 -- -- 18.18 15.27 18.18

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
MGX 0.74 9.76 0.21 10.00 0.29
Market 0.88 14.7 1.18 1.88 1.45
Sector 0.61 11.3 0.67 1.25 2.37

Directors
Name Position Start Date
Mr Andrew Ferguson Alternate Director 24 September 2012
Mr Hui Seng Lee Non-Executive Chairman 29 January 2010
Mr Russel Christopher Barwick Non-Executive Director 16 November 2011
Mr Simon Bird Non-Executive Director 23 February 2012
Mr Alan Jones Non-Executive Director 28 July 2006
Mr Paul Dougas Non-Executive Director 16 November 2011
Mr Li Shaofeng Non-Executive Director 07 November 2011

Management
Name Position
Jim Beyer Chief Executive Officer
Peter Kerr Chief Financial Officer
Andrew Thomson Chief Operating Officer
David Stokes Company Secretary

Substantial Shareholders
Holding Name
154,166,874 (14.14%) Shougang Fushan Resources Group Limited, True Plus Limited and its subsidiaries
154,166,874 (14.14%) Shougang Corporation Group/Shougang Concord Group
282,992,277 (25.95%) COL Capital Limited
279,877,774 (25.66%) APAC Resources Ltd (formerly Shanghai Merchants Holdings Limited)

Calendar of Events
Date Event
09 December 2015 Report (Annual)
13 October 2015 Report (Quarterly)
09 October 2015 Report (Annual)
19 August 2015 Report (Prelim)
16 July 2015 Report (Quarterly)
16 April 2015 Report (Quarterly)
18 February 2015 Report (Interim)
21 January 2015 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

Advertisement

Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Optimising Your Portfolio

An educational booklet that will point out what you need to know to use options effectively for additional income and risk management.

More details...

News

Aussie Investors take their foot off the accelerator

By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 | Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.

Fed Feeds Frenzy

By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 | In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.

Household brands Woolworths and Telstra Heavy Lifting

By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 | Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.

Steady open as Woodside investors wait on details of possible Wheatstone acquisition

By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 | Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.

MYEFO and Lima - December could be nasty.

BR Securities Australia Pty Ltd 2/12/2014 | December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.

Australian Share Market - Close Up

CMC Markets 11/11/2014 | The Australian share market is in a decision zone - and trading from here may set the direction for the rest of the year.

More...


Sponsored Links