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Magontec Limited (AU:MGL)
ASX:MGL
Australian Market
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Magontec Limited (MGL) AI Stock Analysis

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AU:MGL

Magontec Limited

(Sydney:MGL)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
AU$0.20
▼(-14.78% Downside)
Action:Reiterated
Date:05/13/26
The score is held down primarily by weak financial performance, driven by ongoing losses and deteriorating operating/free cash flow, alongside rising debt in 2025. Technicals are neutral-to-slightly positive with the price above key moving averages but limited momentum confirmation. Valuation is constrained by a negative P/E (loss-making) and no dividend yield data to provide support.
Positive Factors
Recycling & vertical integration
Magontec's recycling capability gives structural feedstock control and a second revenue stream. Converting scrap to alloy reduces raw-material exposure, supports gross margin resilience over cycles, and creates customer stickiness via integrated supply solutions for die-casters.
Negative Factors
Persistent losses & weak margins
Sustained negative profitability indicates structural margin pressure rather than a short blip. Low gross profit dollars despite revenue recovery suggest cost or mix issues; without durable margin restoration the company faces constrained reinvestment capacity and continued reliance on external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Recycling & vertical integration
Magontec's recycling capability gives structural feedstock control and a second revenue stream. Converting scrap to alloy reduces raw-material exposure, supports gross margin resilience over cycles, and creates customer stickiness via integrated supply solutions for die-casters.
Read all positive factors

Magontec Limited (MGL) vs. iShares MSCI Australia ETF (EWA)

Magontec Limited Business Overview & Revenue Model

Company Description
Magontec Limited, through its subsidiaries, focuses on the worldwide research, development, manufacturing, and sale of both common and specialized metal alloys, with operations spanning Asia, the Americas, Europe, and other international regions. ...
How the Company Makes Money
Magontec Limited makes money primarily by selling magnesium alloy products to industrial customers. Its key revenue streams typically include: (1) sales of magnesium alloy ingots (its core product) to die-casting and metal component producers; and...

Magontec Limited Financial Statement Overview

Summary
Financials are pressured: income statement trends show persistent losses and weak margin resilience despite a 2025 revenue rebound. Cash flow is the main concern with operating cash flow and free cash flow negative and worsening in 2025, increasing reliance on external funding. Balance sheet is serviceable but risk has risen as debt increased sharply in 2025 while equity drifted lower.
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
29
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue64.12M57.09M102.36M158.60M115.15M
Gross Profit1.24M9.55M9.38M38.59M19.23M
EBITDA-4.71M-3.21M5.47M27.26M10.08M
Net Income-5.40M-9.52M466.00K16.52M5.01M
Balance Sheet
Total Assets72.73M70.59M85.17M96.32M82.51M
Cash, Cash Equivalents and Short-Term Investments7.15M7.75M13.14M11.26M4.64M
Total Debt9.02M2.26M4.42M9.55M12.02M
Total Liabilities26.01M20.59M28.52M40.20M46.24M
Stockholders Equity46.72M50.00M56.65M56.13M36.27M
Cash Flow
Free Cash Flow-6.12M-2.92M7.43M8.84M4.94M
Operating Cash Flow-3.52M-996.00K11.40M10.75M5.82M
Investing Cash Flow-2.46M-1.94M-4.00M-1.78M-844.00K
Financing Cash Flow5.59M-2.85M-5.54M-2.35M-5.66M

Magontec Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.23
Price Trends
50DMA
0.23
Negative
100DMA
0.23
Negative
200DMA
0.22
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
36.40
Neutral
STOCH
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGL, the sentiment is Negative. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.23, and above the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MGL.

Magontec Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
AU$13.04M-13.19-26.29%76.73%
46
Neutral
AU$11.59M-2.20-11.39%-11.18%25.19%
44
Neutral
AU$9.38M-7.14-5.53%-7.41%
43
Neutral
AU$11.55M-3.00-20.54%-7.64%28.93%
41
Neutral
AU$13.86M-0.43-152.86%203.53%10.13%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MGL
Magontec Limited
0.20
0.01
5.26%
AU:VR8
Vanadium Resources Ltd.
0.02
>-0.01
-25.00%
AU:WAK
WA Kaolin Ltd.
0.01
-0.03
-75.00%
AU:IND
Industrial Minerals Limited
0.12
-0.02
-14.29%
AU:CCM
FYI Resources Limited
0.02
-0.01
-31.25%
AU:IG6
International Graphite Limited
0.04
>-0.01
-17.65%

Magontec Limited Corporate Events

Magontec issues over 1 million unquoted performance rights under incentive scheme
Jul 1, 2026
Magontec Limited has notified the Australian Securities Exchange of the issue of 1,055,884 unquoted performance rights under its employee incentive scheme. The new securities, which will not be quoted on the ASX, were issued on 1 July 2026 as part...
Magontec Issues 2.5 Million Unquoted Performance Rights Under Incentive Plan
May 13, 2026
Magontec Limited has notified the market of the issue of 2,512,177 unquoted performance rights under its employee incentive scheme, dated 12 May 2026. The new awards, which will not be quoted on the ASX, are designed to reward and retain staff, po...
Magontec shareholders back board, pay policies at 2026 AGM
May 12, 2026
Magontec Limited reported that all resolutions put to shareholders at its 2026 annual general meeting were passed by poll, reflecting strong investor support for the company’s governance and remuneration framework. The adoption of the remune...
Magontec delivers strong Q1 2026 profit rebound and margin gains
May 12, 2026
Magontec reported a strong start to 2026, with markedly improved conditions in its key markets driving margin expansion in Europe and North America as demand strengthened from recycling customers and hot water appliance manufacturers. The company&...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 13, 2026