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Magnetite Mines Limited (AU:MGT)
ASX:MGT
Australian Market

Magnetite Mines Limited (MGT) AI Stock Analysis

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AU

Magnetite Mines Limited

(Sydney:MGT)

Rating:42Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Magnetite Mines Limited's stock score is primarily affected by its challenging financial performance, with significant profitability and cash flow issues. Technical analysis also reflects a cautious outlook, as the stock is trading below key moving averages. Valuation is unattractive due to negative earnings and the absence of dividends, further impacting the overall score.

Magnetite Mines Limited (MGT) vs. iShares MSCI Australia ETF (EWA)

Magnetite Mines Limited Business Overview & Revenue Model

Company DescriptionMagnetite Mines Limited explores for mineral properties in South Australia. Its flagship project is Razorback Iron project that includes the Razorback Ridge, Iron Peak, and Ironback Hill deposits located in Adelaide, South Australia. The company was formerly known as Royal Resources Limited and changed its name to Magnetite Mines Limited in December 2015. Magnetite Mines Limited was incorporated in 2004 and is headquartered in Wayville, Australia.
How the Company Makes MoneyMagnetite Mines Limited makes money primarily through the extraction and sale of magnetite iron ore concentrate. The company's revenue model is based on mining and processing magnetite ore from its projects, particularly the Razorback Iron Project, and selling the resulting high-grade iron ore concentrate to steel manufacturers and other clients in the global steel industry. Key revenue streams include long-term supply agreements with steel producers and spot market sales. The company may also benefit from strategic partnerships or joint ventures that enhance its mining and processing capabilities, as well as fluctuations in iron ore prices which can affect overall earnings.

Magnetite Mines Limited Financial Statement Overview

Summary
Magnetite Mines Limited is facing financial challenges typical of early-stage companies. Despite a strong equity position and low leverage, the company struggles with negative profitability and cash flow issues, relying heavily on external financing for stability.
Income Statement
25
Negative
Magnetite Mines Limited has shown minimal revenue growth with total revenue increasing slightly from 212,587 to 214,494 AUD. However, profitability remains a concern, with negative net and EBIT margins indicating substantial losses. The net profit margin and EBIT margin are deeply negative, reflecting high operational costs relative to revenue, which is typical for a company in developmental stages.
Balance Sheet
45
Neutral
The company maintains a solid equity base with a debt-to-equity ratio of approximately 0.003, indicating low leverage. However, the company faces challenges with negative net income impacting return on equity, which remains negative. The equity ratio is strong, suggesting good asset coverage by equity, but profitability issues are a concern.
Cash Flow
30
Negative
Operating cash flow is negative, which is concerning, and free cash flow is also negative, reflecting challenges in generating cash from operations and covering capital expenditures. The company has shown some improvement in financing activities to support operations, but overall cash flow health is weak.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
261.29K214.49K212.59K195.44K0.000.00
Gross Profit
261.29K214.49K-43.09K88.69K-9.19K-9.98K
EBIT
-3.74M-4.06M-5.22M-3.44M-1.52M-806.01K
EBITDA
-4.01M-4.85M-4.94M-3.45M-1.62M-264.37K
Net Income Common Stockholders
-4.28M-4.85M-5.33M-3.66M-1.73M-373.51K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.03M1.21M5.13M19.35M16.59M830.87K
Total Assets
39.83M38.23M38.97M45.79M29.70M10.42M
Total Debt
505.42K117.33K2.42M2.21M1.98M2.08M
Net Debt
-523.78K-1.10M-2.71M-17.13M-14.61M1.25M
Total Liabilities
1.85M1.38M3.66M6.44M2.81M2.29M
Stockholders Equity
37.98M36.84M35.31M39.35M26.89M8.14M
Cash FlowFree Cash Flow
-6.18M-7.25M-13.86M-12.26M-4.31M-1.22M
Operating Cash Flow
-3.05M-3.67M-3.87M-2.29M-1.13M-877.93K
Investing Cash Flow
-3.08M-3.77M-9.98M-10.04M-3.17M-331.65K
Financing Cash Flow
2.81M3.52M-358.20K15.10M20.06M1.81M

Magnetite Mines Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.10
Price Trends
50DMA
0.11
Negative
100DMA
0.11
Negative
200DMA
0.14
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.30
Neutral
STOCH
5.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGT, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MGT.

Magnetite Mines Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
AUMGT
42
Neutral
AU$12.10M-11.14%38.70%
AUGTR
AU$12.00M-6.64%
AUAKO
AU$13.66M-17.86%
AUVML
43
Neutral
AU$11.79M25.00-4.50%95.18%
AUCTN
42
Neutral
AU$9.70M-42.30%-66.67%
AUAR3
35
Underperform
AU$12.72M-15.31%7.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MGT
Magnetite Mines Limited
0.10
-0.27
-72.97%
AU:GTR
GTI Resources Ltd
AU:AKO
Akora Resources Ltd.
0.10
-0.05
-33.33%
AU:VML
Vital Metals Ltd
AU:CTN
Shree Minerals Limited
AU:AR3
Australian Rare Earths Limited
0.06
-0.03
-33.33%

Magnetite Mines Limited Corporate Events

Magnetite Mines Announces Expiry of Director’s Options
May 23, 2025

Magnetite Mines Limited announced a change in the director’s interest notice, specifically regarding the expiry of listed options held by Director Paul White. As of May 23, 2025, 183,708 MGTO listed options exercisable at $0.45 per share expired, impacting the director’s holdings but not involving any new acquisitions or disposals.

Magnetite Mines Addresses Late Lodgement of Director’s Interest Notice
May 23, 2025

Magnetite Mines Limited announced the late lodgement of Appendix 3Y, detailing changes in director’s interests due to an administrative oversight. The company issued 214,948 fully paid ordinary shares to directors Paul White and Simon Wandke as part of their remuneration, following shareholder approval. The company assures stakeholders that this was an isolated incident and maintains confidence in its compliance processes with ASX listing rules.

Magnetite Mines Announces Expiration of Quoted Options
May 23, 2025

Magnetite Mines Limited announced the expiration of 10,812,883 quoted options exercisable at $0.45 each as of May 23, 2025. This change in issued capital reflects the company’s ongoing management of its financial instruments, which may impact its operational flexibility and investor relations. The expiration of these options is part of the company’s broader strategy to optimize its capital structure as it continues to develop its significant iron ore projects.

Magnetite Mines Limited Announces New Securities Quotation on ASX
May 23, 2025

Magnetite Mines Limited has announced the application for the quotation of new securities on the Australian Securities Exchange (ASX). These securities are being issued as a result of options being exercised or other convertible securities being converted. This move is part of the company’s strategic efforts to enhance its financial flexibility and support its ongoing operations and growth initiatives in the iron ore sector.

Magnetite Mines Secures $7 Million Funding Through Convertible Notes
May 19, 2025

Magnetite Mines Limited has issued a Cleansing Notice related to its Convertible Securities Agreements, allowing the conversion of notes into shares without further disclosure to retail investors. This move, involving a funding arrangement with C/M Capital, aims to raise up to $7 million, enhancing the company’s financial flexibility and potentially impacting its market position by facilitating further project development.

Magnetite Mines Limited Issues New Convertible Notes and Share Options
May 19, 2025

Magnetite Mines Limited announced the issuance of new unquoted equity securities, including 810,000 convertible notes and options for 2,881,548 shares with an exercise price of $0.1301, expiring in three years. This move is part of the company’s strategy to enhance its financial flexibility and support its ongoing operations, potentially impacting its market position and offering new opportunities for stakeholders.

Magnetite Mines Announces Expiry of Quoted Options
May 1, 2025

Magnetite Mines Limited announced the expiry of its quoted options, exercisable at $0.45, on 23 May 2025. With the current share price at $0.11, the options are out of the money, and the company will not send expiry notices to individual holders. This decision reflects the company’s strategic focus on its core operations and market positioning, as it continues to develop its Razorback Iron Ore Project to meet global demand for high-quality iron ore products.

Magnetite Mines Advances Razorback Project with Strategic Partnerships and Innovative Processing
Apr 29, 2025

Magnetite Mines Limited has made significant progress in the third quarter of 2025, particularly with its Razorback Iron Ore Project. The company submitted a Mining Lease Proposal to South Australia’s Department for Energy & Mining, marking a key milestone in the project’s development. Additionally, Magnetite Mines is advancing its strategic partnership with JFE Shoji Australia for funding and production offtake, while also exploring other potential partnerships. The company has filed a provisional patent for a saline water processing method, enhancing its competitive edge and commitment to sustainable mining practices. These developments position Magnetite Mines to capitalize on the increasing demand for environmentally friendly iron products amid global efforts to decarbonize iron and steelmaking.

Magnetite Mines Issues Shares to Directors as Part of Remuneration Strategy
Apr 3, 2025

Magnetite Mines Limited announced the issuance of 214,948 fully paid ordinary shares to directors Paul White and Simon Wandke as part of their remuneration package, following shareholder approval. This move is part of the company’s strategy to reduce cash expenditures by compensating directors with shares instead of cash, reflecting a commitment to financial prudence and aligning management interests with shareholder value.

Magnetite Mines Limited Announces Quotation of New Securities
Apr 3, 2025

Magnetite Mines Limited has announced the quotation of 214,948 fully paid ordinary securities on the Australian Securities Exchange (ASX) as part of an employee incentive scheme. This move is expected to enhance the company’s operational flexibility and potentially improve its market positioning by aligning employee interests with those of shareholders.

Magnetite Mines Files Patent for Saline Water Flotation Method
Apr 2, 2025

Magnetite Mines Limited has submitted a provisional patent for a saline water flotation method, which allows the production of Direct Reduction (DR) grade iron ore concentrates using saline water instead of fresh water. This innovative process could eliminate the need for large-scale desalination plants, offering significant environmental and cost benefits. The method positions Magnetite Mines as a key player in the green iron industry by providing a sustainable solution for ore processing, potentially giving the company a competitive edge in water-sensitive regions.

Magnetite Mines Advances Razorback Project with Mining Lease Proposal
Mar 26, 2025

Magnetite Mines Limited has lodged a Mining Lease Proposal for its Razorback Project with the South Australian Department for Energy & Mining, marking a significant milestone towards production. The project aims to produce 5 million tonnes per year of premium-grade magnetite concentrates, aligning with the growing demand for green iron production. This development positions the company as a leader in the state’s emerging green iron industry, supported by a recent Federal Green Iron Fund announcement. The proposal underscores the project’s technical and regulatory maturity and its potential to contribute to economic prosperity through sustainable mining practices.

Magnetite Mines Limited Announces Cessation of Performance Rights
Mar 14, 2025

Magnetite Mines Limited announced the cessation of 669,243 performance rights due to the conditions for these rights not being met or becoming incapable of being satisfied. This development may impact the company’s capital structure and could influence investor perception regarding the company’s operational milestones and strategic objectives.

Magnetite Mines Limited Releases Interim Financial Statements for 2024
Mar 12, 2025

Magnetite Mines Limited has released its interim financial statements for the period ending December 31, 2024. This announcement, approved by the board of directors, provides a comprehensive overview of the company’s financial performance, including profit or loss, financial position, and cash flows. The release of these financial statements is crucial for stakeholders as it offers insights into the company’s operational efficiency and financial health, potentially impacting its market positioning and investor confidence.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.