Mount Gibson Iron Limited (MGX) AI Stock Analysis

• Market Cap: $454.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 56.6
• Beta (1Y): 0.55
• Revenue Growth: -39.92%
• EPS Growth: -249.60%
• Country: AU
• Employees: 389
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Steel
• EPS (TTM): -0.06
• Shares Outstanding: 1,180,428,700
• 10 Day Avg. Volume: 1,235,152
• 30 Day Avg. Volume: 1,818,695
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.16
• Enterprise Value/Revenue: -0.18
• Enterprise Value/Gross Profit: -2.02
• Enterprise Value/Ebitda: 16.33
• 1Y Price Target: $0.50
• Price Target Upside: 32.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: AU$0.50 ▲(31.58% Upside)

Mount Gibson Iron Limited's strong financial performance, characterized by significant revenue growth and profitability recovery, is a major positive. The technical analysis supports a bullish trend, although overbought signals suggest potential near-term caution. Valuation remains a concern with a negative P/E ratio and no dividend yield, highlighting the need for careful consideration of investment risks.

Mount Gibson Iron Limited Business Overview & Revenue Model

Company Description

Mount Gibson Iron Limited, together with its subsidiaries, engages in the mining, crushing, processing, transportation, and sale of hematite iron ore in Australia. The company primarily holds interests in the Extension Hill mine and Shine mine deposit in the Mid-West region of Western Australia, as well as operates haulage of the ore through road and rail for export from the Geraldton Port. It is also involved in the mining and direct shipment of hematite iron ore at the Koolan Island mine site in the Kimberley region of Western Australia; and the treasury management activities. Mount Gibson Iron Limited was incorporated in 1938 and is headquartered in West Perth, Australia.

How the Company Makes Money

Mount Gibson Iron Limited generates revenue primarily through the sale of iron ore to international steel producers, with a significant portion of its exports going to China. The company's revenue streams are driven by the volume of iron ore it can produce and sell, and the prevailing market prices for iron ore. Mount Gibson Iron leverages its strategic locations, such as the high-grade Koolan Island mine, to produce quality iron ore that attracts premium pricing. The company also benefits from established logistics and shipping infrastructure, allowing it to efficiently transport its product to markets. Strategic partnerships with shipping and logistics providers, as well as long-term contracts with customers, contribute to stable revenue streams and reduce market volatility risks. Additionally, Mount Gibson Iron's focus on operational efficiency and cost management helps maximize profitability.

Mount Gibson Iron Limited Financial Statement Overview

Summary

Mount Gibson Iron Limited shows strong financial performance with revenue growth and profitability. The income statement highlights a 47.5% revenue increase and a positive net profit margin. The balance sheet is stable with low leverage, and cash flows are robust, reflecting effective capital management. However, historical volatility in key financial metrics suggests caution is needed to maintain this trajectory.

Income Statement

Mount Gibson Iron Limited has demonstrated a strong recovery in revenue and profitability in the latest fiscal year. The gross profit margin improved significantly, indicating efficient cost management, and the net profit margin turned positive, showcasing profitability. There is a notable revenue growth of 47.5%, reflecting strong market demand and sales execution. However, past volatility in revenue and net income highlights some potential risks in maintaining this trajectory.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.02, indicating low leverage and financial risk. The equity ratio of 82.2% shows a strong equity base relative to total assets. Return on equity (ROE) improved to 1.2% from negative values in previous years, signaling a return to profitability. However, previous fluctuations in equity and net income suggest potential volatility.

Cash Flow

The cash flow situation is robust, with a substantial increase in free cash flow, reflecting strong operational cash generation and effective capital management. The operating cash flow to net income ratio is notably high, indicating efficient conversion of revenue to cash. The free cash flow to net income ratio also supports this view. However, past variability in cash flows should be monitored as a potential risk.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	667.82M	452.69M	186.11M	300.46M	455.56M
Gross Profit	210.62M	111.85M	-30.52M	84.69M	125.33M
EBITDA	90.77M	158.52M	-171.88M	135.57M	166.78M
Net Income	6.43M	5.18M	-174.12M	64.01M	84.20M
Balance Sheet
Total Assets	664.30M	724.94M	760.14M	984.11M	804.78M
Cash, Cash Equivalents and Short-Term Investments	463.03M	162.41M	125.57M	351.58M	423.23M
Total Debt	11.85M	23.05M	11.88M	18.10M	12.23M
Total Liabilities	118.13M	185.71M	227.04M	264.40M	134.05M
Stockholders Equity	546.17M	539.23M	533.10M	719.71M	670.73M
Cash Flow
Free Cash Flow	267.32M	56.59M	-196.08M	-43.10M	77.27M
Operating Cash Flow	328.21M	130.62M	21.86M	171.99M	167.91M
Investing Cash Flow	-335.03M	-131.00M	-10.12M	-163.55M	-70.18M
Financing Cash Flow	-12.01M	-22.47M	-30.94M	-25.84M	-34.74M

Mount Gibson Iron Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGX, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.31, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 72.44 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MGX.

Mount Gibson Iron Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGX	66 Neutral	$454.47M	56.60	-35.86%	―	-39.92%	-249.60%
Sector *	61 Neutral	$9.73B	6.73	-0.14%	3.11%	2.72%	-42.86%
IRNRF	―	$16.26M	5.33	4.26%	―	―	―
GWR	47 Neutral	AU$33.98M	1.67	17.20%	―	―	―
M4M	34 Underperform	AU$27.85M	―	-277.03%	―	―	-540.00%
TI1	―	AU$30.22M	―		―	―	―
EQX	28 Underperform	AU$22.35M	―	-15.31%	―	―	32.72%

Mount Gibson Iron Limited Corporate Events

Mount Gibson Iron Limited Reports Quarterly Results and Enters Gold Sector

Mount Gibson Iron Limited reported iron ore sales of 0.63 million wet metric tonnes for the quarter, generating $65 million in revenue, with annual sales totaling 2.61 million tonnes. The company faced challenges due to lower iron ore prices and adverse weather conditions affecting operations at Koolan Island. However, it is preparing for increased production and reduced costs in the coming year. A significant development is the company’s acquisition of a 50% interest in the Central Tanami Gold Project, marking its entry into the gold sector. This move is expected to diversify its portfolio and potentially enhance its market position.

The most recent analyst rating on (AU:MGX) stock is a Buy with a A$0.38 price target. To see the full list of analyst forecasts on Mount Gibson Iron Limited stock, see the AU:MGX Stock Forecast page.

Mount Gibson Iron Limited Issues New Securities Under Employee Incentive Scheme

Mount Gibson Iron Limited has announced the issuance of 876,800 ordinary fully paid securities, which will be quoted on the ASX. This move is part of an employee incentive scheme, reflecting the company’s efforts to align employee interests with shareholder value and potentially enhance its market position.

The most recent analyst rating on (AU:MGX) stock is a Buy with a A$0.38 price target. To see the full list of analyst forecasts on Mount Gibson Iron Limited stock, see the AU:MGX Stock Forecast page.

Mount Gibson Iron Expands into Gold with Central Tanami Project Acquisition

Mount Gibson Iron Limited has announced an agreement to acquire a 50% stake in the Central Tanami Gold Project. This strategic move is expected to diversify the company’s portfolio beyond iron ore, potentially enhancing its market positioning and offering new opportunities for growth. The acquisition could have significant implications for stakeholders, as it may influence the company’s operational focus and financial performance.

The most recent analyst rating on (AU:MGX) stock is a Buy with a A$0.48 price target. To see the full list of analyst forecasts on Mount Gibson Iron Limited stock, see the AU:MGX Stock Forecast page.