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Mount Gibson Iron Limited (AU:MGX)
ASX:MGX

Mount Gibson Iron Limited (MGX) AI Stock Analysis

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AU

Mount Gibson Iron Limited

(Sydney:MGX)

Rating:61Neutral
Price Target:
AU$0.50
▲(78.57%Upside)
Mount Gibson Iron Limited's overall score is influenced by strong financial performance, despite past volatility, which is a major strength. However, bearish technical indicators and a negative P/E ratio highlight valuation concerns. These mixed signals result in a moderate overall stock score.

Mount Gibson Iron Limited (MGX) vs. iShares MSCI Australia ETF (EWA)

Mount Gibson Iron Limited Business Overview & Revenue Model

Company DescriptionMount 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 MoneyMount Gibson Iron Limited generates revenue primarily through the extraction, processing, and sale of iron ore. The company operates several mining sites, including the Koolan Island and Shine iron ore projects, where it extracts high-grade hematite ore. The processed ore is then sold to international markets, predominantly in Asia, where demand for steel production is high. Revenue streams are driven by the volume of iron ore sold and the prevailing market prices for iron ore, which can fluctuate based on global supply and demand dynamics. Additionally, Mount Gibson Iron may enter into off-take agreements and partnerships with steel producers and traders to secure long-term sales contracts, providing a stable revenue base. The company's earnings are also influenced by operational efficiency, cost control measures, and investments in infrastructure to optimize mining and transportation processes.

Mount Gibson Iron Limited Earnings Call Summary

Earnings Call Date:Feb 18, 2025
(Q4-2024)
|
% Change Since: -6.67%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Neutral
Mount Gibson Iron had a strong financial performance for the full year with increased sales and a robust safety record. However, the June quarter was impacted by adverse pricing adjustments and volatile iron ore prices, leading to higher cash operating costs and reduced cash flow. The company is strategically investing in junior resources while preparing for temporary shipping reductions. Despite challenges, the company remains in a strong position for future cash flow generation.
Q4-2024 Updates
Positive Updates
Increased Iron Ore Sales
Iron ore sales from Koolan Island increased by over 20% on the prior quarter to 0.9 million wet metric tonnes, with full year sales reaching 4.1 million tonnes.
Strong Financial Year Performance
Mount Gibson's financial performance was strong with group cash flow of $290 million before tax and working capital movements, and cash and investment reserves increased by $274 million over the financial year.
Safety Improvement
The 12-month lost time injury frequency rate remained at 0 incidents per 1 million man-hours worked, and the total recordable injury frequency rate reduced from 5.4 to 4.4 incidents per 1 million man-hours.
Strategic Investments
Increased investments in several junior resources companies with market value rising from $5 million in the March quarter to approximately $19 million at quarter end.
Negative Updates
Adverse Provisional Pricing Adjustments
June quarter cash flow was impacted by adverse provisional pricing adjustments totaling $29 million, reducing the quarter's net cash flow to $1 million.
Higher Cash Operating Costs
Cash operating costs were approximately 5% above guidance, averaging $97 per wet metric tonne in the quarter.
Volatile Iron Ore Prices
Benchmark 62% Fe price averaged 10% lower than the March quarter, impacting financial results with a USD 103 to USD 81 per tonne FOB realized price after adjustments.
Temporary Reduction in Shipping and Cargo Grades
September quarter shipping and cargo grades will be temporarily reduced due to repositioning activities and remediation support work.
Expected Accounting Impairment
An accounting impairment of Koolan's carrying values is expected as at 30 June '24 due to prevailing iron ore prices and outlook.
Company Guidance
In the earnings call for Mount Gibson Iron's Q4 2024, CEO Peter Kerr highlighted the company's strong production and financial performance for the fiscal year, despite some challenges in the June quarter. Iron ore sales from Koolan Island increased by over 20% from the previous quarter, reaching 0.9 million wet metric tonnes with a 65.2% Fe grade, contributing to a full-year total of 4.1 million tonnes. However, cash flow for the June quarter was impacted by adverse provisional pricing adjustments, reducing net cash flow to $1 million from an operating cash flow of $30 million before adjustments. Full-year sales revenue was $670 million FOB, with an operating cash flow of $290 million. Kerr also noted that the company's cash and investment reserves grew significantly, reaching $436 million by the end of the June quarter. Additionally, safety performance improved, with a lost time injury frequency rate of 0 incidents per 1 million man-hours and a total recordable injury frequency rate decreasing to 4.4 incidents. Looking ahead, the company aims to ship 2.7 to 3 million tonnes in fiscal 2025, with a strategic focus on maximizing cash flow from Koolan Island and exploring new investment opportunities.

Mount Gibson Iron Limited Financial Statement Overview

Summary
Mount Gibson Iron Limited's financial statements suggest a company in recovery with solid financial performance in the most recent period. The income statement shows strong revenue growth and profitability, the balance sheet is stable with low leverage, and cash flows are healthy. Despite past volatility, the current financial position is strong, but maintaining this trajectory will be essential to mitigate potential risks.
Income Statement
78
Positive
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
75
Positive
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
80
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
395.96M667.82M452.69M186.11M300.46M455.56M
Gross Profit
34.98M210.62M111.85M-30.52M84.69M125.33M
EBIT
12.52M156.72M94.74M-90.90M99.22M102.37M
EBITDA
-4.33M90.77M158.52M-171.88M135.57M166.78M
Net Income Common Stockholders
-203.98M6.43M5.18M-174.12M64.01M84.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
345.53M463.03M162.41M125.57M351.58M423.23M
Total Assets
393.05M664.30M724.94M760.14M984.11M804.78M
Total Debt
2.91M11.85M23.05M11.88M18.10M12.23M
Net Debt
-55.62M-24.41M-31.99M-65.70M-77.18M-99.43M
Total Liabilities
62.91M118.13M185.71M227.04M264.40M134.05M
Stockholders Equity
290.20M546.17M539.23M533.10M719.71M670.73M
Cash FlowFree Cash Flow
79.27M267.32M56.59M-196.08M-43.10M77.27M
Operating Cash Flow
163.06M328.21M130.62M21.86M171.99M167.91M
Investing Cash Flow
-142.33M-335.03M-131.00M-10.12M-163.55M-70.18M
Financing Cash Flow
-16.06M-12.01M-22.47M-30.94M-25.84M-34.74M

Mount Gibson Iron Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.31
Negative
100DMA
0.31
Negative
200DMA
0.31
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
33.05
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGX, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.31, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MGX.

Mount Gibson Iron 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
AUMGX
61
Neutral
$330.27M56.60-35.86%-39.92%-249.60%
51
Neutral
$2.02B-1.12-21.36%3.65%2.87%-30.54%
$21.02M5.334.26%
AUGWR
47
Neutral
AU$30.10M1.4417.20%
AUM4M
34
Underperform
AU$39.78M-277.03%-540.00%
AUTI1
AU$30.22M
AUEQX
28
Underperform
AU$15.77M-15.31%32.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MGX
Mount Gibson Iron Limited
0.28
-0.13
-32.93%
IRNRF
Iron Road Ltd
0.02
-0.04
-66.67%
AU:GWR
GWR Group Limited
0.09
0.00
0.00%
AU:M4M
Kogi Iron Ltd.
0.01
-0.02
-66.67%
AU:TI1
Tombador Iron Ltd.
0.35
0.00
0.00%
AU:EQX
Equatorial Resources Limited
0.15
<0.01
7.14%

Mount Gibson Iron Limited Corporate Events

Mount Gibson Iron Limited Announces Cessation of Securities
May 2, 2025

Mount Gibson Iron Limited announced the cessation of 4,466,043 ordinary fully paid securities due to an on-market buy-back, effective April 17, 2025. This move is part of the company’s capital management strategy, potentially impacting its share value and market perception, and reflecting its ongoing efforts to optimize shareholder value.

Mount Gibson Iron Limited Announces Chairman Succession
Apr 16, 2025

Mount Gibson Iron Limited announced a leadership change with Mr. Lee Seng Hui stepping down as Chairman, to be succeeded by Mr. Brett Smith, a seasoned mining executive. This transition is part of the company’s succession planning, with Mr. Smith bringing over 32 years of international experience to the role. The company maintains its strong corporate governance structure with Mr. Simon Bird continuing as the Lead Independent Director to manage potential conflicts. This change is not expected to impact the company’s operations or market position significantly, as both Mr. Lee and Mr. Smith remain on the board in different capacities.

Mount Gibson Iron Reports Steady Q1 Performance Amid Weather Challenges
Apr 15, 2025

Mount Gibson Iron Limited reported steady production and cashflow generation for the March 2025 quarter, with iron ore sales reaching 0.7 million wet metric tonnes and generating $106 million in revenue. Despite weather-related interruptions, including two tropical cyclones, the company maintained its production targets and financial performance, with a strong cash margin and a robust cash position of $460 million. The company also continued its capital management strategy through an on-market share buyback, enhancing its financial flexibility for potential acquisitions.

Mount Gibson Iron Limited Updates on Buy-Back Program
Apr 15, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of April 15, 2025, the company has repurchased a total of 38,803,598 ordinary fully paid securities, with 215,900 bought back on the previous day alone. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Apr 11, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing share buy-back program. As of April 11, 2025, the company has repurchased a total of 38,532,576 of its ordinary fully paid shares, indicating a strategic move to potentially enhance shareholder value and optimize its capital structure.

Mount Gibson Iron Limited Updates on Buy-Back Program
Apr 10, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of April 10, 2025, the company has repurchased a total of 38,509,485 ordinary fully paid securities, with 612,057 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Progress
Apr 9, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of April 9, 2025, the company has bought back a total of 37,897,428 securities, including 773,085 on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Announces Cessation of Securities
Apr 8, 2025

Mount Gibson Iron Limited has announced the cessation of 3,546,144 ordinary fully paid securities due to an on-market buy-back, effective April 8, 2025. This move is part of the company’s capital management strategy, potentially impacting its share value and market positioning by reducing the number of shares in circulation.

Mount Gibson Iron Limited Updates on Buy-Back Program
Apr 8, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of April 8, 2025, the company has repurchased a total of 36,724,894 securities, with an additional 399,449 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Buy-Back Program
Apr 7, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company has bought back a total of 34,931,371 securities, with an additional 1,793,523 securities repurchased on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Apr 4, 2025

Mount Gibson Iron Limited has announced an update on its ongoing on-market buy-back program, revealing that a total of 34,337,555 ordinary fully paid securities have been bought back to date, with 593,816 securities purchased on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and enhance shareholder value, reflecting a proactive approach to optimizing its financial operations.

Mount Gibson Iron Limited Updates on Share Buy-Back Progress
Apr 2, 2025

Mount Gibson Iron Limited has announced an update on its ongoing on-market buy-back program, revealing that a total of 443,299 ordinary fully paid securities were bought back on the previous day, adding to a cumulative total of 33,442,079 securities. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach in its financial management.

Mount Gibson Iron Updates on Share Buy-Back Progress
Apr 1, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of April 1, 2025, the company has repurchased a total of 33,094,910 ordinary fully paid securities, with an additional 347,169 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates Share Buy-Back Progress
Mar 31, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing share buy-back program. As of March 31, 2025, the company has repurchased a total of 32,696,469 shares, with an additional 398,441 shares bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Mar 28, 2025

Mount Gibson Iron Limited has announced an update on its ongoing share buy-back program, revealing that a total of 630,435 ordinary fully paid securities were bought back on the previous day, bringing the total number of securities repurchased to over 32 million. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Mar 26, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of March 26, 2025, the company has repurchased a total of 30,839,908 ordinary fully paid securities, including 48,497 on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Buy-Back Program
Mar 25, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of March 25, 2025, the company has repurchased a total of 30,296,306 ordinary fully paid securities, with 495,105 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Mar 20, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of March 20, 2025, the company has repurchased a total of 645,350 ordinary fully paid securities on the previous day, contributing to an overall total of 28,667,715 securities bought back since the program’s initiation. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Market Buy-Back Program
Mar 18, 2025

Mount Gibson Iron Limited has announced an update on its ongoing on-market buy-back program. As of March 18, 2025, the company has repurchased a total of 27,600,404 ordinary fully paid securities, with an additional 815,642 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates Share Buy-Back Program
Mar 17, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing share buy-back program. As of March 17, 2025, the company has repurchased a total of 27,600,404 ordinary fully paid securities, including 1,072,007 on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Announces Cessation of Securities
Mar 14, 2025

Mount Gibson Iron Limited announced the cessation of 7,266,853 ordinary fully paid securities due to an on-market buy-back, effective March 13, 2025. This move is part of the company’s capital management strategy, potentially impacting its share value and market perception positively by reducing the number of shares outstanding.

Mount Gibson Iron Limited Updates on Share Buy-back Progress
Mar 14, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing share buy-back program. As of March 14, 2025, the company has repurchased a total of 25,749,486 ordinary fully paid securities, with an additional 778,911 securities bought back on the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates Share Buy-Back Progress
Mar 13, 2025

Mount Gibson Iron Limited has announced an update on its ongoing share buy-back program, reporting that a total of 1,851,109 ordinary fully paid securities were bought back on the previous day, bringing the total number of securities bought back to 23,898,377. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Mar 12, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing share buy-back program. As of March 12, 2025, the company has repurchased a total of 23,898,377 ordinary fully paid securities, including 180,658 shares bought back on the previous day. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, which may positively impact its market positioning and investor confidence.

Mount Gibson Iron Limited Updates Share Buy-Back Progress
Mar 11, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing share buy-back program. As of March 11, 2025, the company has repurchased a total of 22,794,842 shares, with an additional 922,877 shares bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Updates on Share Buy-Back Progress
Mar 10, 2025

Mount Gibson Iron Limited announced an update on its ongoing share buy-back program, reporting a total of 22,617,067 securities bought back before the previous day and an additional 177,775 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Mount Gibson Iron Limited Updates on Share Buy-Back Program
Mar 6, 2025

Mount Gibson Iron Limited has announced an update regarding its ongoing on-market buy-back program. As of March 6, 2025, the company has repurchased a total of 21,640,685 ordinary fully paid securities, with 430,000 bought back on the previous day. This buy-back initiative is part of Mount Gibson’s strategy to manage its capital structure and potentially enhance shareholder value.

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.