Mount Gibson Iron Limited (MGX) AI Stock Analysis

• Market Cap: AU$554.80M
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -48.05%
• EPS Growth: -1394.34%
• Country: AU
• Employees: 389
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): >-0.01
• Shares Outstanding: 1,180,428,700
• 10 Day Avg. Volume: 1,584,521
• 30 Day Avg. Volume: 2,140,510
• PEG Ratio: <0.01
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 9.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$0.50 ▲(6.38% Upside)

Mount Gibson Iron Limited's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability issues. While the technical analysis shows bullish momentum, overbought conditions suggest caution. The valuation is weak due to a negative P/E ratio and lack of dividend yield, further weighing down the score.

Mount Gibson Iron Limited Business Overview & Revenue Model

Company Description

Mount Gibson Iron Limited (MGX) is an Australian iron ore mining company primarily engaged in the exploration, development, and production of iron ore in Western Australia. The company operates in the mining sector, focusing on the extraction and export of iron ore, which is a key raw material for steel production. MGX's core products include high-grade iron ore fines and lump iron ore, catering mainly to international markets, particularly in Asia.

How the Company Makes Money

Mount Gibson Iron Limited generates revenue primarily through the sale of iron ore products. The company produces high-quality iron ore fines and lump ore, which are sold to various customers, including steel manufacturers and traders, both domestically and internationally. The revenue model is largely dependent on the global demand for iron ore, market prices, and operational efficiency. Key revenue streams include direct sales contracts with customers, long-term supply agreements, and spot market sales. Additionally, MGX benefits from partnerships with logistics providers for efficient transportation of its products to ports, enhancing its ability to deliver to international markets. Fluctuations in iron ore prices on global markets, as well as operational factors such as production costs and mining efficiency, play significant roles in the company's profitability.

Mount Gibson Iron Limited Financial Statement Overview

Summary

Mount Gibson Iron Limited has shown strong revenue growth and profitability recovery with a stable balance sheet and robust cash flows. The improvement in gross and net profit margins, low debt levels, and strong cash generation are positive indicators. However, historical volatility in financial metrics is a potential concern.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	330.52M	330.52M	667.82M	452.69M	186.11M	300.46M
Gross Profit	227.00K	227.00K	210.62M	111.85M	-30.52M	84.69M
EBITDA	-57.37M	4.50M	90.77M	158.52M	-171.88M	135.57M
Net Income	-82.19M	-82.19M	6.43M	5.18M	-174.12M	64.01M
Balance Sheet
Total Assets	582.67M	582.67M	664.30M	724.94M	760.14M	984.11M
Cash, Cash Equivalents and Short-Term Investments	461.82M	461.82M	463.03M	162.41M	125.57M	351.58M
Total Debt	5.29M	5.29M	11.85M	23.05M	11.88M	18.10M
Total Liabilities	129.49M	129.49M	118.13M	185.71M	227.04M	264.40M
Stockholders Equity	453.18M	453.18M	546.17M	539.23M	533.10M	719.71M
Cash Flow
Free Cash Flow	34.19M	34.19M	267.32M	56.59M	-196.08M	-43.10M
Operating Cash Flow	98.45M	98.45M	328.21M	130.62M	21.86M	171.99M
Investing Cash Flow	-70.20M	-59.84M	-335.03M	-131.00M	-10.12M	-163.55M
Financing Cash Flow	-25.60M	-25.66M	-12.01M	-22.47M	-30.94M	-25.84M

Mount Gibson Iron Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.47 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.39, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 76.50 is Negative, neither overbought nor oversold. The STOCH value of 86.44 is Negative, 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MGX	54 Neutral	AU$554.80M	―	-16.34%	―	-48.05%	-1394.34%
GWR	47 Neutral	AU$37.21M	4.42	19.09%	―	―	―
IRD	45 Neutral	AU$34.12M	6.72	3.77%	―	―	―
M4M	34 Underperform	AU$34.56M	―	-92.18%	―	―	66.67%
EQX	28 Underperform	AU$26.95M	―	-32.09%	―	―	-141.04%

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.