Image source: Andriy Solovyov, Shutterstock

Highlights

  • Mount Gibson is a manufacturer and exporter of iron ore products
  • In FY23, the company registered 821.7% YoY rise in EBITDA to AUD 224.10 million
  • In 2QFY24, revenue stood at AUD 228 million and in 1HFY24, it stood at AUD 436 million

Mount Gibson Iron Limited (ASX: MGX) is an ASX-listed materials company which is engaged in the manufacturing and export of iron ore products. The company operates through two segments, Koolan Island and Mid-West.

In the financial year 2023 (FY23), the company reported a 217.2% YoY jump in revenue to AUD 452.61 million and 821.7% YoY growth in EBITDA to AUD 224.10 million. Net income during the reported period increased by 103% YoY to AUD 5.18 million and net cash surged by 22.6% YoY to AUD 139.37 million.

Recent quarter’s performance

In the second quarter of FY24, the company delivered positive financial results with a sale of 1.2 million wet metric tonnes of iron ore at an average grade of 65.3% Fe. In 1HFY24, Koolan Island sold 2.5 million wmt of iron ore. In 2QFY24, the company reported revenue of AUD 228 million and in 1HFY24, it stood at AUD 436 million.

Business expansion

The company is actively searching for investment opportunities to expand its operations in Australia, with focus on bulk commodities and base metals. MGX holds stocks worth around AUD 5 million in a few junior resource development business as it anticipates future strategic potential customers.

The company is investing a lot of effort to develop new projects, and visiting potential acquisition sites.

Outlook

In FY24, the company targets sales of 3.8 – 4.2 million metric tons with expected cash expense of AUD 65- 70 per metric ton. The company’s outlook is characterized by enhanced exploration, increased focus on acquisition, an emphasis on eastern footwall rehabilitation and sustained cash flow.

Share performance of MGX

MGX shares closed 2.75% lower at AUD 0.53 apiece. With this, in the past one year, the share price of MGX has decreased by 11.67% and in last six months, it has increased by 13.98%.

The 52-week high of MGX is AUD 0.665, recorded on 30 January 2023, and the 52-week low is AUD 0.375, recorded on 1 June 2023.

 MGX Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 31 January 2024. The reference data in this report has been partly sourced from EODHD/Others.