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Mount Gibson Iron

ASX:MGX
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGX
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Mount Gibson Iron Limited, together with its subsidiaries, engages in the mining, exploration, crushing, transportation, and sale of hematite iron ore deposits in Australia. The last earnings update was 65 days ago. More info.


Add to Portfolio Compare Print
  • Mount Gibson Iron has significant price volatility in the past 3 months.
MGX Share Price and Events
7 Day Returns
8.4%
ASX:MGX
-2.3%
AU Metals and Mining
0.5%
AU Market
1 Year Returns
169.8%
ASX:MGX
11.2%
AU Metals and Mining
4.9%
AU Market
MGX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mount Gibson Iron (MGX) 8.4% 26.8% 100% 169.8% 427.3% 58.9%
AU Metals and Mining -2.3% 0.8% 14.6% 11.2% 77% 7.7%
AU Market 0.5% 1.9% 8% 4.9% 19.5% 6.3%
1 Year Return vs Industry and Market
  • MGX outperformed the Metals and Mining industry which returned 11.2% over the past year.
  • MGX outperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
MGX
Industry
5yr Volatility vs Market

MGX Value

 Is Mount Gibson Iron undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mount Gibson Iron to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mount Gibson Iron.

ASX:MGX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MGX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.132 (1 + (1- 30%) (0%))
1.088
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.088 * 5.96%)
8.8%

Discounted Cash Flow Calculation for ASX:MGX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mount Gibson Iron is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:MGX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.8%)
2019 1.13 Est @ -85.59% 1.04
2020 0.46 Est @ -59.22% 0.39
2021 0.27 Est @ -40.76% 0.21
2022 0.20 Est @ -27.84% 0.14
2023 0.16 Est @ -18.79% 0.11
2024 0.14 Est @ -12.46% 0.08
2025 0.13 Est @ -8.03% 0.07
2026 0.12 Est @ -4.93% 0.06
2027 0.12 Est @ -2.76% 0.06
2028 0.12 Est @ -1.24% 0.05
Present value of next 10 years cash flows A$2.21
ASX:MGX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$0.12 × (1 + 2.31%) ÷ (8.8% – 2.31%)
A$1.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1.86 ÷ (1 + 8.8%)10
A$0.80
ASX:MGX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$2.21 + A$0.80
A$3.01
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$3.01 / 1,128.37
A$0
ASX:MGX Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.00
Current discount Discount to share price of A$1.16
= -1 x (A$1.16 - A$0.00) / A$0.00
-43376.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mount Gibson Iron is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mount Gibson Iron's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mount Gibson Iron's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MGX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.06
ASX:MGX Share Price ** ASX (2019-04-24) in AUD A$1.16
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.61x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.19x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mount Gibson Iron.

ASX:MGX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MGX Share Price ÷ EPS (both in AUD)

= 1.16 ÷ 0.06

19.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mount Gibson Iron is overvalued based on earnings compared to the AU Metals and Mining industry average.
  • Mount Gibson Iron is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Mount Gibson Iron's expected growth come at a high price?
Raw Data
ASX:MGX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
7.5%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 0.67x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Mount Gibson Iron, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mount Gibson Iron's assets?
Raw Data
ASX:MGX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.46
ASX:MGX Share Price * ASX (2019-04-24) in AUD A$1.16
Australia Metals and Mining Industry PB Ratio Median Figure of 584 Publicly-Listed Metals and Mining Companies 1.51x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.68x
ASX:MGX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MGX Share Price ÷ Book Value per Share (both in AUD)

= 1.16 ÷ 0.46

2.5x

* Primary Listing of Mount Gibson Iron.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mount Gibson Iron is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Mount Gibson Iron's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Mount Gibson Iron has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGX Future Performance

 How is Mount Gibson Iron expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • No analysts cover Mount Gibson Iron, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mount Gibson Iron expected to grow at an attractive rate?
  • Mount Gibson Iron's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Mount Gibson Iron's earnings growth is expected to exceed the Australia market average.
  • Unable to compare Mount Gibson Iron's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:MGX Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MGX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 7.5%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 1.2%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MGX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MGX Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30
2020-06-30
2019-06-30
ASX:MGX Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 314 75 64
2018-09-30 284 87 82
2018-06-30 254 99 99
2017-12-31 206 77 85
2017-09-30 194 41 55
2017-06-30 183 5 26
2016-12-31 205 7 117
2016-09-30 220 6 98
2016-06-30 235 6 80
2016-03-31 248 -3 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mount Gibson Iron's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Mount Gibson Iron is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MGX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Mount Gibson Iron Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MGX Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30
2020-06-30
2019-06-30
ASX:MGX Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.06
2018-09-30 0.07
2018-06-30 0.09
2017-12-31 0.08
2017-09-30 0.05
2017-06-30 0.02
2016-12-31 0.11
2016-09-30 0.09
2016-06-30 0.07
2016-03-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mount Gibson Iron is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mount Gibson Iron's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mount Gibson Iron has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGX Past Performance

  How has Mount Gibson Iron performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mount Gibson Iron's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mount Gibson Iron has delivered over 20% year on year earnings growth in the past 5 years.
  • Mount Gibson Iron's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Mount Gibson Iron's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.
Earnings and Revenue History
Mount Gibson Iron's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mount Gibson Iron Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MGX Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 314.49 64.11 12.77
2018-09-30 284.31 81.60 13.29
2018-06-30 254.13 99.10 13.81
2017-12-31 205.90 84.63 19.19
2017-09-30 194.29 55.12 18.79
2017-06-30 182.69 25.60 18.40
2016-12-31 204.98 116.65 17.85
2016-09-30 220.09 98.48 18.88
2016-06-30 235.19 80.31 19.90
2016-03-31 247.54 8.03 21.82
2015-12-31 259.89 -64.24 23.74
2015-09-30 287.77 -476.87 27.51
2015-06-30 315.64 -889.51 31.28
2014-12-31 330.40 -828.54 30.95
2014-09-30 495.28 -369.18 29.45
2014-06-30 660.16 90.17 27.96
2014-03-31 922.09 147.45 28.03
2013-12-31 946.22 198.54 28.11
2013-09-30 899.55 177.94 29.45
2013-06-30 852.87 157.34 30.80
2013-03-31 770.33 113.26 28.71
2012-12-31 687.78 69.18 26.62
2012-09-30 668.12 115.60 25.09
2012-06-30 648.46 162.02 23.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mount Gibson Iron has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mount Gibson Iron used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • Mount Gibson Iron has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Mount Gibson Iron's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mount Gibson Iron has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGX Health

 How is Mount Gibson Iron's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mount Gibson Iron's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mount Gibson Iron is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mount Gibson Iron's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Mount Gibson Iron's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Mount Gibson Iron has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mount Gibson Iron Company Filings, last reported 3 months ago.

ASX:MGX Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 523.48 0.00 431.00
2018-09-30 523.48 0.00 431.00
2018-06-30 496.82 0.00 457.53
2017-12-31 476.98 0.00 477.45
2017-09-30 476.98 0.00 477.45
2017-06-30 418.98 0.00 446.78
2016-12-31 415.12 0.00 446.57
2016-09-30 415.12 0.00 446.57
2016-06-30 391.94 0.42 400.09
2016-03-31 391.94 0.42 400.09
2015-12-31 290.20 3.51 345.53
2015-09-30 290.20 3.51 345.53
2015-06-30 305.57 2.74 334.00
2014-12-31 341.96 8.11 354.43
2014-09-30 341.96 8.11 354.43
2014-06-30 1,262.02 9.46 519.77
2014-03-31 1,262.02 9.46 519.77
2013-12-31 1,239.62 21.37 483.94
2013-09-30 1,239.62 21.37 483.94
2013-06-30 1,182.05 28.39 376.02
2013-03-31 1,182.05 28.39 376.02
2012-12-31 1,085.99 37.12 278.68
2012-09-30 1,085.99 37.12 278.68
2012-06-30 1,071.34 47.02 292.68
  • Mount Gibson Iron has no debt.
  • Mount Gibson Iron has no debt compared to 5 years ago when it was 1.7%.
  • Mount Gibson Iron has no debt, it does not need to be covered by operating cash flow.
  • Mount Gibson Iron has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Mount Gibson Iron's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mount Gibson Iron has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGX Dividends

 What is Mount Gibson Iron's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.59%
Current annual income from Mount Gibson Iron dividends. Estimated to be 3.16% next year.
If you bought A$2,000 of Mount Gibson Iron shares you are expected to receive A$52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mount Gibson Iron's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
  • Mount Gibson Iron's dividend is below the markets top 25% of dividend payers in Australia (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MGX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MGX Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.04 2.00
2020-06-30 0.04 2.00
2019-06-30 0.03 2.00
ASX:MGX Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-08-14 0.030 5.100
2017-08-15 0.020 4.798
2016-02-16 0.000 0.000
2015-08-19 0.000 0.000
2014-08-19 0.040 15.523
2013-08-22 0.040 4.826
2013-02-18 0.040 7.362
2012-08-22 0.040 5.296
2012-02-10 0.040 3.919
2011-08-11 0.040 2.898

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Mount Gibson Iron has been paying a dividend for less than 10 years.
  • Mount Gibson Iron has only been paying a dividend for 8 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Mount Gibson Iron's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Mount Gibson Iron's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mount Gibson Iron afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mount Gibson Iron has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGX Management

 What is the CEO of Mount Gibson Iron's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Kerr
COMPENSATION A$626,142
TENURE AS CEO 0.5 years
CEO Bio

Mr. Peter W. Kerr, B.Comm, CA, F.Fin, M.AusIMM, M.AICD., has been the Chief Executive Officer at Mount Gibson Iron Limited since October 19, 2018. He served as the Chief Financial Officer of Mount Gibson Iron Limited since September 13, 2012 until October 19, 2018. Mr. Kerr served as the Chief Financial Officer of Bannerman Resources Limited from February 2, 2009 to September 10, 2012. At Bannerman, Mr. Kerr was closely involved in progressing the large-scale Etango Uranium Project in Namibia from exploration through to completion of the feasibility assessment stage, as well as various associated financing and corporate transactions. Mr. Kerr served as the Managing Director and Company Secretary of Northern Gold NL since February 1, 2002. He is an adviser to, the gold industry in Australia and North America. Mr. Kerr served as Chief Financial Officer of GBS Gold International Inc. from December 6, 2005 to January 2009. Mr. Kerr is a Chartered Accountant with over 15 years' experience within and as an advisor to the mining industry in Australia and Canada. Mr. Kerr served as Manager of Corporate at Northern Gold and its former parent entity, PacMin Mining Corporation Limited. From 1999 to 2002, he served as General Manager -Gold for diversified mining house Teck Cominco Limited in Vancouver, Canada. He serves as a Director of Northern Gold NL. He served as a Director of GBS Gold International Inc. from December 6, 2005 to January 2009. He served as a Director of Bannerman Mining Resources (Namibia) Pty Ltd. Mr. Kerr is a Member of the Institute of Chartered Accountants in Australia, as well as a Member of the Canadian Institute of Mining, Metallurgy and Petroleum.

CEO Compensation
  • Peter's compensation has been consistent with company performance over the past year.
  • Peter's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Mount Gibson Iron management team in years:

2.1
Average Tenure
  • The tenure for the Mount Gibson Iron management team is about average.
Management Team

Peter Kerr

TITLE
Chief Executive Officer
COMPENSATION
A$626K
TENURE
0.5 yrs

Scott de Kruijff

TITLE
Chief Operating Officer
COMPENSATION
A$660K
TENURE
3.8 yrs

David Stokes

TITLE
Company Secretary & General Counsel
COMPENSATION
A$492K
TENURE
7 yrs

Gillian Dobson

TITLE
Chief Financial Officer
TENURE
0.5 yrs

J. Fitzgerald

TITLE
Group Financial Controller
Board of Directors Tenure

Average tenure and age of the Mount Gibson Iron board of directors in years:

7.2
Average Tenure
50
Average Age
  • The tenure for the Mount Gibson Iron board of directors is about average.
Board of Directors

Seng-Hui Lee

TITLE
Non-Executive Chairman
COMPENSATION
A$105K
AGE
49
TENURE
5.2 yrs

Alan Jones

TITLE
Independent Non-Executive Director
COMPENSATION
A$100K
AGE
75
TENURE
12.8 yrs

Paul Dougas

TITLE
Independent Non-Executive Director
COMPENSATION
A$87K
TENURE
7.4 yrs

Simon Bird

TITLE
Lead Independent Non-Executive Director
COMPENSATION
A$107K
TENURE
5.3 yrs

Shaofeng Li

TITLE
Non-Executive Director
AGE
51
TENURE
7.2 yrs

Russell Barwick

TITLE
Independent Non-Executive Director
COMPENSATION
A$100K
TENURE
7.4 yrs

Andrew Ferguson

TITLE
Alternate Director
AGE
45
TENURE
6.6 yrs
Who owns this company?
Recent Insider Trading
  • Mount Gibson Iron insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
16. Apr 19 Sell Alan Jones Individual 12. Apr 19 12. Apr 19 -100,000 A$1.17 A$-116,670
06. Dec 18 Buy Simon Bird Individual 05. Dec 18 06. Dec 18 24,000 A$0.53 A$12,679
29. Oct 18 Buy Alan Jones Individual 26. Oct 18 26. Oct 18 100,000 A$0.51 A$50,500
17. Oct 18 Sell Paradice Investment Management Pty Ltd. Company 01. Aug 18 21. Sep 18 -319,533 A$0.47 A$-142,315
17. Oct 18 Buy Paradice Investment Management Pty Ltd. Company 16. Jul 18 13. Sep 18 6,867,181 A$0.52 A$3,462,978
03. Oct 18 Buy Paul Dougas Individual 03. Oct 18 03. Oct 18 200,000 A$0.46 A$91,000
01. Oct 18 Buy Paul Dougas Individual 28. Sep 18 28. Sep 18 100,000 A$0.46 A$46,000
19. Sep 18 Buy Paul Dougas Individual 18. Sep 18 18. Sep 18 100,000 A$0.48 A$48,000
19. Sep 18 Sell Spheria Asset Management Pty Ltd Company 29. Aug 18 19. Sep 18 -1,519,802 A$0.51 A$-742,137
10. Jul 18 Sell Pinnacle Fund Services Limited Company 15. Jun 18 15. Jun 18 -368,341 A$0.45 A$-166,176
10. Jul 18 Buy Pinnacle Fund Services Limited Company 14. Mar 18 09. Jul 18 20,622,788 A$0.39 A$8,041,392
10. Jul 18 Sell Spheria Asset Management Pty Ltd Company 15. Jun 18 15. Jun 18 -368,341 A$0.45 A$-166,454
10. Jul 18 Buy Spheria Asset Management Pty Ltd Company 14. Mar 18 09. Jul 18 20,622,788 A$0.44 A$8,221,411
30. May 18 Buy APAC Resources Limited Company 29. May 18 29. May 18 28,662,489 A$0.42 A$12,038,215
X
Management checks
We assess Mount Gibson Iron's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mount Gibson Iron has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGX News

Simply Wall St News

Have Insiders Been Buying Mount Gibson Iron Limited (ASX:MGX) Shares?

So before you buy or sell Mount Gibson Iron Limited (ASX:MGX), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Mount Gibson Iron. … In total, Mount Gibson Iron insiders bought more than they sold over the last year

Simply Wall St -

Should We Worry About Mount Gibson Iron Limited's (ASX:MGX) P/E Ratio?

We'll show how you can use Mount Gibson Iron Limited's (ASX:MGX) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Mount Gibson Iron's P/E ratio is 18.08. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Do Institutions Own Shares In Mount Gibson Iron Limited (ASX:MGX)?

A look at the shareholders of Mount Gibson Iron Limited (ASX:MGX) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Mount Gibson Iron is not a large company by global standards.

Simply Wall St -

Imagine Holding Mount Gibson Iron Shares While The Price Zoomed 303% Higher

Take, for example, the Mount Gibson Iron Limited (ASX:MGX) share price, which skyrocketed 303% over three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St -

Why We Think Mount Gibson Iron Limited (ASX:MGX) Could Be Worth Looking At

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Mount Gibson Iron Limited (ASX:MGX) due to its excellent fundamentals in more than one area.

Simply Wall St -

How Do Mount Gibson Iron Limited’s (ASX:MGX) Returns On Capital Compare To Peers?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Mount Gibson Iron Limited (ASX:MGX) A Great Dividend Stock?

Historically, Mount Gibson Iron Limited (ASX:MGX) has paid a dividend to shareholders. … Let's take a look at Mount Gibson Iron in more detail. … View our latest analysis for Mount Gibson Iron

Simply Wall St -

Is Mount Gibson Iron Limited (ASX:MGX) A Financially Sound Company?

Mount Gibson Iron Limited (ASX:MGX), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is MGX will have to follow strict debt obligations which will reduce its financial flexibility. … Is financial flexibility worth the lower cost of capital.

Simply Wall St -

How Many Mount Gibson Iron Limited (ASX:MGX) Shares Do Institutions Own?

If you want to know who really controls Mount Gibson Iron Limited (ASX:MGX), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Mount Gibson Iron is not a large company by global standards.

Simply Wall St -

Why Mount Gibson Iron Limited (ASX:MGX) Is An Attractive Investment To Consider

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

MGX Company Info

Description

Mount Gibson Iron Limited, together with its subsidiaries, engages in the mining, exploration, crushing, transportation, and sale of hematite iron ore deposits in Australia. The company primarily operates the Koolan Island mine located in the Kimberley coast of Western Australia; and the Extension Hill/Iron Hill mine located in the Mount Gibson range in the mid-west region of Western Australia. Mount Gibson Iron Limited was founded in 1996 and is based in West Perth, Australia.

Details
Name: Mount Gibson Iron Limited
MGX
Exchange: ASX
Founded: 1996
A$1,252,490,400
1,128,369,730
Website: http://www.mtgibsoniron.com.au
Address: Mount Gibson Iron Limited
2 Kings Park Road,
Level 1,
West Perth,
Western Australia, 6005,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MGX Ordinary Shares Australian Securities Exchange AU AUD 17. Jan 2002
OTCPK MTGR.F Ordinary Shares Pink Sheets LLC US USD 17. Jan 2002
DB FWQ Ordinary Shares Deutsche Boerse AG DE EUR 17. Jan 2002
CHIA MGX Ordinary Shares Chi-X Australia AU AUD 17. Jan 2002
OTCPK MTGR.Y ADR Pink Sheets LLC US USD 03. Jan 2012
Number of employees
Current staff
Staff numbers
163
Mount Gibson Iron employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 10:31
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/03/31
Last earnings filing: 2019/02/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.