ASX:MGX

Stock Analysis Report

Executive Summary

Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore deposits in Australia.

Snowflake

Fundamentals

Excellent balance sheet with solid track record.

Risks

  • Mount Gibson Iron has significant price volatility in the past 3 months.
  • Mount Gibson Iron is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Mount Gibson Iron's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

MGX

1.5%

AU Metals and Mining

1.0%

AU Market


1 Year Return

59.6%

MGX

14.5%

AU Metals and Mining

6.9%

AU Market

MGX outperformed the Metals and Mining industry which returned 14.5% over the past year.

MGX outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

MGXIndustryMarket
7 Day-2.0%1.5%1.0%
30 Day2.7%6.2%4.2%
90 Day-34.5%-3.6%1.6%
1 Year69.0%59.6%22.6%14.5%13.0%6.9%
3 Year201.7%154.2%77.8%54.7%39.6%20.9%
5 Year58.9%33.9%61.7%25.2%52.8%18.7%

Price Volatility Vs. Market

How volatile is Mount Gibson Iron's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

6.27x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Mount Gibson Iron's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Mount Gibson Iron's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Mount Gibson Iron is good value based on earnings compared to the AU Metals and Mining industry average.

Mount Gibson Iron is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

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

Mount Gibson Iron is good value based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

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

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Mount Gibson Iron is high growth as no revenue estimate data is available.

Mount Gibson Iron's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Mount Gibson Iron's revenue growth to the Australia market average as no estimate data is available.

Mount Gibson Iron's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Mount Gibson Iron's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Mount Gibson Iron is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

61.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 less than its 5-year average (34.5% vs 61%)

Mount Gibson Iron's earnings growth has exceeded the AU Metals and Mining industry average in the past year (34.5% vs 7.8%).


Return on Equity

Mount Gibson Iron has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Mount Gibson Iron used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

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).


Next Steps

Financial Health

How is Mount Gibson Iron's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Mount Gibson Iron's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 0.3% today).

Debt is well covered by operating cash flow (3387.6%, greater than 20% of total debt).

Mount Gibson Iron earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 255.4x debt.


Next Steps

Dividend

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

3.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mount Gibson Iron's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Mount Gibson Iron's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

Mount Gibson Iron has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Mount Gibson Iron has only been paying a dividend for 8 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Peter Kerr 0

0.9yrs

Tenure

AU$1,150,877

Compensation

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 1, 2018. He served as the Chief Financial Officer of Mount Gibson Ir ...


CEO Compensation Analysis

Peter's remuneration is about average for companies of similar size in Australia.

Peter's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

The tenure for the Mount Gibson Iron management team is about average.


Board Age and Tenure

7.6yrs

Average Tenure

51yo

Average Age

The tenure for the Mount Gibson Iron board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$712,22817 Sep 19
APAC Resources Limited
EntityCompany
Shares955,840
Max PriceAU$0.75
BuyAU$1,264,09711 Sep 19
APAC Resources Limited
EntityCompany
Shares1,726,399
Max PriceAU$0.74
BuyAU$753,76506 Sep 19
APAC Resources Limited
EntityCompany
Shares1,060,000
Max PriceAU$0.71
BuyAU$119,30105 Sep 19
APAC Resources Limited
EntityCompany
Shares178,595
Max PriceAU$0.67
SellAU$116,67016 Apr 19
Alan Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$1.17
BuyAU$12,67906 Dec 18
Simon Bird
EntityIndividual
Role
Lead Director
Lead Independent Non-Executive Director
Shares24,000
Max PriceAU$0.53
BuyAU$50,50029 Oct 18
Alan Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.51
BuyAU$91,00003 Oct 18
Paul Dougas
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares200,000
Max PriceAU$0.46
BuyAU$46,00001 Oct 18
Paul Dougas
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.46

Ownership Breakdown


Management Team

  • Peter Kerr

    Chief Executive Officer

    • Tenure: 0.9yrs
    • Compensation: AU$1.15m
  • David Stokes

    Company Secretary & General Counsel

    • Tenure: 7.4yrs
    • Compensation: AU$744.93k
  • J. Fitzgerald

    Group Financial Controller

    • Tenure: 0yrs
  • Scott de Kruijff

    Chief Operating Officer

    • Tenure: 4.2yrs
    • Compensation: AU$898.03k
  • Gillian Dobson

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: AU$515.30k

Board Members

  • Russell Barwick

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$103.50k
  • Simon Bird

    Lead Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: AU$111.00k
  • Shaofeng Li (52yo)

    Non-Executive Director

    • Tenure: 7.6yrs
  • Seng-Hui Lee (50yo)

    Non-Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: AU$104.63k
  • Alan Jones (76yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: AU$103.50k
  • Andrew Ferguson (46yo)

    Alternate Director

    • Tenure: 7yrs
  • Paul Dougas

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$90.50k

Company Information

Mount Gibson Iron Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mount Gibson Iron Limited
  • Ticker: MGX
  • Exchange: ASX
  • Founded: 1996
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$847.557m
  • Shares outstanding: 1.13b
  • Website: https://www.mtgibsoniron.com.au

Number of Employees


Location

  • Mount Gibson Iron Limited
  • 2 Kings Park Road
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2002
FWQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2002
MTGR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2002
MGXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2002
MTGR.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2012

Biography

Mount Gibson Iron Limited, together with its subsidiaries, engages in mining and processing of hematite iron ore deposits in Australia. The company primarily operates the Extension Hill mine site in the Mi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:31
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.