Mount Gibson Iron Ltd moves down on ore reserves and mineral resources’ statement

This statement ending June 30, 2018 is in context to the ore reserves and the mineral resource of the company Mount Gibson Iron Limited (ASX: MGX). The iron ore with average grade of 61.8% Fe out of total mineral resource is estimated to be around 76.4 million tonnes, while ore reserves moved up to 21.0Mt at 65.5% Fe against last year’s 12.8Mt at 66.0% Fe.

Mr. Peter Kerr, the CEO of Mount Gibson is very hopeful about the Flagship Koolan Island restart project which is on the way to begin the sales of high grade ore sales in the march quarter of 2019. Mr. Peter Kerr is very satisfied that there is an increase in the ore reserves at the Koolan Island by 64% in the month of April having an upper hand both in terms of mine life and significant value to the premium quality of iron ore production opportunity. Once the sale will begin, the ore reserves at Koolan islands producing premium quality iron ore (hematite) will be in the top list of iron ore mines in Australia and this will in turn help to create long term value with their shareholders.

The company has targeted to begin with continuous focus to extract maximum benefits from its iron hill operation in the mid-west till the last. The mining is expected to end by 2018 so that sales might end by quarter one of 2019. [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]

As per the updates regarding the related ore and mineral resources, there is a mining depletion of total 3.8 Mt since 30 June 2017. A re-estimation and reinterpretation of these deposits in the month of December 2017 has resulted in the increased in the Iron hill mineral resource by 0.9 Mt. At Koolan island restart project, the minerals got reduced as a result of removal of residual by approximately 8.6 Mt. There were no changes in the mineral at extension hill, Shine and Tallering Peak. There is a significant increase in the ore reserves at Mount Gibson by 65.5% Fe (21.0 Mt) during its reporting period located at the Koolan islands. The reason for the increase in ore reserves was the outcome of the successful evaluation and completion of the financial and technical possibility to access high grade mineral resource at eastern end of main pit. The company has made a disclosure stating that it has not made any changes in regards to its methods used in sampling, sub sampling, drill and data spacing, estimation, mining and metallurgy, cut-off grade.

If we see the 6 months and 1-year performance report the results are positive with returns of 12.35% and 19.74% respectively. The performance returns of 5 years and 10 years were -37.24% and -26.58%. If we see the entire journey of Mount Gibson, a negative performance of -71.34% is seen. The company has made a net profit of A$ 99.129 million. The company’s asset to liability ratio shows its ability to meet its long-term obligations. Cash flow from the operating activities has been A$99.227 million. Cash used in the investing activities was A$ 79.736 million. The net cash used in investing activities was around A$ 21.983 million. As a result of which the cash and cash equivalent at the end of year with the company was A$ 46.547 million.

The share price of Mount Gibson was A$ 0.450 (down 1%) with market capitalization of A$ 500.3 million and PE ratio to be 5.01x, as at October 11, 2018. If we observe the price movement of the share we see that the moving average convergence and divergence line (MACD) is below the signal line.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK