This iron ore producer reported over 800% annual jump in EBITDA in FY23

4 min read | September 13, 2023 09:50 PM AEST | By Team Kalkine Media

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This iron ore producer reported over 800% annual jump in EBITDA in FY23 — Image source: © Gavinp101 | Megapixl.com

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Highlights

Mount Gibson produces and exports iron ore products.

In FY23, the company registered 217% revenue growth over the previous year and 821% EBITDA growth.

The company expects iron ore sales of 3.8 million wet metric tonnes (wmt) to 4.2 million wmt from Koolan Island in FY24.

Mount Gibson Iron Limited (ASX:MGX) is a West Australian producer of direct shipping iron ore products with assets in Mid West and Kimberley regions of Western Australia.

In the financial year 2023 (FY23), the company reported more than 217.2% YoY growth in revenue to AUD 452.61 million and 821.7% YoY rise in EBITDA to AUD 224.10 million. The period saw a gross profit of AUD 114.2 million compared to the gross loss of AUD 72.8 million in the previous corresponding period. It was driven by increased sales from Koolan Island during the second half of the reported year and significant operational improvement.

Top 10 shareholders of MGX

The top 10 shareholders of MGX together hold nearly 85.40% stake in the firm. APAC Resources Limited has the highest stake in the company, with a shareholding of around 37.28%.

Outlook

In FY24, the company intends to focus on Koolan Island development to boost profitability and cash flow. Also, the company seeks new potential resources investment opportunities.

MGX expects to register iron ore sales of 3.8 million wet metric tonnes (wmt) to 4.2 million wmt from Koolan Island in FY24.

Growth opportunities

The company has witnessed significant operational progress at Koolan Island after the completion of major bulk waste stripping and execution of upper footwall ground support programs.

Sectoral risks

The iron ore prices were low in FY23 mainly because of subdued manufacturing and construction activities in the Chinese economy. The economic uncertainty across the globe might further impact iron ore prices.

Share performance of MGX

MGX shares closed 1.12% down at AUD 0.44 apiece on 13 September 2023. With this, MGX's share price dropped by 4.35% in the past 12 months and has gained 1.15% on a quarter-to-date basis.

The 52-week high of MGX is AUD 0.69 apiece, recorded on 27 January 2023, and the 52-week low is AUD 0.365 apiece, recorded on 26 October 2022. Noteworthy here is that today’s closing price is 36.23% lower than its 52-week high and 20.55% higher than its 52-week low.

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 13 September 2023. The reference data in this report has been partly sourced from EODHD/Others.

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