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Mount Gibson Iron Limited
(Sydney:MGX)
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Rating:56Neutral
Price Target:
AU$0.38
▲(1.62% Upside)
Action:Reiterated
Date:08/24/26
The score is driven primarily by mixed fundamentals: an exceptionally strong balance sheet and minimal leverage provide downside protection, but this is offset by sharp revenue contraction, ongoing losses, and a significant 2026 cash flow reversal. Technical indicators add modest support (improving trend vs. short/mid-term averages and positive momentum), while valuation remains a drag due to loss-making earnings and no stated dividend yield.
Positive Factors
Strong Balance Sheet
Minimal leverage and substantial equity provide financial resilience during weak iron ore conditions, reducing refinancing risk and preserving capacity to fund operations, exploration or mine-life extensions through a prolonged downturn.
Negative Factors
Sharp Revenue Contraction
The steep and repeated revenue decline signals material exposure to weak iron ore pricing, shipment volumes or operating conditions. Continued contraction would reduce operating scale and make fixed mining, processing and logistics costs harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Minimal leverage and substantial equity provide financial resilience during weak iron ore conditions, reducing refinancing risk and preserving capacity to fund operations, exploration or mine-life extensions through a prolonged downturn.
Read all positive factors
Mount Gibson Iron Limited (MGX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$436.76M
Dividend YieldN/A
Average Volume (3M)819.69K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-42.65%
EPS Growth62.24%
CountryAU
Employees172
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.03
Shares Outstanding1,180,428,700
10 Day Avg. Volume788,205
30 Day Avg. Volume819,690
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.96
Price to Sales (P/S)2.05
P/FCF Ratio-13.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mount Gibson Iron Limited Business Overview & Revenue Model
Company Description
MGX Resources Limited focuses on the exploration, extraction, and advancement of hematite iron ore reserves. The company's primary operational base is the Koolan Island segment, where it undertakes the full process of mining, crushing, and direct ...
How the Company Makes Money
MGX primarily makes money by producing and selling iron ore. Revenue is generated from iron ore shipments sold under offtake/sales contracts, with pricing typically linked to seaborne iron ore benchmark indices and adjusted for product grade (e.g....
Mount Gibson Iron Limited Earnings Call Summary
Earnings Call Date:Aug 20, 2024
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Neutral
Mount Gibson Iron had a strong financial performance for the full year with increased sales and a robust safety record. However, the June quarter was impacted by adverse pricing adjustments and volatile iron ore prices, leading to higher cash operating costs and reduced cash flow. The company is strategically investing in junior resources while preparing for temporary shipping reductions. Despite challenges, the company remains in a strong position for future cash flow generation.Positive Updates
Increased Iron Ore Sales
Iron ore sales from Koolan Island increased by over 20% on the prior quarter to 0.9 million wet metric tonnes, with full year sales reaching 4.1 million tonnes.
Negative Updates
Adverse Provisional Pricing Adjustments
June quarter cash flow was impacted by adverse provisional pricing adjustments totaling $29 million, reducing the quarter's net cash flow to $1 million.
Read all updates
Q4-2024 Updates
Positive
Negative
Increased Iron Ore Sales
Iron ore sales from Koolan Island increased by over 20% on the prior quarter to 0.9 million wet metric tonnes, with full year sales reaching 4.1 million tonnes.
Read all positive updates
Company Guidance
In the earnings call for Mount Gibson Iron's Q4 2024, CEO Peter Kerr highlighted the company's strong production and financial performance for the fiscal year, despite some challenges in the June quarter. Iron ore sales from Koolan Island increased by over 20% from the previous quarter, reaching 0.9 million wet metric tonnes with a 65.2% Fe grade, contributing to a full-year total of 4.1 million tonnes. However, cash flow for the June quarter was impacted by adverse provisional pricing adjustments, reducing net cash flow to $1 million from an operating cash flow of $30 million before adjustments. Full-year sales revenue was $670 million FOB, with an operating cash flow of $290 million. Kerr also noted that the company's cash and investment reserves grew significantly, reaching $436 million by the end of the June quarter. Additionally, safety performance improved, with a lost time injury frequency rate of 0 incidents per 1 million man-hours and a total recordable injury frequency rate decreasing to 4.4 incidents. Looking ahead, the company aims to ship 2.7 to 3 million tonnes in fiscal 2025, with a strategic focus on maximizing cash flow from Koolan Island and exploring new investment opportunities.Mount Gibson Iron Limited Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
86
Very Positive
Cash Flow
41
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 198.97M | 330.52M | 667.82M | 452.69M | 186.11M |
| Gross Profit | -3.78M | 227.00K | 210.62M | 111.85M | -30.52M |
| EBITDA | 2.21M | 4.50M | 90.77M | 144.94M | -171.88M |
| Net Income | -30.17M | -82.19M | 6.43M | 5.18M | -174.12M |
Balance Sheet | |||||
| Total Assets | 491.70M | 582.67M | 664.30M | 724.94M | 760.14M |
| Cash, Cash Equivalents and Short-Term Investments | 393.09M | 461.82M | 463.03M | 162.41M | 125.57M |
| Total Debt | 575.00K | 5.29M | 11.85M | 23.05M | 11.88M |
| Total Liabilities | 68.95M | 129.49M | 118.13M | 185.71M | 227.04M |
| Stockholders Equity | 422.76M | 453.18M | 546.17M | 539.23M | 533.10M |
Cash Flow | |||||
| Free Cash Flow | -30.90M | 34.19M | 267.32M | 56.59M | -196.08M |
| Operating Cash Flow | -713.00K | 98.45M | 328.21M | 130.62M | 21.86M |
| Investing Cash Flow | 9.17M | -59.84M | -335.03M | -131.00M | -10.12M |
| Financing Cash Flow | -8.41M | -25.66M | -12.01M | -22.47M | -30.94M |
Mount Gibson Iron Limited Technical Analysis
Positive
0.37
Price Trends
0.34
Positive
0.36
Positive
0.39
Negative
Market Momentum
<0.01
Negative
65.39
Neutral
75.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MGX, the sentiment is Positive. The current price of 0.37 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.39 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MGX.
Mount Gibson Iron Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | AU$436.76M | -14.47 | -7.06% | ― | -42.65% | 62.24% | |
56 Neutral | AU$8.40M | -0.08 | -111.00% | ― | ― | -1844.12% | |
52 Neutral | AU$2.01B | 17.85 | 6.80% | 3.35% | 9.88% | 22.36% | |
49 Neutral | AU$226.15M | -1.17 | -225.71% | ― | -16.03% | -1005.11% | |
47 Neutral | AU$32.03M | -11.67 | -123.74% | ― | ― | 82.81% | |
42 Neutral | AU$19.06M | -2.55 | -77.53% | ― | ― | -200.55% |
* Basic Materials Sector Average
AU:MGX
Mount Gibson Iron Limited
0.37
-0.02
-3.90%
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Mount Gibson Iron Limited Corporate Events
MGX pivots from iron ore to gold as Koolan Island wind-down funds Central Tanami push
Aug 20, 2026
MGX Resources reported a transitional year as it repositioned from iron ore to gold, leveraging the acquisition of a 50% stake in the Central Tanami Project Joint Venture and winding down its Koolan Island iron ore operation. The company maintains...
MGX Resources Posts Deeper Loss as Revenue Slumps but Expands Tanami Stake
Aug 20, 2026
MGX Resources Limited reported a sharp deterioration in financial performance for the year ended 30 June 2026, with revenue from ordinary activities falling 37% to A$220.8 million and the net loss after tax attributable to shareholders widening by...
MGX Resources Exits Substantial Holder Position in Maronan Metals
May 27, 2026
MGX Resources and its subsidiary Gibson Minerals have notified Maronan Metals that they have ceased to be substantial holders in the company, effective 27 May 2026. The change, lodged under Australia’s Corporations Act disclosure rules, indi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.