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MGX 41.0¢

blackjack

  1. Speculation in the AFR today that PMM may now have little choice but to deliver on the hint that PMM gave at the AGM re making an acquisition and that the most likely acquisition target would be MGX.

    It hasn't exactly set the stock alight but it has sure settled back to an 'accumulate level if you don't mind the broker reports....

    Portman Dec 11 Macquarie Equities: Downgrade to s/t underperform
    Dec 10 JBWere: Downgrade S/T from hold to underperform

    Here is the article. What are your thoughts blackjack? Certainly seems a better entry level to MGX if you were fair dinkum about it as having some prospects?

    Portman $1 dazzler

    George Jones will be hoping for a rapid end to what has been a shocking second half for his

    iron ore miner Portman Mining.

    After peaking at a hype-driven $2.50 in April, Portman has crashed over the past few months following a string of negative announcements, the latest being this week's WA Environmental Protection Authority knock-back that saw the stock bumped as low as 97¢.

    It was the lowest Portman has traded since a one-week hiatus in September last year and even yesterday it was struggling to close above the psychological $1 barrier.

    Portman stock closed at $1 and not surprisingly rumours of vultures circling - given the iron miner had $86.8million in cash at its June 30 interim balance date - are emerging.

    On Monday, the EPA said it would recommend that the WA government reject Portman's proposal to mine the Mt Jackson and Windarling Range regions, as part of its Koolyanobbing expansion plans.

    Although Portman has indicated it will appeal against the EPA recommendation, market reaction was swift and the stock dropped from its $1.10 Friday close.

    Paterson Ord Minnett analyst Rob Brierley is one to have downgraded his target, valuing Portman at 96¢ and expecting the stock to underperform.

    Of most concern to analysts is the life of the flagship Koolyanobbing operations should Portman's EPA appeal, which needs to be lodged within a fortnight, be unsuccessful.

    Only in July the market savaged Portman after the miner downgraded the recoverable resource at Koolyanobbing from 95 million tonnes to 74 million tonnes.

    Portman's new managing director, Barry Eldridge, said upon his appointment six weeks ago that he would focus on an acquisition program to improve the miner's growth potential.

    That focus is likely to be sped up and with cash to spend, another tilt at fledgling WA miner Mount Gibson Iron might be back on the agenda.

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