MGX 3.57% 94.5¢ mount gibson iron limited

portman mining lazy b/sheet and cashed up

  1. 395 Posts.
    This train of thought comes from posters on Ozestock, they have pointed out that PMM had a look at MGX last year and walked away. However, MGX is a lot further down the track now with regard to its project and fits in nicely with PMM's operations. Comments anyone? Probably wishful thinking on my part, although my ideal scenario would be for MGX to make a real go of it and get rerated before it was picked off by a larger company.

    from an Open Briefing.Portman.MD Eldridge on Expansion Outlook
    23 April 2003

    Can you outline the current iron ore market, what your expectations are for the price negotiations and the extent to which Chinese discounting is continuing?


    The market is currently extremely tight, in fact, it's at a level not seen for many years. I don't want to speculate on a number, but we share the expectation of a solid price increase. In China, there's been price cutting in the past couple of years which has been at odds with the growth in demand. We don't expect this to continue this year, given demand for ore already exceeds supply and is increasing.

    Portman has no debt and after the capital expenditure at Koolyanobbing and the Northern Tenements you'll still have a lazy balance sheet. Could you tell us what your intentions are with respect to the balance sheet?


    The returns to equity holders could be significantly enhanced by restructuring our balance sheet. Essentially we have two available options. The first is to return that capital in a tax effective manner to shareholders and gear our balance sheet to an appropriate level. A leveraged buy back being an option. The other alternative is to use that cash in a way that enhances our returns and specifically
    what I'm referring to is an acquisition. However, any acquisition would need to make sense and would be evaluated on stringent investment criteria. If it doesn't meet certain hurdles we won't do it.

watchlist Created with Sketch. Add MGX (ASX) to my watchlist
(20min delay)
Mkt cap ! $1.094B
Open High Low Value Volume
98.0¢ 98.5¢ 93.5¢ $3.134M 3.302M

Buyers (Bids)

No. Vol. Price($)
3 8443 94.5¢

Sellers (Offers)

Price($) Vol. No.
96.0¢ 21276 1
View Market Depth
Last trade - 16.10pm 27/01/2020 (20 minute delay) ?
-0.035 ( 3.34 %)
Open High Low Volume
97.5¢ 98.5¢ 93.0¢ 981224
Last updated 15.59pm 27/01/2020 (live) ?
MGX (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.