MGX 2.37% 82.5¢ mount gibson iron limited

price volatility to be expected

  1. 2,257 Posts.
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    Of course we shouldn't be surprised with today's volatility. Off to the takeovers panel. Bit of uncertainty. Will Shougang be forced to sell back its 19% stake back to the Russians at $2.62? Will Shougang formalise a takeover offer? No-one really knows. But what I do you is that CVRD has negotiated a 65% in iron ore prices with Nippon Steel and Posco. I hear rumors RIO and BHP will be pushing for a better price increase due to Australia's freight advantage over Brazil. Not sure if the aussies will succeed but we do know iron orer contract prices will be at least 65% higher - better than analyst expectations. While a substantial rise of 50% has been factored into the MGX share price, the extra 15% should mean a SP in the range of $3.30-$3.60 with or without a takeover. A takeover offer by Shougang would have to be closer to $4 unless there's funnies happening - Shougang/APAC sell down the stock today which could mean a better takeover price down the track. All will be revealed in the fullness of time.
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Mkt cap ! $955.0M
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84.5¢ 84.5¢ 81.5¢ $1.559M 1.891M

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No. Vol. Price($)
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83.0¢ 11550 1
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Last trade - 16.10pm 06/12/2019 (20 minute delay) ?
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