MOUNT GIBSON IRON LIMITED - REQUEST FOR TRADING HALT
Mount Gibson Iron Limited (“Mount Gibson”) (ASX: MGX) requests that its securities be placed in
a trading halt with immediate effect.
The trading halt is requested pending the release of an ASX announcement by Mount Gibson in
connection with the Western Australian Government’s announcement relating to imminent travel
restrictions to be imposed across the Kimberley region of Western Australia to protect the well-being
of residents in the Kimberley and remote Aboriginal communities from the impact of the COVID-19
Mount Gibson is in discussions with relevant authorities to determine the extent to which the new
restrictions will impact the travel of Mount Gibson’s existing workforce to and from Koolan Island
and, if so, the impact on operations.
The wellbeing of employees, contractors and communities remains Mount Gibson’s primary
consideration and the Company understands and respects the urgency of Government measures
to protect vulnerable communities.
Mount Gibson requests that the trading halt remains in place until the earlier of Mount Gibson
making the abovementioned ASX announcement or market open on Monday, 30 March 2020.
Mount Gibson confirms it is not aware of any reason why the trading halt should not be granted.
courtesy of Bell Direct
( DYOR )
i do not hold this share
if this is widespread across the Kimberley's this will be a major glitch in iron ore ( and some other resources ) production
Sign of the times. I've been wondering how this will impact the mining community. Underground mines at some point will have to severely reduce personnel on shifts - or suspend operations. Offshore oil platforms....that will be interesting too. Yes, the Australian model of minerals and foods is in a bit of a bind. Foods might survive with reduced exports and new rules - but minerals - it's going to be tough, and the unions will make it tougher.
Any idea of a stock that will pay a dividend next few years? Banks are looking a bargain - but not without reason. Wonder how many business loans and home loans will turn bad? 20, 30, 40% - I think those numbers are a little optimistic.
SOME of the LICs practice dividend leveling ( using held back peaks in past dividends and buy-backs ) but TAKE CARE some of those dug deep to pay out all the franking credits before the last election
BHP can probably soldier on with reduced divs if this lasts longer than 6 months , if the banks think they can get away with it they will slash divs to the bone (call it capital preservation )
WES ( imo ) will be looking hard for acquisitions , so might cut/suspend divs as well
MAYBE some of the food related businesses ( and associated REITs ) can still generate reasonable profits
i am HOPING API , SIG , ONT and PSQ can make enough profits to pay divs ( but they might decide to save up for some acquisitions instead of paying divs )
oil platforms at sub $US 25 oil must be close to ( or under ) break even costs
telcos and power companies MIGHT do OK ( but what if the coal miners shut down ?? ( in Australia )
most of the NZ power companies have some hydro and geo-thermal assets
not even all government services will be safe ( imo)
going to be interesting times in the next 6 months
Mount Gibson MGX share price closed above 50dma yesterday (bullish sign) with quarterly report due on 21/04 & perhaps a nice divvy to come (on the back of high iron ore prices).
Came across this analysis below:
Trading at 85.8% below our estimate of its fair value
Revenue is forecast to grow 22.7% per year
Meanwhile, unfortunately more bad news for Brazil (in addition to covid rampant there as well)
Iron ore futures taking off is great news for the likes of MGX & FEX etc. here in Oz
Iron ore price surges to 10-year high after Vale, Rio miss on output
More bigger profits $$ for cash cows like MGX & FEX with their quarterlies due soon :)
Reflecting inventory build and reduced shipments while the overburden stripping program is
undertaken at Koolan Island, Group unit cash costs were $135 per wmt sold Free on Board (FOB)
for the quarter before Koolan overburden stripping and capital projects and Shine development costs.
that seems a little high , i am hoping they are quoting in Australian dollars ( rather than $US )
am reading it just now , for whatever reason my platform didn't release this until this morning ( thanks for the heads up )
at a quick glance seems to have struggled through plenty of adversity and still made some profit , which not slowing down the development projects
but crikey you would have to be keeping an eye on iron ore prices , to me we are in an out-of-cycle anomaly , caused by the Brazil dam failures and slow remediation of those failures , by the time Brazil is back in full production , will that also be in peak demand , causing prices to basically plateau over the next say , 5 years
i would NORMALLY be cautious given current China/Australia relations but from memory MGX ( as does GRR ) has a Chinese majority share-holder so is lees likely to get entangled in regional politics .
looks to be still developing other projects to develop in parallel to Koolan Island ( or replace it over time )
around 75c for me for the second bite
i grabbed a few @ 83c back on March 10th
don't want to get too heavy here until i can see when Vale ( and the BHP JV ) go back into full production
( the BHP/Vale JV was 3% of the global iron production when that dam failed , and in the other Vale projects crippled later and say at at 4% is off-line )
BHP is doing it's bit , but what about Vale ??
MGX now @ 0.89c +2.3% on yesterday..
China steel demand leaves iron ore miners Vale, Rio Tinto struggling to keep up
Not forgetting that Vale has been impacted by covid in Brazil as well & ongoing it seems for a while yet...
that is a RIO and Vale issue , for example GRR have a huge undeveloped resource that they are still looking for a partner ( and have $200mill. in the bank for some seed money ) , i would guess some other smaller iron producers could also step up production if the profit margins were right
i will be watching Glencore , several years ago Glencore put the tape measure over RIO to see if it was a buy , RIO has 'simplified ' since , and i would expect regulatory approvals are the only thing stopping Vale from being a target .
MGX has some 'brownfield projects as well , true they might be years away from production , but probably not decades away
By Rhiannon Hoyle
This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 22, 2021).
SYDNEY -- A run-up in the price of iron ore to a decade high is blunting China's pressure tactics in a major trade dispute.
China imposed a series of import restrictions and tariffs on Australian products including barley and beef last year, after being angered by Australian Prime Minister Scott Morrison's call for an international investigation into the first outbreak of Covid-19 in China. But its reliance on iron ore from Australia meant the steelmaking ingredient wasn't targeted by Beijing.
Now, China's demand for iron ore to feed its steel mills and underpin its economic recovery has driven the industry's benchmark price to its highest level since February 2011. That is providing a revenue boost to Australia, which accounts for more than 50% of global iron-ore exports, as it navigates tensions with its largest trade partner.
The price of iron ore -- one of the world's most traded commodities -- rose to $187.75 a metric ton on April 20, according to S&P Global Platts. It has risen 17% over the past month, extending a rally that began when prices were below $100 a ton less than a year ago.
"It's certainly good news for miners and the Australian economy," said AMP Capital Chief Economist Shane Oliver. He predicted more large trade surpluses for Australia, while iron-ore miners will pay more in tax that will improve Australia's budget deficit.
The surge in iron-ore prices has been underpinned by stronger steel prices in China after Beijing last year ramped up stimulus spending with a focus on infrastructure. Steel prices, also around decade highs, have been encouraging mills to churn out more of the material to meet demand from industries including construction and automobiles.
"China's industrial economy continues with strong momentum," Rio Tinto PLC said Tuesday when detailing its performance in the first three months of this year.
China is estimated to have produced 83 million tons of crude steel in February, up 11% year over year, according to latest data from the World Steel Association. March data are due to be published on Thursday.
"I suspect steel producers are making hay while the sun shines," said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group Ltd.
In 2011, when prices were last this high, China's rapid economic growth created a shortfall in iron-ore supplies, which encouraged miners from Australia to Brazil to expand their operations. Iron ore peaked at $193 a ton in February of that year.
On Monday, Brazilian miner Vale reported a first-quarter production result that missed analyst expectations, fanning fears of a shortage
BHP Group Ltd. on Wednesday said its annual iron-ore output is likely to be at the upper end of a forecast range -- 245 million to 255 million tons -- aided by record production at its Jimblebar mine in Australia. The world's No. 1 miner by market value reported a 4% increase in iron-ore output for the first nine months of its fiscal year through June, to 188.3 million tons.
Rio Tinto this week said its first-quarter iron-ore shipments from Australia were 7% higher than the same period of 2020, as it ran down stockpiles of the commodity.
China was the destination for 38.1 million tons, or more than 80%, of iron ore shipped in March from northern Australia's Port Hedland, the world's biggest iron-ore export hub, according to the Pilbara Ports Authority. That was up from 30.7 million tons in February, but below the 40.4 million tons shipped in March 2020.
Australia expects strong prices to push its earnings from iron-ore exports to a record above 136 billion Australian dollars, equivalent to $105 billion, in the year through June, the government said in a recent report. That would beat the previous high of A$104 billion in the 12 months through June, 2020.
"Iron ore is Australia's single biggest export and swamps the value of coal and agricultural exports, so its continuing price surge to levels well above most analysts' expectations will see further upgrades to mining-company profit growth for this year, where the consensus expectation is already for a 70% rise in profits this financial year," AMP Capital's Mr. Oliver said.
Many analysts think iron-ore prices could soon buckle. Goldman Sachs predicts the price to retreat to $110 a ton by the fourth quarter of this year, and to below $100 a ton in 2022, reflecting expectations that Brazil will lift exports and create an oversupply of the raw material from the second half of this year.
Record prices also typically lead high-cost, low-grade mines to restart production.
Still, strong Chinese steel demand and wide margins among steelmakers will limit any retreat in prices in the near term, Goldman Sachs said.
"There will be a level where steel producers will start to push back, and it could be close," ANZ's Mr. Hynes said. "But I've been surprised in the past."
Write to Rhiannon Hoyle at firstname.lastname@example.org
(END) Dow Jones Newswires
April 22, 2021 02:32 ET (06:32 GMT)
now i disagree here , China can flex a bit of muscle if it chooses to , last i heard Mongolia had some iron ( probably under-developed ,) Russia has plenty of iron , the issue there might be finding an acceptable other side of the trade ( for Russia to swap for ) Russia should have a fair bit of coal , and uranium as well as oil and gas to sell , to boot
now SOME smaller iron exporters have Chinese major holders so they should be fine , BUT China MIGHT ask BHP to mine it's iron in Brazil or elsewhere rather than Australia , China also has the option of injecting cash into Vale , Indonesia already sells it's iron as ferro-nickel , so China is NOT that badly backed into a corner , now how would FMG go here , i doubt FMG has done much to annoy China , could it become collateral damage , or just focus on exporting to India , Japan and South Korea .
it would be very easy to push China into another policy change
AND there are a few iron deposits in Africa as well , they will probably need some infrastructure built BUT China has some cash to invest, and like to think ahead