2min read
PREVIOUS ARTICLE Reporting season analysis: For... NEXT ARTICLE Reporting season analysis: Boa...

REPORTING SEASON: Mount Gibson Iron (MGX)

Brought to you by CommSec

 

Figure 1: Mount Gibson Iron 12 month chart

 

Mining and exploration company Mount Gibson Iron (MGX) has reported a 2.9% fall in FY net profit to $157.3M.

Underlying net profit excluding the Mineral Resources Rent Tax credit came in at $92.9M, below expectations and well down on last year’s underlying profit of $198M. EBITDA was down 6.4% but there was a healthy 32% increase in revenue to $852.9M.

MGX said its second half was boosted by strong prices and a weaker Aussie dollar.

Mount Gibson’s cash flow looks strong and MGX currently has a cash position of $376M which is almost half its market capitalisation.

MGX also says it has identified permanent ongoing savings of at least $50M per year and expects growth in FY14 sales with guidance of 9 to 9.5 million tonnes of iron ore.

Shareholders will receive a fully franked final dividend of 2 cents per share, unchanged from FY12’s payment.

It brings total FY13 dividend payments to 4 cents per share.

MGX shares rose following the result in early trade on Friday but are down around 14% so far this calendar year.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliette Saly, Market Analyst,