Wind back to October 9 last year :

The climb back for Mount gibson

It was the day that Mt Gibson Iron announced many of its customers had requested delays for shipments of iron ore. And it lead – or at least was the first real sign – of a broader market crash among mining stocks, with Rio Tinto soon forced to follow suit and admit it was also having problems selling ore.

But a year on – and after the injection of Chinese capital at the depths of the market – business has improved substantially for Mt Gibson.

In a presentation to a Macquarie Equities conference, the West Australian iron ore miner said it had taken some lessons away from last year’s market crash that would prove useful for all smaller iron ore miners. Among the lessons learned are that the quality of customers is more important than the quantity. Mt Gibson had been particularly vulnerable last year  because most of its sales were made to iron ore traders rather than actual steel mills.

Mount gibson has plans to grow organically and through mergers and acquisitions after selling 5.4 million tonnes of iron ore last year, which led to earnings of $43 million.

TODAYS MGX  PRICE: MGX 1.200 -3.23%


Company Name:
Mount Gibson Iron Limited

Stock Code:
MGX

Website:

www.mtgibsoniron.com.au

Market Cap ($M):
1,446

Equiv. Shares (M):
1,075

Some news history on Mount Gibson Iron Ore:

Mount Gibson shareholders approve Chinese rescue plan

Wednesday, 31 Dec 2008

Shareholders in Mount Gibson Iron Ltd have voted in favor of a AUD 162.5 million rescue package that could result in the ailing iron ore miner being more than 40% held by two associated Chinese interests.
The company gained approval at a general meeting in Perth on Tuesday to conduct a rights issue to its largest shareholder, Chinese resources investment house APAC, and a separate placement to Hong Kong Stock Exchange listed Shougang Concord.

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Sydney, Sep 24, 2009 (ABN Newswire) – Mount Gibson Iron Limited (ASX:MGX) has entered into two agreements with Fushan International Energy Group (HKG:0639), Shougang Concord International Enterprises Company Limited (HKG:0697), Shougang Holding (Hong Kong) Limited and various subsidiaries of those companies.
Under the first agreement, Chinese coal producer Fushan has agreed to purchase from Shougang Concord all of its shares in Mount Gibson in return for the issue of shares in Fushan valued at HK$1.188 billion.

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LINKS:
Mount Gibson Official website :http://www.mtgibsoniron.com.au/

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MOUNT GIBSON FOSSICKING AREA

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