why low price, page-27

Japan construction companies up 20% today....according to CNBC Business Channel.....due to increased construction demand)

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The biggest iron ore mines in the world... eg BHP Pilbara Mining Area C and Vales giant Carajas Brazil iron ore mines, have high grade iron ore strike of over 2 km.

Here we are....with MGX claiming unexplored hematite ridges over at least 3.5km in the western part of Koolan Island.

Iinteresting link from 2008....a few weeks FINALLY before they drill this most exciting prospect....(and as the share price sits at near 12 month lows. )

http://www.mtgibsoniron.com.au/uploads/13.11.08%20-%20Koolan%20Island%20Western%20Iron%20Ore%20Targets.pdf

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Koolan Island is host to one of the highest quality iron ore deposits in the world and the western region of the Island is largely unexplored. The western area has, to date, never been drilled. Strongly developed hematite bearing ridges are known to occur through the area, including some spectacular coastal outcrops. The hematite ridges occur over a length of at least 3.5 kilometers and appear to represent the fault offset extensions and structural extensions of both Main and Mullet-Acacia ore-bodies.

Mount Gibson?s Managing Director, Luke Tonkin said ?The exploration potential of the western end of Koolan Island appears extensive. The medium term operational outlook for Mount Gibson has the potential to improve significantly, particularly if exploration of the western iron ore targets on Koolan Island is successful in defining quality, near surface hematite iron ore which could be blended with existing satellite ore sources.?
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Iron ore prices may increase another 20% from April 9see story)...... at planned production of 9 to 10 mtpa from Dec 2011.....MGX revenues would increase $250m PA.

These revenues kick straight to the bottom line as profit (less tax and royalties).....$150m NPAT could see the company earning $600m PA from the end of the year.

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Vale: iron ore prices to increase 20% in Q2

Last Update: 07/03/2011 15:38:52

Brazilian iron ore giant Vale expects its average iron ore price for the second quarter to increase by about 20% from the current quarter, considering variations such as product quality grade and geographic issues, Steel Business Briefing learns from the company?s executive director of marketing, sales and strategy Jos? Martins.
?We saw prices at records levels in 2010; the trend is to continue registering records in 2011,? says Martins, adding the market might remain tight for at least three to four years.

Queried by SBB regarding the quarterly pricing system, the executive says that even though some producers have been already moving toward a shorter mechanism, such as monthly, ?Vale does not intend to move from the quarterly deal, which is still sustainable, to another system close to the spot market,? he says.

Moreover, Martins believes the current quarterly average pricing mechanism can compensate for the high peaks seen on a spot basis, as well as help the company maintain long-term supply contracts with its customers. ?The pricing contracts may be comfortable for both sides,? he says.
SBB observes that the world?s top ore producer believes the current high price levels will remain throughout the year, but a slight drop could be seen after the second half, when new global output capacities will come on the market.