Ann: Operating Update - Staged Suspension of Shine Iron Ore Mine, page-24

MGX - MOUNT GIBSON IRON LIMITED

Citi rates MGX as Buy (1) - Mount Gibson has suspended the Shine project because of the adverse trajectory of iron ore prices. The project will be placed on care & maintenance pending an improvement in conditions.
Shine reserves total 2.8mt and grade 59.4% iron. In adjusting its model, Citi reduces the target to $0.60 from $0.65 and maintains a Buy/High Risk rating.
Target price is $0.60 Current Price is $0.45 Difference: $0.15 If MGX meets the Citi target it will return approximately 33% (excluding dividends, fees and charges). The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 2.00 cents and EPS of 6.40 cents . At the last closing share price the estimated dividend yield is 4.44%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.03.
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 5.00 cents and EPS of 20.60 cents . At the last closing share price the estimated dividend yield is 11.11%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.18.