Ann: Koolan Island Update, page-89

Tell me ubs where not short on mgx a week ago, please. Price target 46c lol!

DJ Mount Gibson Should Close Koolan Island Forever: UBS -- Market Talk MGX.AX MTGRY.PK 12:01 GMT [Dow Jones} Mount Gibson Iron (MGX.AU) would be well-advised to close its Koolan Island operation after a series of landslips that left the main pit flooded with sea water, says UBS. "Given the visual images of the Main Pit at Koolan Island which show it completely full of water, we believe remediation could be in the order of A$100 million," says analyst Glyn Lawcock. UBS rates Mount Gibson at neutral, with a A$0.46/share price target. "With Koolan Island cash flow negative prior to the sea wall failure due to the high strip ratio required to complete a pit wall pushback to extend the mine life to 2021, the best course of action may be closure in our view." On Friday, Mount Gibson said it would mothball Koolan Island, resulting in the majority of workers at the site being laid off, and a hefty impairment charge to be included in its half-year accounts in February. Mount Gibson said it would decide on the mine's future by June next year. MGX last traded at A$0.25, down 40%. () (END) Dow Jones Newswires