results out - look at last quarter, page-26

Mt Gibson the best buy in resources sector ..

A Sydney based broker has a “buy” on Mt Gibson after a full year 2005 profit result of $23.6 million, in line with the broker’s expectations.

The new news was that first production from the Mt Gibson mine will be brought forward to first quarter 2007 instead of starting at the end of Tallering Peak’s mine life. This means total production will be ramping up to 4.5 mtpa in 18 months time in stead of just 3 mtpa. The broker increased its NPV for Mt Gibson’s hematite operations from 80c to 92 c.

The broker says “We rank MGX as our best buy in the resources sector owing to the quality of operations and management, significant earnings growth and the free option on the Magnetite Project which we value at 80 percent, equating to a total valuation of $1.73”. MGX up 1.5c to 66.5c


I assume the broker was Shaws.