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.
Sector: Materials.
Target price is $0.60.Current Price is $0.45. Difference: $0.15 – (brackets indicate current price is over target). If MGX meets the Citi target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
