Business Description:
Mount Gibson Iron Limited (MGX) is involved in exploration, development and mining of iron ore in Western Australia. The company has three major projects; Tallering Peak, Koolan Island and Extension Hill. As at June 2011, the total resources and reserves were 103.3Mt and 52Mt respectively.

Strategy Analysis:
MGX aims to provide sustainable long term returns to shareholders by building a profitable mid-cap mining company. The company seeks to maintain and grow long term profitability through discovery, development, participation and/or acquisition of mineral resources. MGX's strategy is to produce 10Mtpa of hematite iron ore from its three Western Australian mines by 2011. Mount Gibson Iron reported NPAT up 81% to $239.5m for the year ended 30 June 2011. Revenues from ordinary activities were $672.1m, up 25% from last year. Diluted EPS was 22.13 cents compared to 12.28 cents last year. Net operating cash flow was $222.41m compared to $169.08m last year. The final dividend declared was 4 cents, taking the full year dividend to 4 cents compared with nil last year. During the course of the financial year mine properties increased by $200.75m, primarily due to deferred waste capitalised as a result of waste mined. In addition, $85.0m in debt drawn was repaid in full.