MGT TAKEOVER?? TARGET 4B Tonnes iron ore, page-478

Missed the biggest one - it's magnetite. It's low grade ore. The Razorback's ore grade is between 16% - 28%. Contrast this with the iron ore majors e.g. FMG, Hancock, Vale, BHP, whose iron ore is in the 50%-60%+ range. MGT will need to mine 2 or more tonnes of ore, to get one tonne of high grade ore, making them a very high cost producer of iron ore. Almost certainly uneconomical at long term averages, ie. if you don't use the current iron ore price which is boosted by supply disruptions from Brazil.

This stock will probably go higher on hype, but the fundamentals won't justify it. It'll be a great trading stock though, because they can claim large in-situ values associated with 4B tonnes of iron ore and make everyone excited. Heck, I might even take a few to speculate on the price movements.