maquarie report 20.01.09 mgx, page-14

I think the consensus is for a 40% decrease and if so that would make MGX's price with the 10% contractual reduction equal more or less to 2007 prices or 2008 profit of $113M. Noting that the AUD averaged 80c during this period and the outlook is for it to average low 60's for 2009 then we have a 25% greater dollar return due to the currency depreciation. Now throw in the USD hedge and a higher production than 2008 fy and I think that they may more than offset one another. The best move MGX could make is to bite the bullet and buy the 2009 hedge back at current prices, that is if they fail to get the banks to push them out to later years as they intended to do once offtakes and capital raisings had been completed which I may say we have had no update on. If MGX release good news on the currency hedge I think the share price will move very quickly to 60c level.