asx 100, page-9

Yeah hi amerigo

I'll summarise:

1. Foster think IO prices are likely to settle at higher than the 30-40% increase in benchmark IO that the market has factored in - perhaps as much as 60% (although they believe spot prices will become increasingly important in determining IO prices)
3. MGX is Foster's key pick in the IO sector and call it the best exposure to higher IO prices in FY10 and beyond due to its steady production profile, clear growth path and (actual and forecast) financial performance

Based on a 10x PE on FY11 earnings they value MGX at $2.48, and have a price target of $2.30/share.

The reason I like these guys (I dont subscribe to them but I'm thinking about it) is they have reviewed MGX a couple of times in the past and they've been spot on (if you go to their site www.fostock.com.au and look through their "talking point" menu you will see the above review (issued feb 22nd) and last year's review).

Hope this helps. Cheers, Sharks.