Ann: Acquisition of Mid-West Iron Ore and Port Assets, page-50

I think MGX have done really well here. Sold assets that they have deemed worthless for $25m plus offloaded $9m off their balance sheet out of rehab provisions. $34m gain on sale coming up for MGX which is a great result.

I have a question though to the cheer leaders on here. I'd think most people would expect a payback on acquisitions of assets that are deemed worthless by their previous owner to have a relatively quick payback (circa 2-3 years). Does anyone actually expect to receive payback of $34m within 2-3 years? It will obviously depend on blending of Shine, but if including Shine, you need to include the capex to bring Shine back into production so somewhere around $50m in total in that short period of time? They certainly won't make that back from being a bulk hauler in that time, which means it falls on Shine.