mount gibson , page-19

Good question Tom,

exchange rate has undoubtedly moved considerably more than iron ore prices and prognosed higher still.

also company didnt say whether negotiated sales contracts were fixed price or pegged, so hard to tell if reaping this benefit or not.

in a rational world, i would expect to see mgx chart moving very closely with A$. It is the most sensitive stock i know of because its survival is possibly at stake. mgx is instead higher now than when A$ was 0.55c.

for me its all about risk. am astounded mgx share price is still not reflecting a real chance of project failure. hopefully the company will put these fears to risk with new cost structure or further detail on pricing but in the meantime the sidelines are safer for me.

i remain very interested because not long ago it was my pick for 2003. the irony is i teach forex hedging at uni, and i didnt see this coming!

good luck