For anyone out of the loop, Iron Ore crashed below 100 today.
Shine is now probably the biggest waste of money MGX has done.
We're scheduled to spend another $20M on a project which is now officially losing $10 a tonne, or $10 million a year.
Are we tied into any contracts with vendors or clients, or do we have optionality to can Shine and take the impairment on the balance sheet to avoid paying 30 million dollars to dig ore for Chinese steel mills??
Big picture is Koolan, surely we should pull the plug on Shine seeing it's now looking very likely shine will deliver at best about -20 million in returns this year. Best hope for an iron ore rebound is Feb post Winter Olympics.
MGX Price at posting:
40.5¢ Sentiment: Sell Disclosure: Held
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