2022 the year of MGU, page-98

MGU is being valued so low currently because of what is not known.
Eg what is the capex, opex, life of mine, who are the offtakers, where is financing coming from etc etc
Management really have not addressed these in any reassuring way so far, so accordingly it is being valued very low.
Some conservative estimates any of us can make put the NPV of the project anywhere from $1B to more bullish at $4B plus.
With a binding offtake and BFS in place (which you would hope are the least that could be achieved this year) MGU should trade at least 10-20% of the estimated NPV in my view. Let’s say they work a base level BFS to an NPV of $1.5B, that should mean MGU trades at a market cap of ~$150M at least. If they secure financing, a market cap of $400M going into construction should easily be achieved.
These are big ifs of course, but what they are aiming for is not rocket science..nearly all the iron ore mined eventually gets turned into pig iron or a similar intermediary product before becoming steel. The only real unknown is can they scale up commercial production of their pig iron using a rotary kiln with Biochar.