Yesterday's movements destroyed any sense of a near term breakout for MGX. Up until yesterday, it looked encouraging that MGX was about to start a new move up after nearly 7 months of a grinding downward trend.
Stepping back to a 3yr view and yesterday also breached an important support line that has held since late 2021 and has previously stood the test on three occasions through 2022 to 2024. This suggests that the Nov 2021 low of 35c is now very much in play - surprising given that the cash + investments backing is sitting at 37cps.
I suspect that management would have been surprised by the market response to yesterday's announcement. It will be interesting to see if Peter Kerr has reflected overnight and seeks to take a different / more strategic messaging approach when he presents to the Noosa mining conference later today, as clearly the market cannot see where there is any incremental value in MGX beyond what they currently hold in cash + investments.
(20min delay)