I was not convinced with MGT earlier as I thought the chance for it to successfully develop the mine is low due to the high capex. I changed my mind and nibbled my first 2+m shares in MGT after HIO went above 50c as I began to think there may be chance after seeing how investors/traders crawling into HIO. Time could be due for Magnetite mine due to the shift in steel making industry. After comparing the higher and somehow better quality resources that MGT (4.5 bn tons @ Razor and 1.2 bn tons@Master Dam, lower strip ratio, higher DTR, etc) has against that of HIO (3.06 bn tons @ Hawson), I am convinced that we ought to see the gap between MGT and HIO close in due time.
With Tim Dobson now in the scene, I think the chance for MGT to secure key offtake partners and finance has significantly increased and hence we may see it break 5c earlier than expected. Stay tuned Spartans and wait for the right moment to kick arses! GLTA
MGT Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
