I have both MGX and FEX shares. Both currently have relatively...

I have both MGX and FEX shares. Both currently have relatively short mine lives.
FEX is a high cost producer with a break-even iron ore price of ~US$100. Their hedge, as well timed as it was, is only for one year and only a part of their production, and highlights the understanding of their management to the material risk lower iron ore prices represents. FEX is currently producing at about their maximum rate and management has been clear in relation to articulating a dividend policy and strategy so therefore shareholders are well informed.

MGX has for the last few years clearly articulated their mining strategy at Koolan. It is therefore of no surprise to long term holders that the Koolan mine is not currently very profitable, if at all. The messaging of being slightly behind schedule in terms of bulk waste movement has generally been well telegraphed too, but there seems to have been some recent slippage that has pushed the delay back further, from some 3 months to about 6 months now. Some unanticipated additional costs to stabilise the wall is unfortunate, but the need is unquestioned. That's just mining for you. What we do know is that come calendar 2022, MGX will be back into the higher grade ore with a lower cost of production relative to FEX, around US$60 and decreasing thereafter. This will provide much greater protection relative to FEX, should iron ore prices fall. Where MGX suffers is the ever present issues of mining on an island, but (IMO) mostly the inability of management to articulate and action a clear strategy in relation to the hoardes of cash MGX possesses. They talk about investing it, but they've been through a cycle and done next to nothing with it. They are not distributing that back to shareholders in a meaningful way. In the meantime, they continue to offer a dividend reinvestment plan (DRP) at a 5% discount and this is allowing major foreign shareholders to increase their ownership and influence. There should be no need for a DRP currently, and definitely not at such a discount. The interests of these parties may not align with those of Australian retail shareholders, and that is becoming a concern for me. (GRR is also a current example of this foreign influence).

Although only a sideshow, I also think MGX has been too slow on the decision to develop Shine and overcome the problems they readily foresaw but which they do not seem to have addressed, like the transportation cost and progressing the option to do this partly by rail. That has been a known issue that they do not seem to have done anything about, other than talk about the possible rail solution.

At the current price, I see MGX as a definite buy. But, if I could put FEX management into MGX, I'd be a much happier person and trust that interests would be more aligned to all shareholders.