Key issue with MGX is understanding what it is you are buying (a...

Key issue with MGX is understanding what it is you are buying (a mine pumping out cash and potential future dividends whilst that mine operates or something else) - that has been quite clouded until now.

The quarterly loss is (as identified by Miningnut) timing related insofar that the $29m provisional pricing adjustments likely related to Q3. I agree that Q1/FY25 will be a likely loss as they move the focus of mining operations, but again that is more timing than a true operational issue (provided they can get back on top of mining costs which did blow out in Q4). In reality, what we are wanting (as a first order of business) is for management to maximise the free cash flows from KI whilst it is depleted to complete the current mine plan over the next 3 or so years. I am unperturbed by the depreciation / amortisation accounting movements.

Then it was a matter of understanding as to what happens with that cash - a question that we have a good more understanding as to MGX thinking after this announcement. If they deploy that cash wisely for majority positions into a couple of strong new projects with "cash strapped" juniors, then that could be a great outcome for MGX shareholders. Hence, now knowing their thinking, we need to get more detail on this story, but that does not sound as if it is very far away, given that they are out there looking at specific projects.

Only then can the market really assess the value in MGX. For the moment, it is tracking the value of hard assets (cash + investments) which is not a bad thing in the intervening period until we get a better handle on how to value what comes next.