as predicted last week.this is actually perhaps the best...

as predicted last week.

this is actually perhaps the best outcome.

-Top of cycle price
-A number of readily actionable projects waiting the cash derived from this selldown. (Including haematite at Extension Hill. plus perhaps others being considered.)
-makes MGX cash heavy at a time majors may be on the prowl
-leaves a number of other resource heavy, cash strapped minors exposed
-raises not insignificant issue of MGX becoming a dividend payer in an extended cycle.

This also increases the likelihood of a rapid run to production for the haematite ops at ext hill now that both MGX and Shougang (plus any other parties they may bring into the fold) will be gunning for a rapid PER approval from wa govt. This will potentially bring forward the port upgrade at Geraldton (wa govt dependant) plus also the actual start date for the haematite proj.
May also bring into play other options wrt joint use/capex spend on infrastructure etc particularly since Haematite resource overlays magnetite.

Co. finally seems prepared to give away/reveal their optimism and the enormous potential of their tenements’ (remember this is just one of 8 beside any that may now become available). Also note the confirmation of 5-6mT production of high grade haematite by end calendar 07.

This first 6-9 months after Luke taking control was always going to be tough.. like a good politician .. sweep clean the decks, lay out all the gory bits for all to see, etc etc.. now the interesting stuff begins.

my opinion only etc do your own research.