MGX can't get re-rated until it starts shipping a decent amount of iron ore.
Three ships in a quarter don't rate MGX as a profitable miner.
Three ships in a quarter is the same as the December quarter where MGX lost another $108 million.
December qtr lost $108 million
September qtr lost $115 million.
There is only $142 million left in the kitty. (31st Dec 2021)
Loss for March quarter will be $100 to $110 million.
So that will leave $30 to $40 million, which will last 6 weeks at the current cash burn rate.
https://ausinvestors.com/best-asx-iron-ore-stocks/MGX is shown as having the potential to improve but without ships lining up then its closer to bankrupcy that making profits at present.
- Has been unprofitable; released target downgrades
- Prone to weather issues leading to missed production/guidance
- Flagship iron ore asset has limited mine life
- Secondary asset also currently suspended
Compared with other iron ore miners, MGX is considered as the bottom of the barrel.
Unless MGX starts shipping at the rate of one ship every 2 weeks, then it will stay at this level.
I wonder what the excuses will be in the Mrach quarterly report and how much more will the production be downgraded.
Trying to pump up the stock with graphs and unrealistic expectations is pointless until ships are loading and profits are made.
One can only hope the June quarter is an improvement, if it isn't then MGX will be in a desperate situation with all cash reserves GONE.
(20min delay)