it certainly is difficult to reconcile MGX price bounce and...

it certainly is difficult to reconcile MGX price bounce and prevailing Fe prices. I was in GRR for quite some time and exactly the same was true ... for a long time Fe prices said that , but GRR's price stayed there Any resetting of GRR didn't happen until very late in the rising price cycle which delivered profits which could not justifiably be retained by the company. But it's price too fell down the lift well when prices blinked. I recall that GRR was once valued at slightly more than its humongous cash pile and a PE ratio of substantially less than 1. My sense is MGX too will traverse a similar cycle.

For me, the market is skittish long before Fe prices because of a handful of macro issues : China's (and more generally, the World's) broader economic outlook; geopolitical unrest more so in the South East Asian region (heaven for bid if Taiwan eventually invades West Taiwan...), medium to long term steel demand, blah blah blah. I have no doubt, Australian investors are also skittish because of a predominant Chinese ownership ... I think it fair to say that the Chinese preference is least cost price stable key industrial ingredients : Australians are possibly more interested in franked cash flows. There is and will forever be a different perspective. What MGX might do next will unsettle many Australian investors as I have no doubt the sphere of curiosity will be broad and bold. I think somebody on this forum mentioned they might pursue a precious metals opportunity. I personally don't think that would be a good fit for an Fe miner but I could see it being on MGX's radar...

With the above in mind, I think it not surprising that MGX's price bounces around contrary to Fe prices. Any market valuation will be a here and now interpretation of what people think will happen in the near term and a headline Fe price softening will weigh heavily. The trick I think is to watch dissipation of longer term insecurities.

Lastly, we should never ignore the impacts of AUDUSD... it has a habit of at least softening the blow of price weakening...


62% CFR China US$ (LHS); AUDUSD (RHS)

Have a great day