RogickWell you are correct about the methodology to accurately...

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Beardy

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03/02/22

14:32

Post #: 59331977
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Originally posted by rogick: ↑

Hi Beardy,

What valuation methodology and assumptions have you used to arrive at that conclusion?

The cash burn was largely required for the waste stripping program to significantly lower unit cash costs per tonne shipped (progressively declining to a ratio of 1.5:1 from mid 22) + footwall anchoring/crusher project upgrades.

Model out the free cash flows over the next 5 years (not including the possibility of a mine extension, which is looking likely to the west and east strike zones of the main pit + the Mangrove deposit), apply an exit multiple, and share with us what valuation you arrive at to corroborate your comments.

On an unrelated note re. shipments, Peter highlighted on the investor call that the ramp up profile would be lower in January and progressively increase over the following months. This of course is a sensible and conservative estimate based on the wet season, but one of which is captured within full year guidance.

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Rogick
Well you are correct about the methodology to accurately value the shares , but I don't have sufficeient data in particular magin , to do the analysis.
Do you have the data to share ?
Market Cap less cash is about $ 400m and this is a lot for a short lived asset with no sale value at end. Possible major rehab costs.
IOP is unknown but Capial Economics are forecasting major price falls in coming years.

MGX Price at posting: 44.0¢ Sentiment: Hold Disclosure: Held
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