..I thought I would be returning home to a much happier state of affairs regarding Our beloved MMX aswell as the world Economy..But Turbulence and uncertainty continues..
But with regard to Murchison..Dont forget the underlying fundamentals..
MMX owns a massive iron ore mine called jhep....conservatively valued at $800 million...by all and sundry when the lowly lizard was suing for half...also when appealing for 24% of estimated value of $800 million..this only weeks ago..so assuming the value hasnt changed too mucch...where else can you buy a proved up resource of 3.2 billion tonnes.....and its totally key to the whole mid west being opened up..which it will..china needs it....
So if we say mmx has an asset worth 800 mill..then no matter what with 400 mill shares out there roughly equalls $2 per share....But I hear you say mitsubishi owns 50%....yes...once they pay for it..so then MMX value at Half ..equalls 400 mill or $1 per share plus whatever Mits pay..either way somewhere close to $2...
But they may go broke......Well i saw in annual report that they have $12 mill in cash plus about $75 mill in loan facility...and at rate of scaled back cassh burn..that will likely last for about2 years!! so plenty of time....Things look bad....but always remember...Every storm has an end.....
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