Why are people so concerned with the value that MGX has compared to GBG?
Just over a year ago MGX was at 80c (Market cap of $600m)...
This was despite everything going "favourably" for them: - iron ore prices - production (timing) - aztec resources takeover
Then what we saw was a rapid re-rating within 6 months it had over doubled then in a year it has quadrupled.
Even Fortescue has gone from $1.30 to $9....in over a year....as they had approached production...
Stocks such as AGO and GBG will have massive re-ratings as they approach their respective production schedules...
TheGimp Also following on from Ridd1cks $30 price target.....if you look at their earlier announcements they have always had 40 - 50 mt per annum in mind. Given Ansteel want good quality Iron, are half owners, are expanding to 50mt per annum it is definitely feasible. The only thing holding them back is the rail and port infrastructure.....GBG could produce upto 80mt per annum for 20 years from what we are looking at in total upside potential....
GBG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
