As a result of the Shougang buy in, they will receive HALF of the production ie 2.5 mtpa. Because of the equity of $120 million they are putting up, payment to MGX will be reduced to the extend that profit from this half of production will be enough to service the MGX loan only.
The other half production of 2.5 mtpa will enable MGX to achieve much higher profit margins. It can only happen because of about $180 million that Shougang are putting up to kick start the project.
So complex that it may scare off even bigger investors who cannot understand it.
Remember as a result of Shougang deal today, we can now value MGX magnitite deposits at about $240 million.
More later.
As a result of the Shougang buy in, they will receive HALF of...
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Last
31.5¢ |
Change
-0.015(4.55%) |
Mkt cap ! $383.7M | |||
| Open | High | Low | Value | Volume |
| 33.0¢ | 33.3¢ | 31.0¢ | $846.6K | 2.641M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 93644 | 31.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 32.0¢ | 95399 | 2 |
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| Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
| MGX (ASX) Chart |