With the recent falls in the IO price below $47 Altas shares...

With the recent falls in the IO price below $47 Altas shares have gone into a trading halt!

I'll be surprised if their creditors think it's wise to continue operations with IO prices at current levels and no reprieve on the supply front from the majors.

This is good news for MGX and the IO industry.

The sooner that higher cost/higher leverage producers cease production the sooner that supply finds demand (and a price floor) and gives the producers the power to charge at the rate of marginal cost of production rather than an industry wide war of pushing prices below marginal to cash costs.

So that's the good news - the shakeout has now begun - now the bad news - MGX's cash costs are $45 - $47...

So from here on out further falls in the IO price mean MGX will be burning cash if it continues producing!

I suspect the IO price will fall lower from here as well...

Personally I don't think we'll find a bottom in IO prices until something goes "snap" in China - ie like a few major property developer bond defaults that cause global liquidity to tighten.

So what I'm interested to know how much lower people think MGX can get their cash costs? Can they get them down to $40/t by the end of 2015?

If not, how long will the MGX management continue operations at below cash cost levels (ie how much cash are they willing burn)?

I know they have the balance sheet to continue operating, but I'm wondering if the consensus is around "if they should"?