You raise a valid point in that more ships is translating to lower iron ore prices.
At the moment there are no disruptions or fear of disruptions to global iron ore supply.
Along with other factors . . . . IO prices are affected by supply / demand.
Weather events such as last month's cyclone Ilsa that disrupted our shipping schedule, or rainy season in the Amazon that can affect Vale's production (generally around November to January) are amongst factors that can affect supply / demand.
So I will add supply / demand to samsonrises valid point of MGX being more beta / volatile . . . and optimistus's also valid point of taxation as we near June 30.
(Non passive investors do not have to sell to claim a tax deduction because the ATO allows non passive investors to use several different accounting methods, including valuing their holding on June 30 at market value).
IO price may be down from a month ago but going by a recent interview with FMG's CEO, Fiona Hick, demand for IO is strong for 2023 and 2024. China's imports of IO were up significantly year on year for March and April.
We have 7 ships in just 21 days . . . which equates to around $10 million revenue every 3 days.
We do not have long to wait for the next quarterly report, which going by current rate of shipping, should be an all time record breaker for MGX.
MGX Price at posting:
39.8¢ Sentiment: Buy Disclosure: Held
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