And I do remember MGX saying they wanted to stay in Base Metals...

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AlbertE

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20/12/23

10:09

Post #: 71542471
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Originally posted by Goodheart: ↑

Hi AlbertE

I agree, a small junior with a market cap of $50 billion may not appear to be a fitting aquisition for MGX which has circa $400 million cash and rapidly growing to $1 billion in cash.

I doubt that FEX is of any great interest to MGX as Shine is low grade and was on care and maintainance as it was regarded as not economic to mine right up until we sold it to FEX. Also FEX incurs a lot of expense in trucking ore.

MGX has a relatively small investment of $3 million spread across 5 undisclosed juniors which MGX are closely monitoring. I suspect that these juniors are explorers and MGX are monitoing them closely to see if any look like suring up a decent size ore reserve, that often then needs a cashed up player to build the infrastructure to turn it into production.

To date, all of MGX's mines have been in WA.

MGX have been tight lipped about results of ongoing drilling at Butcher's Track on their Tallering Peak tennament near Mullewa . . . the only mid west asset that MGX did not include in the recent deal with FEX.

MGX has mentioned mini underground for Acacia and Deep Main Pit in 2 reports of the previous CEO. The previous CEO stated in 2015 in an interview with the ABC that KI had a life of mine of several decades (I posted the transcript of the interview with the ABC here recently).

Koolan South, a tennament of 100s of square kilometres, directly opposite KI, on the mainland, has had some exploration done but MGX did not publlish the results.

My tip for a fitting merger / takeover for MGX is ALK, Alkane Resources, a gold producer and self funded explorer in NSW, who are infill drilling to turn a massive resource into a massive reserve, that will need in the magnitude of $1 billion to put it into production. Approval has already been granted by NSW State Planning for ALK to relocate 8km of the Newell Highway to make way for open cut. ALK's CEO, Nic Earner, is very open, always accessable and informative, and has stated ALK will soon start dividends. I currently do not hold ALK but am keen to get back in.

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And I do remember MGX saying they wanted to stay in Base Metals rather than say precious metals. They may want to remain in a metal they know how to develop and can apply their experience.

MGX Price at posting: 55.0¢ Sentiment: Buy Disclosure: Held
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And I do remember MGX saying they wanted to stay in Base Metals...

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And I do remember MGX saying they wanted to stay in Base Metals...

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