Macquarie upgrades MGX by 20%, page-7

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Samsonrises

843 Posts.

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12/06/21

16:58

Post #: 53813096
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Originally posted by jdpc35: ↑

Samson - agree with your analysis. On my modelling, they will generate at least 30cps of free cash flow in FY22 (depending upon your IO price assumptions - I am working off USD135/t FOB and exchange rate of 0.80).

Even if they pay out 7cps dividend, they will add a further approx. $300m to the cash pile and as you say, they can be looking at quite a sizeable and value accretive acquisition for cash and maybe a little bit of debt - add that together with a market re-rate for their underlying EPS from existing operations and you can easily see a share price north of $3.50 / $4.00 in the next couple of years.

I was fortunate in that I became aware of this stock at $0.20 mark several years ago. It continues as a long term hold in my portfolio due to the yet unappreciated potential (just as it was similarly unappreciated back in 2015). I prefer these sort of longer term stocks with a clear strategic trajectory to the "get rick quick" plays that so many seem to chase. Whilst they may be under the radar of most, once the market wakes up to them, they become really interesting really quickly - I suspect that will be the story for MGX when we look back at this stock in a few more years time.

GLTA and (the best tip ever) is DYOR!!

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....and JDPC what does it tell you when you look at the share registrar with DeBortoli Wines Super Fund have 44 million shares invested in MGX

MGX Price at posting: 86.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 38.3¢		Change 0.008(2.00%)		Mkt cap ! $454.4M

Open	High	Low	Value	Volume
37.5¢	38.5¢	37.5¢	$64.83K	171.3K

Buyers (Bids)

No.	Vol.	Price($)
11	52604	38.0¢

Sellers (Offers)

Price($)	Vol.	No.
38.5¢	195112	9

View Market Depth

No.	Vol.	Price($)
11	52604	0.380
9	318501	0.375
5	222371	0.370
11	376853	0.365
6	213704	0.360

Price($)	Vol.	No.
0.385	195112	9
0.390	190835	10
0.395	322738	7
0.400	220002	15
0.405	82300	2

Last trade - 10.58am 28/07/2025 (20 minute delay)

MGX (ASX) Chart

Macquarie upgrades MGX by 20%, page-7

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Macquarie upgrades MGX by 20%, page-7

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