3 years ago they had 436 million in the kitty, 6 months of waste stripping ahead of them and were paying dividends.
Doesn't get much of a mention on here but that geotechnical issue is a bit concerning. For a company with a single producing asset, this could be fatal. Perhaps the risk vs reward just isn't stacking up for some... Increased stripping ratio, increased mining costs (depth), increased geotechnical risk, increased risk of no capital return.
On the flip side, if iron ore price remains strong and MGX is able to execute the rest of the planned pit then there is money to be made. It will just be more and more difficult to execute at depth and there have been significant problems achieving plan to date, so I remain doubtful of a smooth ride to the finish line.
They just seem hell bent on buying an asset out of self preservation / desperation. Unless they get Cockatoo Island or a minnow with an emerging decent resource for a good price (RTR?), I just don't see how they are going to add value to any purchase.
I've significantly downsized my holding but still hold a portion.
My 2 cents
MGX Price at posting:
50.5¢ Sentiment: Hold Disclosure: Held
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