Add in the value of Fenix + other listed investments and we are...

Add in the value of Fenix + other listed investments and we are talking close to $520m of cash + liquid assets vs a current market cap of $650m in a couple of months time.

At current $650m market cap, this implies a $130m residual value of business for an enterprise currently generating $350m to $400m of annual pre-tax cash flows. Even if only another approx. 4 years of mine life, this is still highly undervalued.

Quick NPV calculation on the value of mine at 4 years mine life and $250m annual post tax cash flows at a 10% discount rate = $870m.

Current value gap for the residual mining business between Mr Market ay $130m and NPV @ $870m is $740m or +$0.61 cents per share over and above the current share price - so implies a "fair value" of $1.15 per share.

I am not saying that this is definitely going to $1.15, but just highlighting the valuation gap and the potential for a significant re-rate in time.

This excludes the optionality that exists with MGX investing some of the cash into other emerging resource assets where the cash injection creates value (eg a promising asset with a strong NPV but an owner without the resources to develop and so MGX able to cheaply invest). Achieving an accretive outcome through such investment requires a disciplined approach by MGX, but the MGX team are proven operators and so would be attractive partners to a resources minnow with a good asset put together by some Geo's but no cash to develop plus inexperience in mining operations.