The MGT story was always going to be dependent on IO prices...

The MGT story was always going to be dependent on IO prices remaining at (historically unsually) high levels. Just look at all the news releases and tweets from the company during the past six months, they have been bombarding us with articles and tweets about how the demand for high grade iron concentrate will remain high for many years to come. Setting the stage for the PFS.

The reality is that the NPV of the project is too low and the CAPEX in is too high (and mixing USD and AUD in the announcement is also highly suspicious). Simply too much risk associated with declining IO prices. And remember, we are still 3-4 years away from production.

Some of you will say that the current calculations only take into account 16 % of the total resource. Looking at the geology and the spread out, thin ore horizons I think it will be a challenge to high grade the deposit further, or do selective mining.