MGT share price, page-8843

100%

For anyone who bought in high this is now their chance to buy in low. Management made it more then clear the initial operation would be small to negate the risks that come with securing funding for a mine.

Iron ore has just come back down from an all time high, unfortunately just as our PFS dropped. The post covid construction boom hasn’t even begun yet and countries are now just starting to factor in carbon credits on materials, our product will be hitting the market at the right time.

Anyone worried about what Vale is bringing to the market should look at the US plans for infrastructure spending. They’re literally talking about an ‘infrastructure decade’ and will be looking to build their way into economic growth, similar to what China has done. Expect plenty of that material to go into increasing US steel production.

India has plenty of their own low quality, iron ore which is great for creating materials for domestic consumption and not so much for exports once carbon pricing is added in. Considering India plans to increase their steel exports massively over the next decade, they’ll need higher quality ore that can be reliably sourced. Democratic nations have started the pivot away from China and I fully expect India to play a massive role in the coming years.

People need to look at the news, even today, and see that we’re looking at strengthening trade with India to protect ourselves from Chinese conditional trade. Iron ore and to a lesser extent coal, will both be big components of such talks. We are yet to see what sort of Indian investment could very well come to our shores.

Japanese steel production also continues to grow. They are at the forefront of the green movement and already have the gas infrastructure in place to move into hydrogen fueled steel production. Australia already has massive Japanese investments in our LNG and will do the same with hydrogen. Iron ore will follow.

The fundamentals are clear and the PFS has provided our first clear insight into managements plan to get there. We have a fully funded DFS which has started ahead of schedule. We were the biggest gainer for the 2020-2021 financial year leading into the PFS and could very well do the same for 2021-2022 leading into the DFS.

For anyone who invested looking to flip shares post PFS for a quick buck, well unfortunately that isn’t going to happen. For those who bought pre-PFS wishing they could secure a bigger share on the way to production, well this is now your chance.