MGT

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17.0¢ magnetite mines limited.

I agree 1912.When you look at the in ground $$ value of ore and...

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Diabloracer

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11/08/20

12:29

Post #: 46451106
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Originally posted by 1912: ↑

Diab

Yes I read the Barry Fitgerald article that sets out the basic facts which have also been articulated on this forum a number of times during the past months..

MGT has been riding well below the radar for a long time IMo based on their 3.9Billion tonne (Jorc 2012) near surface, soft rock resource and considering the distance from deep water ports, rail, power and water etc when compared to other Aussie miners exporting from the Pilbara in Western Australia.

MGT has already sent samples of their ore shipped overseas for benficiation and produced a very high Fe 68.5% pellet product that attracts a US$25 per tonne premium to the standard Fe 62% grade ore which is now fetching some US$118.50 per tonne = US$143.50 per tonne (inclusive of the higher grade premium) for Fe 68.5% grade - so there is a huge margin at prices like this.

Even at an all up lower price of circa US$100 per tonne (US$75 + US$25) it would seem to be very profitable - as a comparison FMG produce low grade product at about US$13.50 per tonne for 170m tpa - so even for say a 4m tonne pa mine the margin is very signifcant.

There is a start up cost that needs to be funded of course - I don't know these numbers but at a US$400m ballpark figure and a 4m tpa production rate the surplus appears to be huge depending on the cost to produce obviously - maybe US$50 to US$70 per tonne to produce - (FMG is US$13.50) the numbers are very large.......all of this needs to worked through via a PFS/ DFS / BFs etc the early stages of which is underway.

HOWEVER, there is no way a takeover bid would be successful at anywhere near the current .004/.005c SP - those numbers would just not get the interest of major shareholders - so my own view being there remains plenty of upside at these levels and a SP of closer to 7c to 10c would attract interest........a decent bagger.

They have spent $35m during the past 12+ years to achieve the resource reported with more ground remaining unexplored - yet the market cap is now at $9m ......

All IMO - not advice - do your own homework.

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I agree 1912.

When you look at the in ground $$ value of ore and then look at the MGT's market cap of less than $9m it certainly has some serious upside to go to reach real value.

Im am sure there would be a few companies out there running the ruler over MGT.

At a 10c share price we would have a market cap of $200m would this be a fair price for the in ground ore?

I would have thought 10c at least in the current environment.

MGT Price at posting: 0.5¢ Sentiment: Buy Disclosure: Held
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Last 17.0¢		Change 0.000(0.00%)		Mkt cap ! $19.60M

Open	High	Low	Value	Volume
17.0¢	17.0¢	17.0¢	$33.25K	195.6K

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No.	Vol.	Price($)
6	91389	16.5¢

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Price($)	Vol.	No.
17.5¢	141000	2

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No.	Vol.	Price($)
6	91389	0.165
4	110000	0.160
2	15000	0.150
1	10000	0.145
1	20000	0.140

Price($)	Vol.	No.
0.175	141000	2
0.180	120852	4
0.185	51679	3
0.195	8310	3
0.200	104706	2

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I agree 1912.When you look at the in ground $$ value of ore and...

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