This acquisition angle is one of the two reasons for my not investing in this company. Cashed up miners have historically destroyed shareholders value with them. I have not researched the asset acquisition and development nous of the management team, if anyone can fo a tldr on managment's acumen in this particular area?
The second reason ties into the first, the disalignment if major shareholders interest with minor shareholders. The realized price of the supposedly superior grade iron ore is consistently at a substantial discount to 62% fines. Why? The largest shareholder is also a trading company, so I suspect they but it from mgx at a discount and book a trading profit. I feel like any upside from any acquisition will be capped by this continued behavior. If anyone has any way to dissuade me from these views, please, I would love to believe a company trading at a significant discount to NAV is investable.
MGX Price at posting:
31.5¢ Sentiment: Sell Disclosure: Not Held
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