mgx price on monday, page-21

I think the market will view any cost cutting and reduction in expenditure with approval. The below points from the latest ML paper are worth noting!

In addition, if Tallerang Peak operations were cut to run down the excess
inventory, another $50m of cash would be generated. In addition, some $100m
from deferring waste might be deferred, and $50m from Extension Hill capex
could be delayed. Assuming this additional $200m of cash could be extracted,
MGX could still generate $550m net cash on hand by June 2010, even with a
45% iron ore price cut (ie to US$50/t fro 63% fines).

** Obviously this is assuming that they have a buyer for their ore. I suspect there may be some agressive pricing by producers to sell their product.