MGX share price, page-14

Yeah, it really is an anomaly. There are companies out there that are barely turning a profit, have a poor track record and clueless management that are trading on much better terms than MGX. It'll just take some time for the market to adjust.

Granted, there is a big issue for MGX regarding the Iron Ore price, but the business is well insulated with their cash pool (I've posted before that the interest on the cash alone is circa $35m annually).

Their cost base is low and their mineral grade is on the higher end. Unfortunately mine life is a concern to some, but there's plenty of dirt out there - and I don't see this as an issue.

While I'm not going to sit here and try to predict what the Iron Ore price will do, I can only say that it is cyclical, and surely at some point the appetite for Steel will increase - in China (7.5% growth in GDP), India (4 - 6%), The Philippines (7.2%) or Sub-Saharan Africa (very promising - but who knows!)