production 2004/5

The Geraldton Port Authority trade stats for last financial year have reported 1,866,491 tonnes of iron ore for that period. That is in line with what MGX told the market they would export.

This is a really good achievement by the company. Why is there only RIO. BHP and MGX now as aussie public companies actually shipping iron ore off shore. (Everybody knows Portman is 92% overseas owned and faces imminent takeover).

It is not easy to become successful in the iron ore trade, due mainly to initial capital associated with bulk transport costs. Once established, profit margins are wide so as to allow for start up cost recovery.( just basic business principles, of course that is the way it must work.

We have a company here after its first 12 months of production, with nett $35 million cash. They have 10 years of direct grade ore measured resource, with upside potential at four other locations in the mid - west. (source May 2005 investor briefing).

Should MGX confirm their May 2004/5 guidance of $21 million, they will go on to a PE of 12. (about the same as JBM and half that of Lihir and Newcrest. The whole point being the iron ore price rise was effective for 1/4 of the year/more rail waggons will sonn see production rise 50 % and all this excluding all success from their proposed pellet deal.