MGX 1.56% 32.5¢ mount gibson iron limited

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  1. 12,250 Posts.
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    So nobody cares about the fact that MGX is only digging out low grade iron ore?
    Or is it that you just don't like being reminded that MGX is only digging out low grade ore and is missing out on premium prices when they're at record highs?

    MGX won't be producing Shine's 58% low grade iron ore until Sept quarter.

    "Development activities on the Shine Iron Ore Project in the Mid-West have accelerated with initial site works now commenced and shipments targeted for early in the September quarter."

    Koolan Is is only going to be digging out low grade ore until the September Quarter.

    "During the March and June 2021 quarters, shipped product grades are expected temporarily to reduce to an average of 58-61% Fe, reflecting an increased proportion of lower grade ore sourced from the upper west end of the Main Pit while the overburden stripping program continues in the high grade areas. High-grade (~65% Fe) material from the lower levels of the Main Pit is targeted for access in the September 2021 quarter."

    How many months will MGX produce only low grade ore?
    Low grade ore prices are falling and the margins are widening for high grade ore and pellets.

    “The emissions restrictions in Tangshan pushed up demand for high-grade fines and iron ore concentrate despite the decrease in overall iron ore prices,” a trader told Metal Bulletin."

    This is not to say that MGX won't do well in the future, but unfortunately they 'll miss out on the current high iron ore prices.
    Its a fact whether you like it or not.
    I'd expect the MGX share price will go lower after the next Quarterly as MGX won't be producing from Shine, nor Mid-West as its already finished. So MGX will only have low grade 58% from Koolan Is to ship, most likely losing money at present.
 
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