Short term Bottom hit?, page-21

Sure, MGX is having a few production problems, namely a higher than expected stripping ratio and lower production. This has resulted in a higher than expected cost of production per ton. MGX has indicated that the cost per tone will fall when production reach it's peak. Remember, it has only been a couple of months since start up and it will take a little while before they can reach peak production. The iron ore is still in the ground waiting to be dug up. I am sure come the September quarter numbers things will be looking up again. Meanwhile we are still cashflow positive. Patience is a virtue.