As a former mmx holder - sold all of them a few years back - I am concerned about recent posts that suggest mmx is not in a reasonable position. I am seriously now reconsidering a re entry as the price is now less than I paid shortly after the original float.
MMX does not have the 50% capital required for the infrastructure development, at the moment.
The way I understand it is that part of the funds will come from the sale of 50% of the ore to mitsubishi. The remaining funds could come from a float and/or sale of mmx share in the infrastructure asset plus loan monies.
I dont know the $ required by mmx but they should not have too much trouble raising the cash particularly as they have govt money in it.
As far as I know mmx is still pumping out about 2 mill tonnes /annum but its relatively low quality magnetite. Not sure if this is still so. If the profit is about $50 / tonne - they truck it to port (expensive) - then ore profit should be about $100mill.
MMX is unlikely to be taken over, particularly as they have posco on the books. However, my tip is they could sell all jack hills and their interest in OPR and start again a bit further north and all cashed up. Surely they could follow the AGO lead in this respect.
Alternatively, with that sort of cash in the pocket they could simply become a trading house / resource investor.
MMX Price at posting:
57.5¢ Sentiment: None Disclosure: Not Held
