the fundamentals, page-6

I agree Lara, however while there is future expenses as far as capex and pre stripping there is also significant profit being generated every month that will cover this. 2H 13 should see around $100m in NPAT and 1H 14 could be anywhere between $40 - $100m depending of course on the iron ore price. That is a lot of money in anyone's book and will mean that they won't have to touch the $280m odd already in the bank.


As far as investment goes I would actually prefer to see MGX start an on market buy back. This would not only reduce the shares on issue but more importantly send a message to the market that mgmt also believe this stock is way too cheap. If as we all hope this iron ore sell off is over done they could do a placement or rights issue at a higher price when they need the cash to make an acquisition. Essentially MGX could buy there stock low and re sell it higher which would result in a not dilutionary cash injection.

Either way you cut it of all the 2nd tier developers such as AGO and FMG in my opinion MGX is an absolute standout.