thoughts , page-3

I have being doing some calcs and this is what I conclude
With the additional stripping bought forward to this quarter plus the divi that has been paid I expect only a very small increase in cash this quarter
However as the stripping done now results in lower stripping in later years I think it's great to do it now . If one looks at average costs and then looks at costs a mature mine in MGX portfolio one realises the cash generation in the later years were stripping falls significantly to 5 to 1 and less the margins increase significantly
With mining costs estimated to fall to 8 dollas at koolaj in a couple of year and strolling ration to fall towards 5 to 1 that essentially mean 48 dollars to mine a ton of ore ( 6x8) which in turn means profitability with an ore price of 80 is still heathy . So MGX are using the mature business with low stripping rates to generate the cash to strip the waste from Koolan which will in initself provide for cash in the future . If MGX manage to t he heavy lifting now and still can grow or even maintain cash while paying dividends then they will do very well. I expect by year end we will have cash circa 360-370 million and a lot of waste removed from Koolan island

It's a solid business and the cash intself generates enough income to pay for a quarter of yearly dividends