It has 140m cash now, not 160m. Feasibility studies are not cheap, it will easily consume 80m+ on them.
"it can takeover GBG or some other small iron ore company"
Right, Ansteel have a current 12% stake in GBG which is enough to block any takeover, its stake will soon be 36%. Do you really think after years of planning and 200m spent to date on Karara that Ansteel will just let MMX and its "140m"/script take them over? MMX needs all the cash it can get to get its future projects online. It really only has script to offer, so a micro cap is its best option.
What companies could MMX takeover? Please enlighten us. MIS was its best bet at a takeover for synergies but Sino stopped that.
Yes, ironore is all over the Midwest and Pilbara however a lot of it is rubbish, and not feasible to mine. MMX does not need to takeover a small IO hopeful with low grades because they already have that...I agree re getting the ore to sea comment however stocks like GBG and MGX already have capacity through POG and using existing infrastructure. MMX via Oakjee will simply increase tonnage.
Best thing MMX has is the infrastructure potential, however it has to share it with the Midwest in the first place. Oakjee benefits the entire Midwest, not just MMX. MMX does not have the resource to make its feasible by itself.
MMX Price at posting:
98.0¢ Sentiment: None Disclosure: Held
