I think the reason for the sp weakness is contained within a mix...

I think the reason for the sp weakness is contained within a mix posts:

1. Management have had trouble in the past communicating the story - the appointment of Tonkin has not yet proven any different..

2. Management have issued some bullish forecasts previously but have gone into hiding when for various reasons they could not deliver ..only brief comments of slippage hidden in commentary within annual reports.. the market does not like such disclosure issues..

3. The dispute with the contractor could be causing some further slippage ...the minimum 2mtpa looking shacky???

4.Possible manipulation of sp - why the run to 86c on volume at the end of Nov ?? Depth was weak .. further opportunity to shake some loose stock?? Stop losses in place also??

If you are a MGX follower you will know that news is imminient- fundamentals hopefully should prevail..

1. Potential Iron ore price Increase
2. Asia Iron JV - BFS due this month- previous financial parameters provided robust results - $50m NPAT pa averaged over life of project- even if this number is reduced for cost increases to say $40m pa the project will still be earnings positive to the tune of about 8cps once operational- hopefully no slippage here..
3.Shougang committment on two fronts - 50% stake in 2 above plus confirmation of investment of 60m shares a 75c by 31 Jan..
4.Confirmation of financing arrangements
5.Confirmation of the delivery of new rail wagons to increase production to 3mtpa by 1 July 06

I can see the story & have for over a year but as I have said in previous posts management hold the key!!

The next few days of trading will be interesting in deed ... BJ has previously indicated that it was managements view that Shougang would commit sooner than later ie before the 31 Jan deadline ...

Good luck to holders..