MGX is one of my largest holdings. Always tempting to sell off a few chunks and spread the money around a bit. But it's really hard to get past just how low its valuation is. Even by the crazy-low standards of everything else at the moment. In Year 2 of KI operations, MGX plans to sell 2.6Mt of ore. At the current price of US$89/ton, plus a premium for the grade, less some shipping costs, MGX is probably netting around AU$150/ton right now.
If they were to ship the whole of Year 2's 2.6Mt production forecast at that level, that's $392M. All-in cash costs are around $176M. So that's cashflow of $216M.
Or put differently, adjusting for the cash pile, it's generating 50% of it's market cap in cash annually.
And there's a bit of treasury returns and some rail charge refunds.
You just can't sell an asset like that...
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Last
44.3¢ |
Change
0.008(1.72%) |
Mkt cap ! $540.6M |
Open | High | Low | Value | Volume |
43.5¢ | 45.0¢ | 43.5¢ | $359.5K | 808.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
11 | 183558 | 44.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
44.5¢ | 296873 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
12 | 193558 | 0.440 |
9 | 219764 | 0.435 |
8 | 502031 | 0.430 |
8 | 136755 | 0.425 |
7 | 257712 | 0.420 |
Price($) | Vol. | No. |
---|---|---|
0.445 | 303355 | 5 |
0.450 | 378899 | 16 |
0.455 | 218195 | 7 |
0.460 | 282166 | 9 |
0.465 | 197549 | 3 |
Last trade - 13.26pm 05/07/2024 (20 minute delay) ? |
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