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
42.0¢ |
Change
0.010(2.44%) |
Mkt cap ! $498.1M |
Open | High | Low | Value | Volume |
41.5¢ | 42.0¢ | 41.0¢ | $177.4K | 430.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 28355 | 41.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
42.0¢ | 308852 | 11 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 28355 | 0.415 |
20 | 122588 | 0.410 |
9 | 244241 | 0.405 |
11 | 362932 | 0.400 |
24 | 548198 | 0.395 |
Price($) | Vol. | No. |
---|---|---|
0.420 | 308675 | 10 |
0.425 | 137706 | 7 |
0.430 | 107448 | 9 |
0.435 | 112486 | 5 |
0.440 | 112943 | 5 |
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