MGX 2.44% 42.0¢ mount gibson iron limited

MGX is one of my largest holdings. Always tempting to sell off a...

  1. 71 Posts.
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    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 ! $510.2M
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41.0¢ 42.0¢ 40.5¢ $1.108M 2.659M

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42.5¢ 179187 6
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Last trade - 16.10pm 21/06/2024 (20 minute delay) ?
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