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44.3¢ mount gibson iron limited

Where is the bottom?, page-22

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macssharesforfun

2,977 Posts.

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19/03/20

12:12

Post #: 43580492
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Originally posted by pseudonym1: ↑

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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Well said.

Two figures you should always remember when considering MGX - 65% fe price and the AUD price.....

This morning =
65% fe = $105US per tonne
AUD = 0.5797 USD

As long as Koolan can stay COVID19 free and maintain production, I'll keep buying on any dips......

GLTAH

MGX Price at posting: 70.5¢ Sentiment: Hold Disclosure: Held
1 Upvote

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(20min delay)
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¢	303708	10

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)

MGX (ASX) Chart