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41.0¢ mount gibson iron limited

Well said.Two figures you should always remember when...

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macssharesforfun

2,973 Posts.

618

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
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(20min delay)
Last 41.0¢		Change 0.000(0.00%)		Mkt cap ! $498.1M

Open	High	Low	Value	Volume
41.5¢	41.5¢	41.0¢	$38.33K	92.79K

Buyers (Bids)

No.	Vol.	Price($)
8	97746	41.0¢

Sellers (Offers)

Price($)	Vol.	No.
41.5¢	100348	20

View Market Depth

No.	Vol.	Price($)
8	98750	0.410
9	97933	0.405
10	239420	0.400
23	542854	0.395
14	825937	0.390

Price($)	Vol.	No.
0.415	101804	19
0.420	302978	9
0.425	127984	6
0.430	103507	8
0.435	112486	5

Last trade - 10.53am 27/06/2024 (20 minute delay)

MGX (ASX) Chart