Australia's largest stock trading and investment forum Australia's #1 stock forum

MGX

Click for more information

3.23%

32.0¢ mount gibson iron limited

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

First 22 Last

Share
Profile

Follow
macssharesforfun

3,048 Posts.

656

19/03/20

12:12

Post #: 43580492
Share

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...

Expand

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

0 Great analysis

Reply

Top Stories

PFE

Pantera begins drilling of maiden test well at Smackover

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

C29

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

QHL

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

There are more pages in this discussion • 50 more messages in this thread...

First 22 Last

Add MGX (ASX) to my watchlist

(20min delay)
Last 32.0¢		Change 0.010(3.23%)		Mkt cap ! $388.8M

Open	High	Low	Value	Volume
31.5¢	32.0¢	31.0¢	$251.4K	801.7K

Buyers (Bids)

No.	Vol.	Price($)
1	2417	31.5¢

Sellers (Offers)

Price($)	Vol.	No.
32.0¢	186990	4

View Market Depth

No.	Vol.	Price($)
1	2417	0.315
2	90000	0.310
1	125000	0.305
12	494993	0.300
3	92300	0.295

Price($)	Vol.	No.
0.320	186990	4
0.325	156245	6
0.330	71078	4
0.335	241800	4
0.340	507809	11

Last trade - 16.10pm 07/11/2024 (20 minute delay)

MGX (ASX) Chart