the potential takeover by the Chinese prompted me to do a very simple excercise of cash value and cash flow of Mgx at current IO prices for the high grade material and work out once KI was mined and completed only 6 years away what would be the final cash balance. Mind you this does not include interest earned on the money nor does it include dividends and capital distb. As MGXs NPV figures include Corp costs and closure costs and as the NPV incorporates development capital then one simply takes 477m and adds to 536m to get 1.1 b . In reality the funds spent so far - 55-60 m should be added back as well
So that is 1.15 b. At a market cap of 470m one can see why the Chinese could launch a TO without blinking . Another way of looking at they could acquire cash flow from KI for not much at all
If an impending credit tightening happens globally and some as expecting - MGXs choces of assets will be plentiful
MGX Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
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