Hi ReallyrayIts my understanding that the $54USD mentioned is a...

Hi Reallyray

Its my understanding that the $54USD mentioned is a 62% equivalent price so NOT the actual opex for their 68.5% IO. So basically we don't know what the opex is for their 68.5% grade product. Its says in the PFS 62% break even prices = $54USD. So that doesn't tell you how much it actually costs them to produce 1 ton of 68.5%. And I haven't been able to figure out what they assume the grade gap is and therefore it is impossible to know what the actual opex is.

This in my opinion is pretty average they haven't put in clear information in. As per my example the grade gap may go up in relative terms when IO prices are lower, they will still go down in real terms.

So essentially we can't know exactly what the economics for MGT would look like in a low pirce IO environment, but based on the current numbers its not good.

Also managements choice not to clearly state either the assumed grade gap, or the actual opex for 68.5% ore makes me suspect they certainly haven't gone the conservative route.

If I was a MGT share holder I would be asking this very question ASAP!