Ann: Quarterly Activities Report, page-17

Hi all,

I am basically just trying to figure out how much it costs MGX to produce a tonne of ore and how much it sells it at, pretty simple stuff.

"All-in group cash costs** of $44/wmt FOB"

Easy enough.

"MGX FOB Ave. realised fines price US$/dmt 30"

Selling at 30 when it costs 44 to produce raises questions, not to mention the difference between wmt/dmt?

"Realised Pricing and Revenue
The June quarter average Platts CFR price (which includes the cost of shipping paid for by the iron ore supplier) for 62% Fe fines delivered to northern China was US$65 per dry metric tonne (dmt)"

The realized fines price of 30 is directly contradictory to the later reported 65?! What is going on, can anyone explain?

Lets go to the other numbers:

Steady quarterly sales of 1.0 million wet metric tonnes (Mwmt), for sales revenue for the quarter of $45 million Free on Board (FOB).

Okay, so they sell a wet metric tonne at $45.
Cost to produce a wet tonne, $44.

Is this the true story then?

I am just trying to take the numbers from their report, its like they are actively trying to obfuscate their performance. If it wasn't for this every poor communication of their results I would be buying today at the current price but this has concerned me greatly.

Can anyone explain why there is so much confusion as to what they actually sell their products at? (And what prices they actually get per dmt?)