Ann: Quarterly Activities Report, page-13

So all in all a pretty good report, given the trading conditions and MGX's production status.

Some interesting points from the report -
* Cash increased by $15mil to $345mil @ 31/12/2015. It would be interesting to know how much of the $15mil came from interest from their $330mil last quarter...
* Making some $ at 'Average' cost of AUD$50-$54 for FY2016. This will reduce further in this quarter due to lower prices since.
* KL seawall  - potential rebuild options. Geo drilling continuing so hopefully by end of Q3 2016FY we should have a decision on rebuild, or not...
* KL seawall Business Interruption claim should settle in this current quarter. Will be interesting to see the final outcome and how much cash this adds to the coffers.
* EH - interesting they have included provisional figures for 'cost obligations'. If io price stays at current levels or reduces, this would indicate they have at least considered contingency planning for 'care & maintenance'?
* Acquisitions - "...continue to evaluate potential new RESOURCE acquisition opportunities..." The thought of a Dick Smith or Masters acquisition probably convinced MGX to add this specific reference....???

It has occurred to me that, given the prevailing market conditions, whilst all holders would have cursed it at the time, the seawall collapse could well be seen in the future as a blessing in disguise for MGX and a potential savior of the company for the long term. It again proves the value of insurance...

One thing is also for certain, as commodities continue to fall, there will be more and more 'acquisition opportunities' for MGX to run their eyes over.

In closing, a couple of facts -
* A $0.005c Special Dividend as suggested in an earlier post today would cost MGX under $5.5mil, although i would think would only be declared at the EOFY results announcement in August.
* At $3.45mil cash, the cash backing per share at 31/12/2015 sits around $0.315 cents per share. And the current price is....???
Food for thought anyway...

Change in sentiment, for me....

GLTAH.