Next Mining Boom Coming, page-29

Just a heads up on my previous post about pricing and costs. The details of Extension Hill can be found on page 7 of the AGM presentation from Aug 16 - the pricing figures were as I mentioned but the cash costs were around $44-46 per tonne - all in costs are around $51 but that includes admin costs but doesn't include interest income. Last year interest income was circa $12 million and admin costs were $14.8 million so with the extra interest this year from the insurance payout there won't be much difference between the two, In other words costs will be closer to $45 per tonne not $50 so that should make it easier for Extension Hill to be profitable - and further strengthens my argument that MGX should not be trading below cash. Its also worth mentioning that MGX has 500,000 tonnes of high grade ore on hand at June 30, over half of which was crushed so that would be worth close to $40 million in todays prices.

Lump is still fetching around a 35% premium which is over half of Extension Hills production - MGX should be making good money at the moment.

I've attached the slide. GLTA/IMHO