Just listened to the conference call - not a lot of new but here...

Just listened to the conference call - not a lot of new but here are few points:

1) KI is progressing well - the CEO considers the ore from KI to be the best in the world with above grades of between 64-67% - well above the 62% index benchmark and it also has a very low silica content. He went on to state that KI would be profitable even in a low price environment.
2) The company has around $240 million in tax losses. This is good to know since the last thing we need is the company paying tax, if its not going to come back as fully franked dividends. We've already got $61 million in franking credits so this will carry us through the next couple of dividend payments.
3) The BI claim is still progressing and he made no comment re final result - I've never valued the BI claim myself but given the duration of the claim maybe there is some value in it given the fact that its still progressing.
4) They were looking at other acquisitions but nothing had appealed to them. Either way I'd settle for a big dividend/cap return and leave the company to focus solely on KI.
5) The company will be making very good money from Iron Hill based on current prices.

A couple of other things in response to this mornings posts:

1) Macquarie seemed to think that that the cost of restarting KI was around $90 million - this can be easily covered by MGX's existing cash. They were forecasting around 15 million tonnes over approx 4 years at a cost of around $35 a tonne - this would deliver around $80 a tonne profit or $1.2 billion for the mine at today's prices.

2) Disappointing that there was no dividend - however I seem to recall a few years ago the board to decided to pay a final dividend only so I do think given this years profit and current pricing that the company might pay a 4 cent dividend come August if the existing prices stay strong until then.

Jim Beyer sounded very upbeat and confirmed the KI decision was on track for this quarter - I would like to think this would generate a rerate of the company (looks to me like its already happening) that might get the share price between 80 cents to $1 depending on actual spot prices. Either way if KI goes ahead MGX will be operating profitably for at least the next 5 years.

GLTA/IMHO