Iron Ore up to $US86.62 or AUD$112. After discounting MGX should...

Iron Ore up to $US86.62 or AUD$112.

After discounting MGX should be pulling in $30 profit a tonne for its 58%+ grade.

The lower quality ore sitting in stockpiles has already been stripped and mostly crushed so the costs on it would be in the high $20/low $30's, so they should still be in pulling in $20+ profit a tonne on that.

Long story short the Iron Hill mine at these prices should be worth 6 million tonnes by circa $25 a tonne or $150 million.

It beggers belief that MGX still trades below cash backing given the value of the short term stockpiles and Iron Hill over the next 18 months.

KI has some of the highest grade ore in Australia - at current prices it would be worth in excess of $1 billion.

Then you've got $61 million in franking credits too boot.

So in my estimation the value of MGX is

$450 cash
$150 Iron Hill & Stockpiles
$60 Franking credits (the cash is there to use them up so they should be valued)
$500 KI (50% risk adjusted but at the end of the day they just got to build a wall to hold the sea water back - the dutch have been doing this for hundreds of years)
$1160 Value or just over $1 a share - if you want to exclude KI then its worth 60 cents. If you include the full value of KI the stock would be worth closer to $1.50.

It goes to show the power of the bots in suppressing the price - any rational analysis would put a value on this stock of at least 60 cents.

Its about time the market valued it accordingly - management should at the very least pay a dividend and undertake a share buy-back. Its the least they can do if they can't find anything else to buy and should scare the shorters away.

IMHO/GLTA