At this price it's a genuine net-net at 67% of the cash. As...

At this price it's a genuine net-net at 67% of the cash.
As @Autosime says it's value depends on the iron ore price - presentlythe shareprice assumes operating losses will consume the cash balance.
The reason this is appalling is because situations like this should not exist - in theory the directors of a company have a fiduciary duty to shareholders. We know they prefer to feather their own nests.
So on paper it's worth more, to a controlling shareholder it's worth more because they could extract the cash and shut the business.
Now we get to Iron Ore - there's been absolute carnage in this sector through speculative overinvestment. The so-called super cycle as it was.
I just don't know about what the price of Iron Ore should be so I can't have a position on MGX. Given the cash position it's worth buying a few.
We can't go into iron ore without talking Chinese demand, I think that the Chinese economy is a massive debt explosion waiting to happen. It's been like that since 2009.
The solution to too much debt can't be always adding debt.
So both supply and demand are potentially a concern.
The solution in a rational market would be to shut in higher cost production.
The big guys RIO and BHP ditched Koolan Island a long time ago and focussed on increasing production from cheaper reserves. Which they did with a savage vengance.
To conclude I think the I/O market needs to rebalance; the directors of MGX should be winding down the company not re-opening mines but to a man with a hammer every problem is a nail.
It's probably a good buy at this price but I don't understand it well enough.