well i am torn with this one we need IO lower grade discount to...

well i am torn with this one
we need IO lower grade discount to narrow so while MGX move ahead with KI , cash continues to grow. it would also be a big plus if BI settlement happens before KI commences
The cash flow of KI is back loaded with the peak cash call of 145m and the last 18 months providing alot the surplus cash flow. That means we won't see the dollars until 2021-22. so in the interim what will excite the market and me is an increase the price paid for the 59% grade, and a use of the some of the 450m into something other than IO
It is cheap but for the next 1-2 years cash flow from IH will be marginal on current prices. The realised FOB price was 46 USD, last week 58% fines were fetching 37 USD FOB , not much of margin and very close to break even, Now 59-60% would be closer to 41 USD but eve that is a slim margin. On the current plan, MGX will continue to trade at a discount to cash imo .