Hi
the report was posted for your reference not that i agree with it. It does however influence the money flow ST. I think the USD 46 that MGX state is referenced old the 62% fines so it does have the assumed premium built into the projections, but as stated in the conference call MGX are modelling a lower premium of 5% instead of the 11% being achieved now. It is fair to say that if IO 62% did average 35USD then a 10% premium may only give MGX a realised Fob price of 38 USD so below the break even stipulated by MGX of 46USD
in regard to the moat, its in reference ti barriers to entry. There are no market barriers to entry for IO so MGX is no moat, doesn't make it good or bad, just doesn't have the attributes of a TCL or SYD fro example where competition has huge marries to entry
MGX Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
