I agree with your analysis.
I have read a couple of analyst reports that have a fair value of 20c for MGX. They are attributing zero value to the mining assets based on a long run assumption of under US$40 for IO. The discount to net cash is attributed to contingent liabilities e.g. mine closure costs, cash erosion due to operating losses and the risk of a value destroying acquisition.
I think the catalyst for the share price to go higher will be a revision to long run forecasts for IO of US$45-55. If that happens, the share price could go to 30-40c.
Is there any risk in relation to the major customers who are also major shareholders?
I agree with your analysis. I have read a couple of analyst...
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Last
30.5¢ |
Change
0.010(3.39%) |
Mkt cap ! $365.5M | |||
| Open | High | Low | Value | Volume |
| 29.5¢ | 30.5¢ | 29.5¢ | $42.02K | 139.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 104867 | 30.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 30.5¢ | 355340 | 6 |
View Market Depth
| Last trade - 16.10pm 29/11/2024 (20 minute delay) ? |
| MGX (ASX) Chart |
