MGX Discount to cash, page-95

I would think, given the original seawall collapse, that the market will not respond to MGX and KI until the engineering (construction) risk disappears, and mining restarts with no issues.

Without an acquisition or diversification, MGX is essentially a 'one trick pony' now, relying heavily on KI for its future. The cash balance is a safety net, which will come more sharply into focus as to the boards intentions, once KI mining commences.

The rerating by the market will come, but we certainly need more updates regarding progress at KI, We should receive one in the next few weeks in the form of MGX's Quarterly Report. Mine extension drilling results may also be available and detailed.

However, imo, until KI starts mining for 64-65% FE, the market will continue to view MGX as high risk.
FWIW, i'm happy to hold and continue to buy on any dips.

One thing is certain - China is continuing its focus on high grade ore and KI will, once operational, attract a premium of at least 15-20% above the platts 62% fe price. Do some numbers around the current io price and you will see why the board made the KI decision.

GLTAH for a stellar 2018.