If you plug US90/t for 62% iron ore into the Koolan Island...

If you plug US90/t for 62% iron ore into the Koolan Island numbers MGX announced (and assume 0.75 AUD/USD), it looks like the NPV jumps to about $530m.

Using their announced cash operating costs and volumes for the 4 years of Koolan Island, free cash at US90/t price level looks like $120m in Year 1, $198m in Year 2, $475m in Year 3 and $210m in Year 4 - about $1bn pre-tax in total over 4 years!

Just some interesting numbers to contemplate if indeed we are seeing a new sustained commodity cycle. There is an interesting article on this aspect in today's AFR which highlights the global upswing in growth combining with uneconomic and environmentally unsustainable supply being shut down over the past few years, making the 2010 to 2015 iron ore capacity investments of BHP, Rio, etc now look very sound and well timed. A few good years of iron ore prices from 2019 would also work magic on the MGX share price - even ignoring what else they may be able to achieve when they find an investment for their cash pile.

The above are my very rough back of the envelopes only!! DYOR and GLTA.