If Grange and Mt Gibson merged I doubt they would need to raise...

If Grange and Mt Gibson merged I doubt they would need to raise much money at all - GRR $200 million plus MGX circa $400+ million would go a long way to funding their 70% share.

Combined earnings going forward over the next 3-5 years would be enough to fund the shortfall.

I can't believe MGX hasn't made an offer for Grange - they're a natural fit in my view.

Also worth noting that its been pretty dry at Savage River for the last couple of months so I'm hoping that stockpiles have recovered well.

The current pellet price in AUD is around $190 - subtract $20 for freight and they should still be making around $70 tonne (assuming $100 cost per tonne) or circa $140 million a year in operating cash flow if they sell 2 million tonnes which is a conservative run rate weather permitting.

If you discount that by 50% that still leaves a profit of $70million or about 6 cents a share which is a return of around 6 cents a share or 30% based on a purchase price of 20 cents.

Great value given mine life is at least another decade.

GLTA/IMHO