Not sure what you’ve taken issue with. I never said MGX shouldn’t buy anything. I said they don’t have any special advantage. A company trying to sell a mine is naturally not going to be pumping capital in to that mine even though it might need it and some things could be on their last legs – for example, drilling it to find ore, replacing pumps, crushers, waste dumps, tailing pond expansions, new airstrips, pushbacks, etc. That’s true of any business or home owner. You give it a lick of paint, but that’s about it. There is risk that after buying a mine MGX would announce it needs another $100 million in capex that they didn’t foresee. This risk is always there but it is probably much worse at the moment because most mining companies in are conserving cash balances, so they are doubly likely not spending on a mine. If you buy a used car from someone who is broke I bet they weren’t keeping it maintained. There are many wealthy non mining groups out there. A Canadian pension fund just bought some glencore assets for a few billion. Chances are yesterday you and I didn’t know that pension fund existed or had a few billion to spare. Canada is small. That was just 1 pension fund with a few billion in the pocket. There are many funds and many investors out there looking for a good deal. It’s not just mining companies looking to buy mines. MGX are in a good position to buy up WA iron assets in and around their current operations relative to others because of some synergies, but I don’t they are in any kind of prime position to be picking up mines elsewhere. What makes them any more likely to buy MCR or Glencores copper assets than a firm from Britain? Where they have an edge over non-miners is with non-operating mines and deposits.
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Not sure what you’ve taken issue with. I never said MGX...
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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($) | Vol. | No. |
---|---|---|
30.5¢ | 355340 | 6 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 37120 | 0.920 |
3 | 45770 | 0.915 |
3 | 31253 | 0.910 |
3 | 68342 | 0.905 |
2 | 44392 | 0.900 |
Price($) | Vol. | No. |
---|---|---|
0.925 | 15328 | 2 |
0.930 | 89494 | 6 |
0.935 | 70442 | 3 |
0.940 | 72592 | 7 |
0.945 | 128342 | 5 |
Last trade - 16.10pm 29/11/2024 (20 minute delay) ? |
MGX (ASX) Chart |