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When 65% iron was $105/t the SP was $1.05
Now 65% iron is $125/t and the SP is $1.05

12 months ago a $1 move in the iron price (62% @ $55/t) equated to a $20m increase in the NPV. That roughly takes this mine to about an NPV of 1.25 billion as of a year ago - so now - with capex already spent, and a year less to discount - that gives me somewhere in the range of 1.7-1.9 billion in cash+NPV for the value of MGX (market cap is 1.2 billion). Likely iron won't stay at these levels for another 5 years, but even at $1.05 this is very undervalued. I still hold about 85% of my original shares. Won't sell anymore until this gets to the $1.40 range.

Another upside is that I recall that the reserves/resource was about 25 million tonnes before the wall collapse - it's only 21 million now - Will that 4 million tonnes from before now make its way in to the mix?

<blockquote data-quote="The Triangle" data-source="post: 1031251" data-attributes="member: 66908">When 65% iron was $105/t the SP was $1.05Now 65% iron is $125/t and the SP is $1.0512 months ago a $1 move in the iron price (62% @ $55/t) equated to a $20m increase in the NPV.&nbsp;&nbsp; That roughly takes this mine to about an NPV of 1.25 billion as of a year ago - so now - with capex already spent, and a year less to discount - that gives me somewhere in the range of 1.7-1.9 billion in cash+NPV for the value of MGX (market cap is 1.2 billion).&nbsp; Likely iron won&#039;t stay at these levels for another 5 years, but even at $1.05 this is very undervalued.&nbsp;&nbsp; I still hold about 85% of my original shares.&nbsp; Won&#039;t sell anymore until this gets to the $1.40 range.Another upside is that I recall that the reserves/resource was about 25 million tonnes before the wall collapse - it&#039;s only 21 million now - Will that 4 million tonnes from before now make its way in to the mix?</blockquote>

[QUOTE="The Triangle, post: 1031251, member: 66908"] When 65% iron was $105/t the SP was $1.05 Now 65% iron is $125/t and the SP is $1.05 12 months ago a $1 move in the iron price (62% @ $55/t) equated to a $20m increase in the NPV. That roughly takes this mine to about an NPV of 1.25 billion as of a year ago - so now - with capex already spent, and a year less to discount - that gives me somewhere in the range of 1.7-1.9 billion in cash+NPV for the value of MGX (market cap is 1.2 billion). Likely iron won't stay at these levels for another 5 years, but even at $1.05 this is very undervalued. I still hold about 85% of my original shares. Won't sell anymore until this gets to the $1.40 range. Another upside is that I recall that the reserves/resource was about 25 million tonnes before the wall collapse - it's only 21 million now - Will that 4 million tonnes from before now make its way in to the mix? [/QUOTE]

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