Finally someone who calls out consolidation for what it was!!...

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Crabby33

707 Posts.

278

06/05/24

09:35

Post #: 73678420
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Originally posted by Gollada: ↑

I had a large holding and got out after selling it in loss. Had I not sold, I would have had to take a much bigger loss.

I was opposed to the consolidation and the mgmt lied about investors asking for an consolidation. I just couldn't get over the consolidation debacle. However, having said that, I will buy back when things change. Till then I am happy to wait on the sidelines.

There is no doubt we are sitting on high grade ore. There is no denying there might be a time when the iron price or the demand for green steel might make it feasible. But is the project feasible in the short term in its current state and the current global economic condition.

We desperately want MGT to go into production.
The management desperately wants MGT to go into production.
And SA Govt might also sincerely want MGT to go into production.

But it won't go into production until it is viable.

There are challenges around water, we know that and so do the investors. SPSMB water has half the salinity of Sea water, yet, how much will a desalination plant cost? What is it's impact on CAPEX?

Plus, the global economic condition hasn't changed much between 2023-2024. Inflation is still stubborn.

The SP might go up in the short term but will it stay there for long if we don't know what our final solution to the water issue is and how much more it is likely to cost us? is it big enough to keep the investors away? only time will tell.

Till then all the best to everyone. Hope jigsaw pieces fall into place soon.

DYOR

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Finally someone who calls out consolidation for what it was!! Dudson stuffed it up, now he has to rectify it

MGT Price at posting: 31.5¢ Sentiment: None Disclosure: Held
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1 Great analysis

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