Falling RevenueA c.24% revenue decline materially reduces scale and weakens fixed-cost absorption, pressuring unit margins. Persistent top-line contraction undermines profitability recovery, limits reinvestment capacity, and heightens sensitivity to iron-ore price and volume fluctuations over the medium term.
Negative Profitability/MarginsSustained negative EBIT and net margins indicate MGX is not covering operating or production costs at current volumes/prices. Persistent margin erosion reduces retained earnings, constrains strategic investment, and increases vulnerability to prolonged commodity downturns.
Declining Free Cash FlowA marked fall in free cash flow limits the company's ability to fund sustaining capex, pay down debt or return capital. Reduced FCF narrows strategic options, may force external financing or asset sales in stress, and weakens the cushion against cyclical industry shocks.