The Magnum Mining and Exploration Ltd. (ASX: MGU) share price is in reverse during late afternoon trade. This comes despite the company providing a positive update to the market on its operations.
At the time of writing, the mineral miner's shares are fetching 15 cents, down 9.09%.
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Magnum operations fast-tracked
Investors are hitting the sell button on Magnum shares following the company's update and amid a broader sell-off on the ASX today.
In its announcement, Magnum provided a number of updates regarding the progress of its "shovel ready" magnetite project in Nevada, United States.
The first piece of news related to the relocation of the company's managing director, Mr Dano Chan, to Nevada from this week. The move will allow Mr Chan to oversee the project's development and aligns with Magnum's efforts to speed up works onsite.
Magnum also stated that it's currently in talks with port authorities in the United States. It is working with contractors and logistics firms to fast-track its first iron ore shipments to international markets.
In addition, the company plans to open an office in Salt Lake City at the end of this month. Discussions with several tier-1 steel mills are taking place along with commodity buyers for the purchase of its iron ore.
Lastly, Magnum noted it is sending a second set of iron ore samples for lab testing. It hopes that it will be able to finalise a design and determine costings for producing hot briquetted iron (HBI) and pig iron.
Judging by today's Magnum share price action, investors are not overly excited by the company's updates.
Magnum managing director Dano Chan commented:
We are initially focusing on mining the high-grade pods which allow Magnum to start generating cash flow quickly and accelerate the development, size and scale of the mine to take advantage of the record iron ore prices.
We expect this fast-track DSO strategy to bring value to our shareholders, limit shareholder dilution and also help fund the expansion of the mine and growth plans for future HBI Green Steel product.
Magnum share price review
A strong 12 months hyped up by positive investor sentiment has led the Magnum share price to jump by over 260%. Year to date performance is just as impressive, with Magnum shares posting gains of more than 170%.
Based on valuation metrics, Magnum commands a market capitalisation of around $76 million, with approximately 465 million shares outstanding.
