It needs to have a cash buffer to cover losses until it can return to earning a real profit. Currently they can not earn cash because all-in costs are at about the same level as all in revenue.
It's got 2 options as it's current cash reserve dwindles:
Debt - but it might have trouble since it already has high debt levels and it carries an interest charge. And existing debt holders might be a bit reluctant.
Equity - a placement to a white knight willing to pump in money hoping the iron ore price and share price improve. This would dilute existing shareholders.
AGO Price at posting:
17.5¢ Sentiment: None Disclosure: Not Held
