Ann: Header Correction - Atlas on track for 10Mtp, page-14

re: Ann: Header Correction - Atlas on track f... Domster,

I agree with you 100% and that's why I've recently entered AGO as a long position. Higher perceived risk offers higher potential returns if the risk eventually proves to be unfounded or in reality impacts less than anticipated.

I do think though it's very important to acknowledge those risks, it seems like most investors are willing to put the blinkers on and say things like "I can't understand why the SP hasn't rebounded with the price of iron ore".

There is a very real potential for that credit facility to hurt the SP especially in the short - medium term.

I'm a little worried that if AGO get very aggressive with their expansion plans they may draw down on that credit facility and Mr Market will not like that at all. In fact I predict that if they draw it down to around $100 million or more the SP could end up below $1.00 purely based on the fear factor associated with debt in the current market.