The main issue to be resolved is a rail solution for Horizon 11. All the other chips are in place (Customers established, Resource at 499MT, Horizon 1 profitable, IO price good, Port allocation secured).
For the rail solution there is a big decision required regarding scale and also about who to JV with. AGO can only justify a rail line by going into partnership with other miners and/or a rail operator. Alternately they may link into some existing infrastructure such as FMG's via some form of JV.
I bought AGO partly because I felt the management had shown some good strategy and negotiation skills to get AGO to the current position , so hopefully can demonstrate more of the same regarding the rail solution.
AZJ rail study is very critical , although AZJ have other irons in the fire with due diligence on FMG rail assets.
Anyway, hope AGO can find a workable solution.
FT
AGO Price at posting:
$1.67 Sentiment: Hold Disclosure: Held
