IO spot up $30/t since 31 December. If sustained, that's $250-$300m extra EBITDA in CY 2013. But AGO is still below its 31 December price of $1.79.
In fact IO spot now $10/t higher than it was at its peak in April 2012 when AGO trading at $3. Since then AGO producing more tonnes and costs slightly down...
Of course the higher IO prices don't just lift near term EBIITDA they disproportionately increase the value of AGO's expansion options including for lower grade material...
It as if the flash crash in IO spot down below $90/t in September (which by way only dropped AGO to around $1.20) has completely spooked the market for time being.
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