Has No one seen the Morningstar coverage on AQA (17th Jan 2013) ???
Their largerst potential asset, the WPIOP is a joke. By the time this project even commences cost escalation is very likely to exceed 7.4 billion and operating will be > $24 / tonne.
And whilst $24 a tonne sounds like a low cost producer, lets not foget the MASSIVE debt that will need to be serviced.
So lets consider selling the project and potential value (as implied by Morningstar). Who would want to buy into a JV with such litigous partners - No one ! Who would want to buy into or purchase outright a project requiring such a massive capital investment at the peak of the iron ore pricing and with on-going uncertainty over they key ingredient - Anketell Point. No one I can think of ...
Get out with your money now i say ....
AQA Price at posting:
$2.55 Sentiment: Sell Disclosure: Not Held
