Judging by the WA government very modest 2015 average IO price of $US 75 (who owns the resource and previously threatened BHP and RIO with royalty hike, the latter smartly abruptly canned the massive and highly anticiptaed SilverGrass IO mine development - both BHP/RIO despite jaw boning about organic 2015 production growth are instead almost certain to hold if NOT outright curtail IO production - just as China with depleted inventory starts restocking on high volume and ramp up imports for the massive $US 1.1 trillion 2015-2016 infrastructure stimulus) and another RBA rate cut (already flagged by Hockey yesterday) to around $US0.73, then AGO could easily be making $200M EBITA this calendar year at 13.5 MTA
The $US75 WA governemnt forecast would be conservative given we are staring at an imminent regime change of the GREENS and LABOR back in power and RSPT MKII not far away.
AGO Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
