wth is going on?, page-286

The reason I would like to see the AGOOA over the line is.......

1. I hold a few so lets get my bias opinion out of the way.
2. $450M would fund a railway venture either solo or in a JV with a lithium producer like our mates Altura for example and then you have PLS in the same area.
3. AGO will drop its cost base to a low safe zone for if and when the IO price sinks to the market lows that right now would make it stop producing for a temporary period.
4. With a rail option into McPhee Creek 247Mtpa and perhaps later an extension into the larger 470Mtpa Davidson Creek Hub you will set up a low cost long life mine that will stay for years.
5. With rail AGO could still make say A$10/T profit off an expanded tonnage to 25Mtpa and make $250M/year which would easily service a $0.5-1Bn railway venture debt.

Obviously that would happen in 2yrs+ from now but would at long last the AGO business initiative would finally become reality and secure the business. Anyone who thinks the IO price will actually go down this year or next to something like A$60-70 is not being serious. US$50/T at current exchange rates is still A$62 which has Coruna even making enough money to survive the drought.

India and the US infrastructure will soak up the extra world wide supply imo and Chinese mines are simply too expensive to re-open in any real time frame.

Anyone who's been in the thick of it with business knows you trade your way out of debt and move onto to bigger things by borrowing at conservative but measured incremental steps. With the lessons learnt recently AGO is a seriously lean operation considering its using trucking for transport. Just need to keep a tight hold on those reigns and make sure that belt stays super tight.