Well I got AGO wrong. You probably don’t really care why but I will bore you with it anyway for my benefit. As you know it’s SP depends on the IO price. It makes 56% Fe which normally sells at an approximately 10-15% discount. So according to my calculations as long as IO stayed above US$50 it would have been all good. The variables were IO price, 56% discount and US AUD exchange rate. Well the exchange rate stayed ok, the IO price was good and stayed above $60US, but the discount rate increased significantly to around 35%, because lower grade Fe causes more pollution and China are cracking down on that (hence the EV boom). And that discount killed the profits big time. Assuming IO doesn’t fall any further it will survive, but it will take a long time to do anything good, and I don’t want to wait that long. If IO falls to 50, it’s in trouble. It might get a lift with lithium mining from PLS, but I have enough PLS.... Anyway it’s gone and I feel pretty good about it. I have evolved obviously. One less delinquent to worry about.
Don’t get too excited about what will take its place because that money is earmarked for boring dividend paying stocks or notes. Not enough of my portfolio, as a percentage, pays dividends and I feel obliged to address that somewhat. Not sure what it will be yet. NAB unfortunately held up rather well. Damn those banks.
Glad to see you are enjoying the Rock relationship. Who doesn’t like regular payments? That is what I am trying to do with my MME. Getting there.
TCL approaching 13. Hmmmm. Should I take some profits. I took some on P*S, but don’t tell anyone. I could then spend them on a wounded stock. As opposed to BIG and A2M, though I am not sure the A2M sell off has finished by a long shot.
