All in opinion:
Doubters of AGOs survival have most likely missed out on a long cheap accumulation opportunity over the last year. Those not seeing its tenement diversication potential, its clever IO hedging de-risking to battle against temporary ST IO lows, its debt payments, cash building, IO lump product, Ridley's high quality IO potential and now it's solid Lithium JV with PLS utilising AGOs existing infrastructure, transport and port facilities have missed the opportunity to accumulate under and into a cent. Wave goodbye as the SP slowly lifts off to a future billion dollar company and beyond.
LT holders who bought while shorters exhausted their presence in commodities from a 2011- early 2016 bear market have now witnessed a LT IO bottom and LT cyclic shift into a bull market at the beginning of 2016 in the early stages. Technically IO is still in an early upward LT trend while IO demand fundamentals globally improves as momentum builds into a 4-5 year commodity bull run. The big winners will be those who followed LT cyclic commodity markets and have capitalised early before the late comers hop on board the AGO express as it moves to 5c, 10c, 20c and beyond over the next few years.
Upside drivers for Aussie miners
1. IO Supply Peaking
As big mines move to end of life, big miners will take years to ramp up new supply for big projects. This is now a positive driver for IO prices rather than a negative argument. Emphasis is now on profits, return on investment and dividends for investors NOT oversupply.
2. IO Demand Increasing, Lithium demand increasing
IO
Chinas demand is still strong with OBOR and continued urbanisation and has been growing off a bigger base each year. No surprise. India in early stages of ramping up its 120 smart cities remincient of early China development, housing for all and massive infrastructure initiatives to last more than a decade (China Mach 2). SEA growing strongly. US rebuilding to be great again
. Europe and general global economy recovering from GFC blues.
Lithium
Basically as demand builds for battery powered cleaner energy across the globe, there won't be enough supply of lithium coming online in time for building global demand. Do the math. AGO is in a perfect position to capitalise on this opportunity as it explores its tenements and adds value for investors. $$$$
3. IO LT Technicals
IO price in LT upward trend since LT commodity bear market ended in Feb 2016 and begun its bull market cycle. These LT cycles run over many years. ST traders can have their ST profits into a LT upward trend however the LT trend says it all right now. Have a look from 2011 to now to slow the full length of the exhausted bear market, the bottom, the LT cyclic turn and now. LT its UP CLEARLY and in EARLY trend. We have years to run yet and fundamentals have aligned brilliantly in my eyes for what is about to happen in the commodity investment space.
4. Other sectors peaking and finding value in commodities.
Cryptos and coins (You know those coins even better than the last coiny coin). You may as well rub for a genie in hope for returns as it continues to meltdown and mum and dad investors will unfortunately find out the hard way how futures move markets. 40% of value down in a week? Writing on the wall in this space and far too risky in my eyes. Once they ponder their devalued bitcoin investment and decide on what to do with their remaining investment, where's value right now? Commodities? Yep.
Tech stocks in US
I see future downside with tech stocks which have had more than enough upside over many years in my eyes remincient of the last run up before the last tech bubble. Will US tax changes impact tech companies? As Trump fires up infrastructure policies, money in opinion will flow into commodities which will be like wind in our sails for world leading Aussie miners. We ain't nothing yet with regards to commodity investment resurgence.
Banks, Rates and Debt for Aussies.
Debt for some, but no debt potentially for AGO by mid 2018. Since AGO by mid year will be debt free potentially before some bigger miners and earning handsomely, AGO will be able to utilise it's excess cash to full potential not repeating past mistakes. My bet is AGO will strengthen its diversication earnings and ramp up exploration as it has 9000 sq meters of land to drill in the rich Pilbura lands. Frankly that's bloody awesome and peers should be drooling over the exploration potential and port proximity of Atlas within the Pilbura.
Debt for Aussies will become more expensive as housing bubble peaks forcing mum and dad property portfolios to consolidate. Cash sitting on sidelines will find value in Aussie stocks for capital returns especially miners who will be money making profit machines.
Perfect storm for commodities and AGO right now is the perfect vehicle for significant upside returns for investors. Good luck holders. Thanks
@rcman,
@BlueSkies1711 (Thanks for homeage
),
@Richie2013,
@col69,
@defabs, @Cupcakes,
@mypravda,
@Haplo,
@mattdamon @jackrex71,
@spuza12,
@Troydt, @NTMan,
@Timetotrade,
@eyeswideopen,
@mechanic,
@Greywolf @shareboy,
@oilkely,
@Jmax88 and anyone I missed for all your contributing analysis and opinions for AGO
I sincerely respect all your views and enjoy holding along side you all. Happy new year all and happy investing.
