Being saying that for months.
Very intricately worded presentation that one.
The new blend was spun as a saviour because they had "shipped"a sample to a "client". What size was the sample . A bucket or 1000t they did not say. Just spin. Cost to implement. Nothing. Viable? Nothing. Interruption to production? Nothing. Coming online when? Nothing
Hedging costs money to get in and out. They never reveal this. But they lost on last two quarters. Failed.
Would only be fixed cost on shipping if they could separate for voyage and send to same destination. Trucking costs would be apportioned per location and contract. Separate costs. Again no info from them just spin.
I have said 58%IO is now a stand alone defined market separating daily from any 62% price influence. The Chinese will buy 58% again when they have forced the market to separate and "the new norm"is rock bottom 58%IO. The big factor in this is AGO cannot last that long. The cash they are bleeding will rapidly force them under the min COH required at COB each quarter. And bang you have a default on loan agreement. Big messy problem then.
As for the port they lease it so at a stroke of a pen it can be taken away. No value on that.
Agree there is some value in the IO and magnetite deposits. The IO market just dictates there is little value at present. Another day maybe.
The gold, lithium, copper, sand, fairy dust etc. that "there are indication may be on their tenements" is speculative and not proved up so how can you expect to get top dollar for these? Would you buy a rainbow because you think there is a pot of gold at the end of it? (Judging buy some comments over the last few days some of you would.)
The one off trucking deals they have done (oh sorry JV diversification lol) will not hit the ledger for 60 to 120 days. All over by then.
The market is full of risks, mistruths, tactics, lies, agendas and so and so on. But understanding that you risk only what you can afford to loose is the fundamental key. Making money is a bonus not a god given right as some believe it is.
Wait for the quarterly to come out and I am positive the answer why the MD folded will be in that.
But hey I am just a down ramper and troll so what do I know. GLTA
AGO Price at posting:
2.8¢ Sentiment: None Disclosure: Not Held
