In opinion:
Some figures and points off the top of my head.
*Current MC*
With current Takeover bid Gina has offered 380 million @ 4.2 cents.
*Combined holdings*
Following the takeover Hancock effort, let's assume Gina, Twiggy combined have under 50% which roughly cost each $90 million each for a significant seat at the table. Great place to be with two mining legends owning a large chunk with positive intentions for existing workforce and industry.
*Tighter register with strategic investors*
Now let's also assume after this current TO bid expires which provided the last of the trading quick money makers an exit, we now have a tighter register with LT strategic holders remaining.
This in my opinion means opportunity to capitalise with a JV and reset of the AGO register consolidation of shares and sets the foundation into the future to make AGOs potential work for remaining holders with profits.
*Rail Access is a possibility to cut costs and provide profits*
Potential for Rail access to cut AGOs costs to ensure survival of business.
IF FMG did what we all expect and provide AGO access to rail, AGOs costs could drop significantly by $
10-20 per tonne. That's potentially an extra 200+ million annually in profit. So potentially FMG and Gina would see value in their investment 1 year after such a JV deal to lower costs would materialise. The rest is free carry going forward. $$$$$$$$
*Ridley"
1 billion tonnes of High Grade 75 Kms from port with decades of mine life. It's as simple as that.
A JV with combined funding from parties can make it easily happen which would put low grade production on ice and bring transport costs down significantly using port given its 75kms to port. That's buggar all distance! It seems FMG is focusing on high grade and I'm sure Gina would love to ship high grade AGO Ridley ore out. The potential is there folks. Massive potential and massive future profits.
*Port Access*
If FMG JVed with AGO, AGO could optimise it's IO output at port. With its costs significantly reduced, it's NWI negotiation could provide the necessary backing to extend port in the future and possibly open up opportunities as it potentially diversifies in Lithium etc.
*Jobs are crucial*
The way I see it is after the mining crash, jobs were critical to its optimisation driving costs down. Now as the industry recovers and exploration grows as mines go end of life jobs are popping up again. The mining industry could have a supply shortage which means AGOs work force is a bloody goldmine. It's an absolute necessity to maintain its working capacity. More of a reason to make it work or merge workforces together rather than see AGO fail. In my eyes it would be an epic failure if AGO didn't continue in some way or form with opportunities to lower costs and build profits and would NOT look good for Australian industry. We now have 2 leading mining billionaires taking significant position. There is no excuse to not make AGO work and my belief significant shareholders are here for good intentions. They're Aussie visionaries and doers. It's in their DNA to build, grow and profit for Australias future. AGO is part of that future for us all.
*Lithium*
We're all waiting for drilling to begin on Cisco and Pancho. $$$$ Upside is potentially massive and large partners can share AGOs rich tenement and diversication potential. The upside to the SP could be fantastic as drilling commences.
*Tax benefits.*
The past losses carried forward could really help as a JVed AGO (with lower costs) is raking in serious money.
*Summary*
There is far too many reasons to realise AGOs potential to multibag rather than sit and do nothing. The IO price is on the charge again within LT trend. Commodities over the next few years will trump many sectors currently in emerging bear markets. It's history clearly repeating as Rates, inflation and debt rises. Miners be profiting hugely. AGO could very quickly pay down debt with a JV.
Why would you sit on a
20-25 percent holding and do nothing to seal a potential ground breaking deal for Australias mining future? People want to make money and profit into a commodity rebound plan and simple. Aussies want to Australia industry to succeed.
Come on FMG, make an offer which provides enormous profit potential, exploration upside, tax benefits, land extension and port access.
Scrip at around 6 cents and I'm on board for the exciting ride.
FMG would be silly not to bring AGO holders into a scrip. Many are LT strategic, passionate mining investors. AGO is a diamond in the rough. With the right backing it could be a sharing profit machine as part of an Aussie mining powerhouse for Australias future.
