You have to realise that its not the quantitiy of the ore that counts in the Pilabara, its the ore that you can put on a ship and sell THATS what counts.
We can all be in dreamland with huge iron ore deposits under our belt, but if you can not get it to port you have Nothing.
UMC found that out and gave the game up early and got gobbled up by BHP for a very cheap price.
AGO is NOW producing and putting iron ore on ships and making a lot of money with the current high prices.
You have to make hay when the sun shines and AGO is doing this.
BRM is hoping to start putting iron ore on ships in 3 years time, by that time at current production AGO would have probably close to $1 billion in profits on its iron ore sales.
BRM will still need to find a rail solution and will have to pay for that, if they manage to pull it off. The majors will NOT let it go easy we as AGO shareholders know this very well.
What is most important for AGO is to get iron ore on ships asap as they have enough ore right now to deliver for the next 10 years or so.
And it does not take much for AGO to extend these resources as they right there in the the middle of the best place regarding finding iron ore, The Pilabara.
Last but not least David Flanagan is very good of getting hold of those things that are still missing in the big picture, like he did with Aurox.
If needed there are still the likes like GIR out there who have the iron ore, but no idea how to get it on a ship.
I see a very bright future for AGO and us shareholders ahead, and imho it will not take much to get this baby over the $3 mark with some large buyers pushing the bots aside.
good luck with BMR but if you want instant cash , you may have to have another look at AGO.
Remember you have to make hay while the sun shines.
jojo
AGO Price at posting:
$2.56 Sentiment: LT Buy Disclosure: Held
