ozbecool - AGOs total cost is around $80-90. Also, when the price of IO is $140/tonne then AGO gets a lot less due to lower grade. So be careful about stating profit margins etc.
I think it is time for AGO to consider delaying Horizon 2 expansion, bank the cash from future sales, do a share buy back on market, and double the dividend (at least for a couple of years). Maybe a deal with FMG on the railway will allow them to do both?? The use of cash to buy back shares so cheaply must be getting very appealing compared to investing it in future growth. It would also wake up the shorters to the fact that AGO can do something on behalf of their shareholders about their low share price. We have all admired the company for achieving everything they have without recourse to debt. Maybe now is the time to show the strength of AGO's position by fighting back.
AGO Price at posting:
86.0¢ Sentiment: Hold Disclosure: Held
