Ann: Atlas Signs Royalty Relief Deed with State Government, page-9

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Fip80

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24/05/15

17:34

Post #: 15340625
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Originally posted by tomboy ↑

AGO now has historic deals in play to convert it to a no debt low cost producer:-
- WA Govt forgoes royalties & port fees reduced
- contractors agree to drop chares and take profit shares from trading profits
- shareholders agree to pump in another $180M cash
- board agrees to take its cash position from $130M to +$180M= $310M
- board shores up the balance sheet to cover ALL debtholders debt in full
- AF & FMG old boys come on board with large shareholdings at dirt cheap prices
- 3 mine sites back in production
- AISC drop to $50UST or less
- board custs costs drastically
- IOP holds at $60UST

All we need is for the AUS$ to drop on the back of reserve bank interest rates drop and IOP to stay above $60UST, hey presto a 25% profit margin and income and cash exceeds debt on the balance sheet.

A true turnaround story with LTHs not shafted to 1.5% like at MBN with a chance to get cheap appreciating shares at penny dreadful prices but with a SP spike on reopen. A CR at 8c would mean a 50% reduction on last traded SP of 12c but SP will return back to 20c-30c on reopen IMHO so LTHs still get 100% of their holdings back at a profit on last SP, incredible.

Dont you guys get it, every $1 of CR means $1 less debt, $1 better net balance sheet, $1 more liquidity, $1 more cash at bank, $1 more MC value, $1 more away from death and $1 more confidence in the AGO sentiment.

You have to take the CR shares to make a profit on them, the less you take the less you average down especially if you bought in at $3 then 62c and 33c & 15c like me. 12c-14c looks like the triple bottom now. AGO MC is more than $110M, if the CR is $180M then AGO MC on market metrics ought to be at a 25% profit margin, with 3B shares

50M/1B = 5c EPC x 10 = 50c or
cash to book x 4 = 33c

Its not going to be 12c for long. 12c is lower than liquidation value of ~30c. Its about the cash at bank & MC not the shares on issue now. The more CR the better.

I call for a standing ovation for the AGO Board & Flanagan at the EGM. They made the tough decisions finally to ensure AGOs relisting without shafting the LTHs.

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Is that you Ken?

AGO Price at posting: 12.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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Ann: Atlas Signs Royalty Relief Deed with State Government, page-9

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