No one is debating the fact that giving 25% of the profit to contractors is not optimal, but lets face it, if it wasn't for this agreement than Atlas Iron would not exist.
As Frader noted, 75% of $60 od mil a quarter is better then 100% of $0 per quarter.
The contractors are being rewarded for their faith in the company's rebound. I would also expect this agreement to be re-negotiated by the MD as soon as practical.
AGO Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
