So Cheap, page-97

Please explain how this could possibly jump back to 4c?
- Iron ore 62% sitting around $65USD. With little indication of where it might end up.
- Futures markets up and down.
- Political disturbances. (Trump vs North Kore)

Let's say as a best case scenario the discount on the realised price is reduced and we see similar to this last quarter. Maybe $62AUD/wmt. Given the IO price remains at current levels. One could argue that demand is picking up and the price is sure to rise again. What does that matter? We saw last time that even at $90USD the realised price won't increase that much. All that happens is a greater percentage discount is applied.
So I can't see AGO ever realising more than $68-70AUD in the current and close future market. Assuming ALL the stars align.


Management stated that all in cash costs are likely to rise due to various causes, possibly $55-56AUd/wmt. With no known strategy to combat this rising cost.

Taking this into account. AGO has a profit range of between $6-12/wmt. (Best scenario)
Per quarter. Assume a generous ammount 4mt. Profit: $24-48 million

With all my heart I hope this to be true. But I see it more likely that AGO receive a realised price of just about $60AUD or less and run dangerously close to not making a profit.

Just my opinion. DYOR
Would love to hear what price AGO will receive for their IO.