ago has great management? , page-14

Nicolee, I generally fnd your posts fairly balanced and open mined, but occiasionally contrarian, which is by no menas a crime. As a holder I want to see it go north, but don't mind people of opposite views.

I don't think however "Lets see if they produce and ship 1 tonne this year" as you brightest post.Do you really think they will jsut shut down completely.

As for sale of Iron. Most 'junior' mining co's are still getting offtake agreements, sales etc. Thus people buy things cheaper, they dont stop buying all together.

As is quite clear from BHP/RIO in the press etc, Iron prices are only likely to come down 20-30% from last rounds all time high. Therefore if Price of Iron is C1+30% still, AGO should be cash flow positive.

Your sums ignored interest from the 80m of money in the bank. if you add interest and sales, and take off production and admin, they are running positive (exploration costs left out).

Having spent approx 24m last quater on exploration and development, and 80m still in the bank, this suggests they can fully explore and develop for the next year before they need money from sales or capital raising. but i'm sure they will still get sales.

Looking at the bigger picture, an Iron co with loads of deposits, no debt, and timing to swing into full production by 2011/12, when hopefully China and the world get back to strong growth, and therefore retained strong iron prices, the upside potentialis huge.

I agree times are tough, and there are risks, but AGO have too much in the ground and no debt, we should not be asking ourselves survival questions for at least another year, when (if) cash is burned.

As I said I like your posts, and do not agree with nuerotic one sided upramping, just look at the CMR board to see where that gets you.

But, realisticly, I hope you can agree AGO should have a bright future, pending any major downturn in Iron prices.

To other board memebers, I suggest you take contrarian views as a time to think and double check you risk profile and tolerances etc. We may be happily laughing with triple baggers in a year. But never lose sight of how many people are getting wiped out ATM with false hopes.

Not suggesting AGO is a company to have false hopes with, but check the CMR board to see where optimism can sometimes lead...

The key lesson from that board is that C1 needs to be well below spot price if there's no money in the bank. At least AGO have that insurance policy, thus why I am a supporter.