AGO has always been the most leveraged company to the Iron Ore price.
If you believe that the Iron Ore price will bounce at some stage
it is a good bet.
If you believe Goldman Sachs, UBS and Co. then Iron Ore and AGO are
a particularly bad bet.
One thing to consider is all these analyst have form for getting it
dramatically wrong with the Iron Ore price.
IMO it is almost an impossible call to predict long term Iron Ore, there
are just too many variables.
Tom Price from UBS had Iron Ore sinking to US $70/dmt in September 2013.
Almost every news report leading up to September 2013 was quoting his dier forecast.
The price kept rising and ended up at $154/dmt AUD in early December.
I wouldn't sign the deaf notice for AGO just yet!
Good Luck today AGOites.
AGO Price at posting:
21.0¢ Sentiment: None Disclosure: Not Held