a no brainer with these iron ore prices

Hi guys,

We have only seen the very beginning of a long growth process regarding AGO.

And with the current high iron ore prices this company is a no brainer imho.

Remember they are planning to export 6 million tonnes of iron ore by the end of 2010.

That will be around $720 million in revenues

By 2012 they have targeted export of 12 million tonnes.

That will be around $1.4 BILLION in revenue!!

Cost will be around $45 to $50 per tonnes according to AGO management and I used a Iron ore price of $120 per tonnes.

You see these numbers are serious money!!

The Ridley deposit is now a bit of a guess with Balla Balla in the picture.

Maybe a possible combined sale of the two could stall the current negotiations.
And the fact that the merger has not been completed yet does not help this.

Time will tell but we have to remember we have Flanagan on the steering wheel and he is a good deal maker.

So far they have delivered on their promises and I do not think that we have reason to believe that they will not do so in the future.

Todays price is still very cheap, if we look at all this revenue that AGO will generate in the future.

This company has a Mcap of around $1.2 billion so far Revenues will in two years time outdo the Mcap of this whole company.

And I have not looked at the cash in the bank, neither to the $$$ coming from the Ridley deal.

I can see the share price going much higher as time goes on and as long as AGO keeps delivering on its promises.

But as always some BIG boys need their fill first before the real take-off is going to take place.

Good luck to all

jojo