I have enclosed some of the company reports so you can have a better idea
of the figures and what they mean!
The only thing I would add to them is D&A in AGO case is a very real cost.
Some of it could almost be construed as production costs!
A simple way of explaining the bulk of it is if you were to buy $100 worth of chairs and sell
them all for $50 it has cost you $50! Chairs or in AGO's case mines that will
never be able to be used again!
AGO D&A FY14
MGX produces a little less IO than AGO but its cost and revenue are very similar.
It has a Market Cap of $485 Mill yet it has over $500 Mill in cash in the bank!
The market values MGX's production at less than zero!
AGO has a net debt of over $100Mill!
If it didn't have the Port access it would be in a lot of trouble right now.
However following on from the Aquila resources take over, there is a real prospect of
AGO getting a premium take over offer, especially if the IO price continues to rise!
Putting it another way, would any body be surprised if AGO got taken over for over $1?
I don't think so!
Would any body be surprised if ARI or MGX got taken over for over $1 in the near term?
I would!
SO IMO as long as the IO price keeps rising from here AGO is a very good bet!
Good Luck tomorrow!
AGO Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
