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badhan

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10/11/17

14:15

Post #: 28685532
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Originally posted by shareboy ↑

When will it turn for the better? That's the million dollar question. Lets see what we have going for us and against us.........

For;
Great people. They are Atlas` biggest asset IMO. Great fighters.
World Class tenements with large reserves.
Port Access any Junior would kill for.
Potential for Lithium, Gold, Copper, Mineral Sands etc etc.

Against;
The Debt. (We can`t make any sizeable decisions without consulting the likes of Glencore)
The cost of getting Ore to Port (Our mines are getting further away)
The widening discount for fines
The current Iron Ore price. (Out of our control)

Yes, If Iron Ore is north of US$80 per ton, then that erases a lot of the down side, but that's out of our control. Costs have been driven down as much as possible, in fact expect them to go up if CD goes ahead. We are at the crossroads IMO of wether we keep fighting on to make Iron Ore work for us or look to other avenues such as Lithium. Dangerous times as we have the debt hamstringing us.

If we are to get serious about Iron ore we really need to see about getting the costs down. Yes, I`ll probably get shot down for saying it again, we need rail. In the latter part of Kens management he came up with a plan of a hub. This was a great idea, a central hub that would tie in with a rail solution. Basically instead of trucking ore some 300 k`s to port it would be trucked like 30 k`s to the hub. Lumps could be piled up separate to fines. Low Grade fines could be blended with higher grade fines to raise the grade. If Cliffs not savvy enough to strike up a rail deal with FMG or ROY HILL then perhaps we should be teaming up with MGX who have the cash to build a rail. Failing that, we might as well stick a for sale sign up and give the company away to FMG for .075c per share.

Before any deals like this were to occur we need to get rid of the debt! Get the monkey off our backs. We will soon see deals evolve and it may just be that we do have a good M.D instead of the way he is looking now. We are in a net cash position now. What`s the point of say getting 3% interest on 100 million when we are paying around 8% interest on 100 million we owe? (rough figures) Once this quarters done and dusted we could see another 15 million+ in the coffers (as I correctly predicted last quarter). Surely this is enough to use as working capital. Exhaust the ore closest to town (I.E cleaning up the crumbs as Cliff has stated) and before you know it we have options. Other Companys would want to deal with us, investors start climbing aboard and it`s back to blue skies. Down the track then we could consider buybacks or consolidation......................

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Very good info.
Just need to add that we have 50% lumps!!
Not every other 58% producer has that.
That why we made $9m cash profit during the worst quarter when IO price was low.

AGO Price at posting: 1.8¢ Sentiment: Buy Disclosure: Held
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AGO, page-14

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