negative thinking yet again stefans,
After the bid closes, Gina & FMG/twiggy will hold 86%-91% & they wil HOLD LONG & HOLD STRONG.
The remaining holders will want 5c-20c for their shares and traders/INSTOs & maybe even FMG will re-appear as buyers in a much smaller free float of tight recalcitrant sellers who want much higher prices.
AGO has returned to the good old days of a tightly held share register with the strong prospect of a dynamic new BOD and management led by the experienced Roy Hill team with cheaper costs, slashed debt and lower interest rate expenses.
Roy Hill is making A$1.1B profit annually on revenues of $4.4B, thats a 25% margin!
If AGO is now making +$3Mpa on $573Mpa revenue then there is a lot of fat on the bone to chisel off there. Even a 10% margin would turn it into a $57M profit pa and if they can get AGO to 25% margin like Roy Hill on that revenue that goes to a whopping A$143Mpa profit.
Thats more than the whole current debt in 1 year and the entire purchase cost in 3 years!
Just add rail and lower costs and AGO cashflows and profits could easily multiply dramatically.
If Roy Hill team can do it at Roy Hill why cant they at AGOs nearby tenements?
Do tell?
