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4.5¢ atlas iron limited

You should be the atlas ceo. What you said is exactly what we...

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rcman

32,823 Posts.

1515

23/02/17

22:13

Post #: 22860791
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Originally posted by Michaeljob ↑

A large portion of the current quarter is hedged yes, therefore the impact from the current high prices will not be fully realized. They will currently be setting the hedging for the next quarter which you would expect to be at considerably higher prices based on the IO price at the moment. The futures pricing gives the best indication of the available hedge prices moving forward which as you can see is much higher than where they have previously hedged
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The other key development that will currently be being negotiated is the profit sharing agreement, the current agreement was set to endure much lower IO pricing so I would be expecting AGO to have some room to squeeze contractors given the more favorable current outlook, after all the contractors did show their hand somewhat when they agreed to the base rates that they could function under. IMO AGO should be able to negotiate out the 25% share of profits above $60/t currently in place as well as reducing the 50% share of the $48-60 range.

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You should be the atlas ceo.

What you said is exactly what we ahould be hearing from them. Maybe forward your post to atlas

AGO Price at posting: 3.9¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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