re: Ann: Header Correction - Atlas on track f... SW
Don't agree with you re the credit facility.
Market has known for some time that AGO will need to use debt to expand, it was factored in long ago, no current impact on SP. AGO had a lazy balance sheet and its only a modest amount of debt - should be fairly easy to service that debt at 12mtpa even in light of current iron ore pricing. Expansion plans are ~2 years behind schedule, I'm sure the market is actually happy to see AGO getting on with it and securing the necessary funding to achieve their growth targets.
Raising +$300m of equity capital at current prices would be a negative and further dilute EPS.
The credit facility should be viewed as a positive; debt is not a bad thing if its sensibly considered, implemented and managed.
re: Ann: Header Correction - Atlas on track f... SWDon't agree...
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