AGM had a great run lately but what will the future bring?? Is the time of selling close, or do we keep holding in anticipation of a higher shareprice??
Just lets have a look and do some rough calculations.
AGM will produce around 8500 t/Ni Todays price will give us a revenue of around US$ 442 million =A$554 million
Mcap today = A$560 million
Not bad at all looking at these figures imho.
But lets be fair we probably will see the Nickel price going down a little so lets go for half the price which will give us still a revenue of A$272 million (nickel @US$12/lb)
Even this figure is great and we know that the cost will be around A$2.80/lb.
After the mining cost and with Nickel at US$12/lb we will still see AGM making around A$200 million per annum.
For those who believe that Nickel will be at least US$12/lb for the next 2 years this company is still a steal.
Unless major problems are going to take place regarding commisioning I believe that we will reach the $1 mark in the near future. Once in succesfull production and a Nickel price of at least US$12 we will be close to the A$1.50.
All of this will ofcourse not happen if the Nickel price is going to collapse on us , but I believe that we will be fine for at least the next 10 months.
If anything, by the looks of how much new mines are being delayed, we will have continueing high nickel prices for this year and going towards the end of 2008.
Good luck to all and remember this is my opinion only, so do your own research.
jojo
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
