Thanks for your response groundhog. Would also add if my response offended any long term holders it was unintended.
To clarify, I was not suggesting AGO go belly up tomorrow, but assuming the current market conditions prevail AGO would be left in a precarious position. We are already seeing predatory behaviour, not necessarily a bad thing either.
Assuming no clear outcomes materialise quickly, then the 30/6 reports will be telling. Reserves is likely to be zero if they pay down term loan b, cash is likely to drop due to expenses increasing (lithium, break fee, manganese??) or remain static, ore prices may impact negatively. New revenues are likely to be realised in 30/9 reports. Project this out over 12 months, balance sheet wise AGO is in serious trouble. I agree, AGO hasn’t explained its high expenses and what it is doing about it.
Your comments on obtaining funding is valid for future expansion, but it goes back to if Twiggy shares your vision for FMG. Gina, looking at the maps, seems to have the most synergies, the one likely to bring down AGO FOB costs.
Ports adds value for Twiggy to ship additional high grade ore let’s say an extra 10 to 20 mta over a 20 yr period assuming FOB costs does not blow out to do so. $50m to obtain a blocking stake may imply he is prepared to spend up to $500m for a takeover of ports (rights). His blocking stake suggests he only needs a seat at the table only and he believes ports would be shared. Gina’s 4.2 will flush out his true intentions.
AGO Price at posting:
4.3¢ Sentiment: Buy Disclosure: Not Held
