Atlas cost of production is less than A$50 per ton (as stated on the company's memo). As long as iron ore price is at above $50 per ton, the company will make substantial profit. I think few people got spooked by AGO's loss recently but what they didnt understand is that the lost was caused by asset write down not largely due to the fall in the world IO price.
Unlike FMG they have no debt, Atlas has a lot of room to move than FMG. FMG may collapse when iron ore price hit $70 but NOT Atlas, in my opinion.
AGO Price at posting:
$1.09 Sentiment: None Disclosure: Not Held
