I am not 'strong' on accounting standards for mining companies so if anyone is, please reply...
AGO's balance sheet.
Book Value = 1.81 AGO NTA = 1.67
Mining tenements Capitalised = (0.84)
So deducting capitalised mining tenements we get...
Book Value = 0.97 AGO NTA = 0.83
AGO will be in net cash position at 30th June 2014, at the very least $30m.
AGO is generating cash EVERY DAY Iron Ore trades above $US70 (audusd 0.93)
If the share price keeps falling then the board could use debt (borrowed against future cashflows) to buyback 15% of capital at any time I suppose. There comes a point when paying a unfranked dividend isn't in the best interests of shareholders and a buyback is.
AGO Price at posting:
70.0¢ Sentiment: Hold Disclosure: Held
