At current IO prices, trading on an EV/EBITDA of ~1. Absolutely... unreal!
- steady and reliably increasing mtpa - All in cash costs have finally been reported. Forget the C1 rubbish, at Diggers and Dealers, AGO has finally announced all in costs of ~$80/ton, falling to $70/ton by FY16. - IO outlook of ~AU125-135/tonne for the next 5 years
EBITDA Margin 40-50/tonne x 10-14mtpa = $400-700mpa gross EBITDA.
This is against an EV of ~AU$550million (noting AGO's huge and growing cash reserves).
Have claimed a large stake in AGO yesterday.
Merrill Lynch PO = $A1.68
Good luck to all holders,
Cheers -Cali
AGO Price at posting:
90.5¢ Sentiment: LT Buy Disclosure: Held
