Providing rail access seems to me to be a no brainer if that was what Ellison ventured to say. All other interests aside, just talking iron ore, what if a scenario that even vaguely resembled the following could be agreed. Rail / road for 10 million tons at a price that reduced our all up costs from $A60 to $A50 per ton. Realised price remains at $A60 a ton. Bottom line improvement $A100m. And and this is where I lose it and start running around the house demanding that everybody hands over their piggy bank so I can buy more AGO shares. HPPL make money a. By providing the rail at commercial rates whatever they are. b. As 75% owner earning $75m of the $100m they have facilitated. Tax free remember until the $1.5bn carry forward tax losses are exhausted c. As a shareholder in AGO whose shares could rise to say 10 cents a share on the back of a $100m profit. 10 times earnings? Which if it happened would be a paper profit of around $400m. (say 7bn shares by 6 cents). Which when all combined is more than $500m. AGO on the other hand in a few short years would at that rate would be in a position to at the very least be able to pay off debt, fund CD, fund Mt Francisco, fund NWI and then look at more tonnage. So as negative as some on here can be I am positive. No wonder she wants it. Yes I know the figures are rough as guts but as I said I am a positive person. Otherwise I wouldn't be here.
AGO Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
