You guys are aware that AGO is priced at a current PE of 51x and a one year forward PE of 10 (assuming they ramp up as planned). Also note they don't have binding offtake agreements and are selling to the spot market.
If you whole reason for investing is that they are going to sell Ridley, or more likely a portion of Ridley, then you probably need to take a tough look at the company and its performance.
I remember in 2008 they were 12 months away from 4Mtpa, and 18 from 6Mtpa, and 24 from 12 Mtpa. The carrots, indeed, dangled rather popitiously in front of people amidst the iron ore boom's mania phase, and 2 years on they get 70Kt per quarter out the docks.
There's also no definitive measurement on the cost of production, bearing in mind that there's a lot of equity raisings been sunk into the Atlas dream in the past 2 years, most recently a $60M top-up.
Fact is...AGO has underperformed it targets and timetables, and would need 6Mtpa at a good $60/t operating margin to justify its current shareprice.
$4 is a furphy, IMO.
AGO Price at posting:
$2.45 Sentiment: Hold Disclosure: Not Held
