AGO, my top pick.
Market cap $150m.
Annual production: 12.5Mt - 13.5Mt
All in cash cost CFR: A$65/t
Cash 30/09/14: $205m
Gross debt: $330m
According to latest company announcement, they could make EBITDA of $75m if iron ore price at US75/t.
Iron ore spot price bounced from US$66 to US$71 over last few days. As 3/4 Indian miners closed and most of China's production cost are well over US$80/t, A$99/t, I expect iron ore price to recover at least to US$80/t.
During 2008-2009, iron ore price drop from $130 to $58/t in Jan 2009, then recovered to over US$130/t.
