I could not agree more. If they focused on producing 6M - 8M MT a year, they would generate EBITDA around $150M - $200M and have a market capitalisation of $1.5B - $2B. Roughly $1.50 - $2 per share. What they are doing now is using profits to acquire and develop other mines as well as using debt. If there is a contraction in iron ore price to $100/MT this stock could be trading around $0.50. Question is, can they walk away from Horizon 2 and just focus on 6M MT per ywar.
AGO Price at posting:
88.0¢ Sentiment: LT Buy Disclosure: Not Held
