Its clear that the differences are:-
- AGO has strong production and margins and cash at bank of $80M with debt of $118M (net debt is $38M)
- AGO has overhang debt & a large share register
- the others have a much larger MCap versus production/sales income with either no debt or an agressive repayment of debt plan eg FMG
- the others have dividends and a controlled smaller share register
AGO needs to announce asap:-
- a responsible debt repayment plan, say $10M per month or as I said many times a once off $22M downpayment NOW while they have the cashbuild happening
- reduce net debt from $38M to $0.00 asap (not hard)
- a share consolidation plan say 10-1 (from 9B to 900M) like it used to be
- one off share buybacks of $10M and small dividend of 0.1c per share
- a boost in production plan from 8.1MTper half to 10.0MT ie 16Mpa to 20MTpa
This would set the cat amongst the pidgeons and give the market what it wants from AGO. It would rerate to 5.0c-6.0c in that event.
Can someone tell the Board that they cant sit on this right now and must take decisive action for the long term right now.
AGO Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
