Srebrna, I agree with your fresh optimism in investing in AGO and BCI as you are the beginning of many new fresh investors who will soon fill this forum. Good on you and keep up your enthusiasm in this shorter dominated forgotten sector of late.
As a long term holder, i recently doubled my AGO and BCI holdings to average down significantly to position for a slingshot upswing
. These are great companies surviving at the bottom of an exaggerated commodity bear market which has now stabilised. They are small and nimble companies who have consistently dropped costs down to remain competitive and obviously have assets others would like to get their hands on. Yes AGO will be diluted, and like all stocks there's risk but this is the turning point and this is an opportunity with upside.
Demand Upside
Have you read recently news from China that their property market is improving? Read the Arab News 'Chinese economy to stabilize in spite of market sell-off'. Great story from global views abroad. At 7% growth year on year, China is still a powerhouse of growth as they are only 50% urbanised. If you read about the India Smart Cities being constructed this year (India 30% urbanised), European counties and now recently the US are big supporters of Indias vision and it seems to be gaining momentum. India have intentions of moving 300 million people or more (pop. of US) into urbanised cities within the next few years. India will need our quality ore one way or another even if its trained through the one belt road from China. Their grade is too low to solely rely on.
AGO is still profitable now and with the debt restructure and positive negotiation it will pay off its debt over the next 12-24 months and will remain (outside the Big 4) one of the most competitive mid tier IO mines in the world. Remember IO has bottomed and LT IO trend is changing momentum to the upside. As it survives now it will reap profits with the slightest upside to IO hence why it will pay off its remaining debt.
This company has a lot of supporters and DF and the management team have done a great job in this tough market and have clearly demonstrated Atlas's survival and its worthy place in IO. There's a lot to win with a surviving Atlas. Win for debt holders, partners, government and its long supporting shareholders.
Good luck to all current holders of AGO, BCI, FMG, BHP, RIO and other IOs. 2016 is year of the Monkey, expect a more positive year out of China and abroad.
