I think "out of business" might be going a tad bit far er6n.
Important to remember that the all in costs are $75ish/t and D&A is running at about $19/t, so AGO would still have a healthy EBITDA and be cash flow positive. D&A is in line to reduce by another $5/t in 2015 as well.
However with sentiment the way it is at the moment and margins getting slimmer,I think for this rail deal to really put a rocket under the share price, it will need to demonstrate that any expansion plans can provide significant cost efficiency and not just increased tonnage.
AGO Price at posting:
$1.04 Sentiment: LT Buy Disclosure: Held
