Iron ore in the ground is worth nothing, and that is exactly how it is.
You can only make money getting that ore out of the ground asap, and sell it into this current market with its high iron ore prices.
Only when you dig it out and sell it NOW you will make the top dollars and once again Flanagan is not sitting on his behind, looking back how good a job he and his team has done so far.
No, he is looking ahead and wants to make money NOW while the sun shines and he basically can rake in the money.
So I think that a small dillution that gives us the cash to significant increase production, which will pay for itself in a very short period of time is well worth it.
It will NOT dillute the value of our holdings but INCREASE its value as EPS will significant increase, if all goes according to plan.
How much this will be, and what the planned production increase will be should be soon announced and probably will put a smile on the face of even the most negative posters here.
The delay of Ridley was foreseen with now Balla balla coming in the picture and once the take-over has been signed and sealed we can expect a possible far better deal.
Rather get a deal signed off that brings us the top dollars and in a better environment like we have now, then a quick sign off, and loose out on the extra $100 million plus, that we could have got for the project.
David Flanagan has so far come up with the goods and I have no hesitation to believe, that his latest move, would not be in the interest of the company and its shareholders.
As a longterm holder I feel confident and excited about the future of this fast growing iron ore producer.
Good luck to all holders
jojo
AGO Price at posting:
$2.69 Sentiment: LT Buy Disclosure: Held
