Iron ore price, page-2183

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newB

7,051 Posts.

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09/06/17

12:55

Post #: 25196616
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Originally posted by Samboy69 ↑

Hey newB says -
"any free cash above $80 millions will need to pay back the debt, it is written in the debt contract.
With such a sharp drop of ore price AGO is unlikely profitable this quarter, I don't see where the buy back talking is from"

So cash of above $80M say if its cash of $100M gives it $20M to spend on share buybacks and dividends as they are barred from earlier debt repayments also, yet they were profitable and raked in large cashflows last 2 quarters when IO price was $80-90UST, if they had larger cashflows why didn't they use that to pay down the debt faster when they had it???

Your logic is circular and inconsistent. Are you wanting a higher share price and better management or not?
You look to the future lower cashflows and limitations rather than what they have and could do with what they've got and what they did have in the last 4 months.

At this point they are still cashflow positive and still on track to be net debt free in the next 12 months are they not? So why wait for buybacks when the SP is 1.4c now when next year it may well be 3c-5c and the impact of buybacks will be much much smaller then?

AGO has to reduce equity held and debt to secure the LT future, so why dillay dally and not act in the Ozzie shareholders best interests? This would be in the bondholders best interests too UNLESS they have a different agenda, a sinister ANL type cheap takeover agenda.

At this low SP, the Board should do buybacks with excess cash held or at least use it to pay down debt faster and thereby reduce interest and the reduce costs thereby,

Logical?

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Apparently you have no understanding for a "loan contract"with the creditors, learn that part before you challenge other people's "logic.

AGO Price at posting: 1.3¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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Iron ore price, page-2183

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