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Flip61

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19/06/18

14:13

Post #: 33799005
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Originally posted by asx_dude ↑

All in opinion:
You can't see attraction? Hmmmm.
Some of the benefits of picking up AGO:
1. Use the extra port capacity of AGO for IO or diversify through the port with Lithium for example. Use the capacity via AGO being a 65% founding member of NWI port.
2. Use the potential 500mil tax benefits of a TO of AGO
3. Use AGOs large tenements to explore Lithium or other potential resources such as Copper, Gold, Lithium (AGO used to be a Gold explorer before IO) gives FMG a great opportunity to diversify quickly using existing infrastructure. Mt Francisco and Pancho for example for lithium potential...
4. Tap into AGOs significant high grade Ridley resource close to port. Just what FMG needs high grade goodness on its doorstep to compliment it's current IO product. Blending potential?
5. Benefit from AGOs current diversication JV income (PLS Lithium DSO income, AGOs %5 lithium royalty and Manganese JV income) or ramp up FMGs own diversication strategy to derisk away from low grade IO. Tap into AGOs tenements and drill drill drill.
6. Utilise AGOs existing infrastructure and workforce and it's own infrastructure to lower production costs further.
7. Twiggy has already been a supporter of AGO back in DF days. I would assume Twiggy would enjoy taking over AGO on his terms. Even if FMG wins I hope Gina and MIN can also negotiate JVs down the track.

Plenty of upside potential with AGO.

Whoever fails to pick up AGO at this opportunistic strategic time in the market as commodities recover steadily from multi decade lows will be kicking themselves. As US equity, Aussie property markets, global tech unicorns and coiny coins pumped up on cheap global money deflates back to reality as the cost of debt rises and good old Aussie commodities take centre stage, miners will dominate investor returns. While costs are at lows it's in the best interests for Australia to profit heavily from his resource windfall and capitalise on Lithiums future demand potential. Good for government revenues, good for Aussie investors who have supported the mining industry through tough times and good for mums and dads working in the industry.

I sincerely hope FMG holders can benefit from AGO and as I've also held FMG I respect it's operation and it's loyal share holders. The potential is certainly there and profits to be made. Good luck all.

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Thanks Dude,
I appreciate your effort in that reply. I seem to remember reading somewhere that AGO recently lost port access, or some of it.
Flip

Last edited by Flip61: 19/06/18

FMG Price at posting: $4.54 Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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