Atlas needs infrastructure, Redstone will do it but lend Atlas the money. Redstone will then defacto own it, I just don't see the huge multiples that others do. The port isn't owned by Atlas, they have rights which once gone are removed from valuation , they have tax losses which are proof they have lost a lot of money but not part of valuation (although useful to a buyer), I notice no one says the tax losses will be useful to Atlas in a few years when they are making profits . They need cheap transport of their oro to port, no one will do that for free. Atlas are not in a position to negotiate strongly and once Redstone own a majority they won't negotiate beyond their legal requirement. I can see the government allowing FMG and Redstone to develop new port and Atlas just stagnate so in the absence of higher ore prices they are going to meander at 1-2c. Where is Redstone incentive to build Atlas up, let it wilt then get the rest cheap in a few years.
Let's hope for a better offer.
AGO Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
