It's my understanding that AGO's current debt facility has been drawn to fund this current round of Cap Ex. However due to the high IO price over the last two quarters it has not been needed! Perhaps they will use it towards cap ex involved in H2 or maybe they won't use it at all, we don't know!
One thing is for sure they will need a lot more money than that to develop the Port & infrastructure needed for H2.
IMO a rail deal with out a JV won't do much for the SP. However a JV partner prepared to pay for the expansion on top of a rail deal will be a catalyst for a significant re-rating!
dIETZr Would you short AGO ATM? Until the Chinese come back from their Holiday and we get a reading on what's happening with the IO price it doesn't seem like a very smart play to be shorting AGO. Tesla is one of the most shorted stocks in the US, in November you had some analyst recommending a buy on it "because" it was so heavily shorted. About 40% of the company was owned by short positions. The share price has gone up 35% in six weeks!
IMO if the IO price takes off again short covering will be a big driver of the AGO SP!
Good Luck!
AGO Price at posting:
97.5¢ Sentiment: None Disclosure: Not Held
