Couldn't agree with you more about AGO's longer term potential. I think AGO is currently the most under valued resource stocks on the ASX.
With the "strategic" Atlas-Warick merger (many say AGO bought Warick betting that railway access will open up in due course), the combined land holding (no correlation to resource base) of 15,000km2 is (as odd as it sounds) larger than BHP's holdings in the Pilbara. IMO, there is substantial discovery up-side in the years to come (North and South Pilbara).
The Ridley mangetite project alone (once a JV partnership is signed) could propel the stock to another level. Somehow the market isn't paying much attention at this stage.
If AGO (then an little explorer without a spade of ore shipped) commanded (albeit frothy) $4.37 over a year ago, can you imagine what the future holds.
Consider this, the GFC (the worst global financial catastrophy since the depression) only took the bench mark iron ore price down 30% (with spot price much higher). What do you think would happen to AGO shares in the next iron-ore boom (many say the last commodity boom was rudely interrupted by the sub-prime led GFC)??
If Don Argus's vision is any guide, the next Super Cycle will be breathtaking.
AGO Price at posting:
$1.89 Sentiment: Buy Disclosure: Held
