It does not make sense to short AGO anymore. Only to cover and...

It does not make sense to short AGO anymore. Only to cover and take your profits.

1) There no net debt and $60m net cash in the bank.

2) Cash Flow from operations positive at Iron Ore = $101 and $165m a year!

3) They generate cash while Iron Ore trades above $US75!
and currency stays at 0.935

Given M contracts. AGO sells mostly on monthly contracts of last monthly average price I think. Iron Ore would have to average less than $US75 over months for them to be losing money in cash terms.

There is almost NO risk reward to short.