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.
AGO Price at posting:
75.0¢ Sentiment: Hold Disclosure: Not Held