FMG no interest in AGO,
FMG are reducing debt wit any available surpluses as this is serious market worry for them, high debt ratio 10B/15B MC ie 67% debt to equity for FMG, dey are marked down heavily due to debt, if dey acquire it will be in cheap copper or Nickel stocks - dirt cheap many of dem so as to diversify away from reliance on IOP.
FMG many mines and expanding resources & production, dey can help AGO wit railroads to boost their own income but havent done this for 5 years when had good chance, FMG not takeover AGO, they need that $1B to reduce debt lower or have to sack staff again. Dis very painful for AF and FMG staff and LTH, memory very recent, AF memory of ANL fiasco in Nickel very strong, not take on more debt to buy AGO. Not pruduent move and their SP drop more if they did this. If FMG can reduce debt to $5B or even $2B over next 7 years den their SP take off to where it should be compared to other IO miners and den maybe when flush wit cash look at cheap juniors if current mines topping out, but their land holding in pilbara massive and can look in existing tenements of their own and find more whenever they want.
AGO low debt, strong income, existing 5 mines - takeover target for sure.
i Dont want yanks to do what they did with FMG, MBN and ANL, no way. pile in debt and den put it under shafting LTHs. Dey may do this anyway as yanks love debt so not pay wit own money but free money from US Fed which not last forever. Maybe even Aurizon, QR or Onesteel/Arrium where many more synergies wit AGO but dey have problems of there own also.
postulate MIN best candidate not FMG - dis would be logical and mathematically sound proposition, many synergies and savings and all OZ operation can compete better with top 4 majors
AGO Price at posting:
67.0¢ Sentiment: Hold Disclosure: Held
