Der Speculation on AGO prospects, it drop or go higher .
Der drop in SP limited 71c-67/65 and large volume buying >10Mpday taking it higher i postulate. Sell off has not retraced back to 55-65c range yet, I postulate AGO higher medium term for dese reasons - lower costs, higher production, market not yet value 5 mines, massive other tenements on its books, infrastructure already built and working and producing at better than expected, every quarter new record production.
Also IOP rising from lows and china is safe haven now with rising production and building,, no one talking of "hard landing" but can china continue 7.5% pa growth or go to 8.5%,, ha dey talk last year of china collapse.. reuters cites shanghai iotrader who says today "i think the downside risk [for IOP] isnt too much at this point. The market has a better chance to go to $100 than $90" (macrobusiness.com.au/category/ironoreprice).
But takeover speculation is key. MIN, glencore/xstrata or US hedge funds must make offer for AGO all scrip bid for MN or cash for others at 40% premium around $0.90ps, longer dey wait more der SP will be. Once market rebounds price much higher, better to buy 19.9% stake first quietly as share register wide open at dis low price.
I postulate AGO is BUY at current 5 year low prices when income, production at record highs for AGO. Its a takeover target for anyone wit cash to do it.
AGO Price at posting:
65.0¢ Sentiment: Hold Disclosure: Held
