The big accumulation
Ok in opinion, cyclically the bear market ended in 2016 and so did the big short on IO. Good riddance as in my eyes there's far more risk shorting commodities than going long. For any analyst who continues to call an IO bear market is either:
1. a ST focused individual who has no concept of LT cyclic commodity markets
2. has forgotten the last few painful years for IO investors and has not yet grasped the strong fundamentals and emerging IO demand as the globe comes out of a historical GFC being pro growth and IO supply clearly balanced.
3. ST focused which frankly I don't give a #£## about daily IO fluctuations as it's a distraction from LT investor fundamentals.
4. Stuck in a pessimistic time warp of 2014-2015 and been burnt by the 'surprise' rise
My view is what IO investors are patiently witnessing is a mass accumulation of IO companies such as AGO who are now money making machines. Why? As debt holders dump for a profit, shares are transferred to accumulators and it's going to be interesting in the next few months who will be the largest shareholders and how shares changed hands. Capital growth opportunities with mining is in its early stages after a vicious 4 year bust cycle which finished, costs bottomed, IO balanced and is now recovering as debt is eliminated quickly and significant cash is generated. Show me another sector right now with the potential of our IO miners.
AGO will deserve to have a MC of a billion dollars by next financial year meaning it's SP will rise above 10c.
Get ready holders. The quarterly is near.
AGO Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
