AGO 0.00% 4.5¢ atlas iron limited

To buy or not to buy AGO where to from here, page-18

  1. 2,776 Posts.
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    @rarebird1971 line 8 & 9 saying $100mill profit in qtr and half year makes no sense to me.

    here my scrap calcs/trade secrets, which are twice others conservative calcs;

    IF - Using average ev/ebit ratio of 11 for Australian miners and IF 200mill ebit, gives 2.2bill mcap and 2.6bill mcap with options exercised.
    IF- using FMG's p/e of 11 and net profit of 150mill, then 150/9=1.667c eps, then p/e of 11 is 18c, or mcap of 1.6bill.

    Now for more accurate facts;
    From 2016 results average realised price was A$55. I figure average realised price for recent calculations is $US 70 and 80% of that for less than the 62% IO, as others have stated. Which equals $93 us*.8=Aud$74 with cost of aud$50 = A$24 net times 14mill tonnes=$A336 mill more profit than last year. Wether that's ebit or net profit, I'm not sure.

    IF its ebit then 336 and 11 times ev/ebit is 3.93 bill mcap or price of 43c.
    IF its net profit then 336 = 336 and p/e of 11 = 349/9.15=3.8c eps*11= 41.8c or 3.8billmcap

    Cash on hand is 80mill and debt is 118 leaving net debt of $38 mill.
    Monthly net cash flow is 24 *14.6/12= 29mill less royalties etc = 25mill.
    That mean ZERO debt in less than 2 months;- End of February or in early March expect announcement and a few months later expect S&P rerating and fund managers accumulating as it enters the rising ASX indexes.

    Roughly, If options exercised, cash flow could be about 750mill for the year, otherwise its about 350. People have done their calcs and are downplaying the fact of the zero debt factor in 2 months and they are using 50% of average valuations for conservatism, which is a good place to sell at timewise, as it will rise to that level quicker. So my original estimate of 1.5bill mcap is half these 3bill macp estimates
    and when u do the maths on the EV, the exercise of options has little variance to these mcap figures. But the S&P rating rating should be tops, so fund managers would be accumulating until these levels.

    These assurance factors of certainty, safety, timeliness and >3/1 rewards for risk, to investing now at these levels, filters into my selection criteria of, massive buy, on the creative philosophy of knowing and realising that is a higher level beyond speculation. Using integration practices to the philosophy of creating your own reality, in particular the one of our main goal of financial freedom, is what its all about on HC threads. That is IF u realise this and then set this particular goal in the first instance of a creative process that u continually apply the processing of the steps, flying and the quantum leaps, that u will experience. As we have seen with the recent value of AGO is the first sprouting of these creative seeds of value.

    How we rearrange the 26 letters to convey meaning and value, to another is infinate and so are the opportunities to realise, this assurance which is in the best and expanded interests of all, sourced from the divine art of realisation of the power and value of the words. figjam.
 
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