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4.5¢ atlas iron limited

kudos to you for being realistic with the time frames and not...

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nt_1973_au

8,072 Posts.

107

18/12/16

22:29

Post #: 21423293
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Originally posted by rarebird1971 ↑

just thought it an interesting observation to run a comparison btwn AGO and FMG

Now before you reply stating that I haven't made allowances for this and that just relax. I didn't want to spend all day on it I just wanted to reconfirmed my position in the stock for my own sanity and this is what I come up with:

AGO. FMG
PRODUCTION. 15-16 mt. 165-170 mt. (11x)
NET DEBT. $89 mill au. 7.12 billion au. (80x)
SHARE PRICE. .029. $6.30. (217 x)
MARKET CAP. 260 mil. 19.6 bil. (75x)
SHARES ON ISSUE. 8.995 bil. 3.113 bil. (2.89x)

Assumptions - if AGO WERE DOING THE SAME PRODUCTION AS FMG (11x) SP WOULD BE 31.9 cents
If AGO HAD THE SAME AMOUNT OF SHARES ON ISSUE AS FMG (divide 31.9 cents by 2.89) the SP FOR AGO WOULD BE AROUND 11 cents. As stated above this doesn't allow for FMG's higher margins but on the other side doesn't allow for their much higher relevant debt either (80x) it would take three amazing years for FMG to repay all their debt AGO will be debt free in two good quarters.

All the best to AGO holders prediction 5 cents by Jan 20th, 7 cents by April 20th, 10 cents by July 20th debt free by April 20th.

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kudos to you for being realistic with the time frames and not posting a "10c by christmas" prediction.

AGO Price at posting: 2.9¢ Sentiment: None Disclosure: Held
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0 Great analysis

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