well done beards, page-10

longer term outlook is brilliant Hi everyone,

Well I am always suprised with the the short term horizons of many investors and those who worrie about short term drops in the share price when the fundamentals are pointing only in one direction and that is upwards.

I took a parcel of AGM for 47 cents and believe they are a bargain looking at where AGM is going to be in say 12 months time when they are in production.

This is one of those once in a live time opportunities for what they have so far and with the new leads like Saxon we could be even on a much bigger return then we anticipate from what we know so far.

Do we all realise that Nickel will be staying far above average prices for the next couple of years????.

And do we all realis that AGM is going to make on 8000 tonnes of Nickel at say half of todays prices about US$136 million on income before tax????

And do we all realise that AGM said they expect to mine more then 8000 tonnes of Nickel per annum and that they will receive a premium for their concentrate as it has a higher percentage of Nickel then say the Kambala Mines????

So here we go at a Nickel price of half what it is today we have already US$136 million revenue with only 8000 tonnes (AGM will probably mine more then this)

Take away the cash costs of US$2.25 /lb
and we have US$96 million

Take away tax @ 30% = US$ 67 million

Which will be roughly a profit off US$0.10/share

Or A$11 cts per share.

Give AGM an low PE of say 10 for now and we are looking at a share price of A$1.10 .

Any exploration upside will only increase this valuation and if the Nickel price will be above Half of todays price in 12 months time that will again push the share price in to a higher valuation.

As you can see with this rough calculation of where AGM is going, we have a real bargain here in front of us.

Only the early birds get the worm remember this and fundamentals are totally underlining that there are many worms to be had, for those who get in early.

I love AGM purely on fundamentals and believe that we will get far above average returns if we stick it out with those so called long beards.

Good luck to all

jojo