Australia's largest stock trading and investment forum Australia's #1 stock forum

AGO

0.00%

4.5¢ atlas iron limited

what no one wants to talk about, page-18

First 18 Last

Share
Profile

Follow
breadwinner1

630 Posts.

82

13/04/18

22:40

Post #: 32449645
Share

Originally posted by graywolf ↑

The more I think about the MinRes teleconference the weirder I think it was.

Ellison opened with a joke which because he couldn't carry it off, came over as very offensive ("There's 151 people on the call. Don't you all have better things to do?"). When people start with a joke like that, it's usually out of a mix of arrogance and lack of confidence.

As someone mentioned before (rcman?), he brushed off a question about the potential tax advantages, claiming that the financials were irrelevant (really?) and that MinRes hadn't talked to the ATO because there wasn't any point. Stating that financials are irrelevant is not only not believable, but implies corporate negligence that a company could make a TO offer, in the realm of hundreds of millions of dollars, and not understand the tax implications. Due diligence is the name of the game and he's clearly not playing that game.

He said how the AGO board had done a brilliant job, but in the next breath said AGO was in trouble again and in need of "palliative care"; that it would be worth less than a cent in a few months if it wasn't rescued from it's own demise, though he also said that he thought the price of low grade IO would increase over the next 6-12 months. In question time, someone asked him why then didn't he wait until AGO got cheaper (which I thought was a brilliant retort), to which all Ellison could say was that they may as well just get on with the takeover.

In the last few minutes his language slipped into ockerisms (saying 'youse' instead of 'you'), for reasons I can't fathom, except maybe he was starting to feel the pressure.

Having finally caught up with all the posts, I'm starting to feel more optimistic that: (1) people power could have some influence; and (2) a more acceptable offer might be made by another company, as others have suggested. I do like the idea of an extra-ordinary meeting (or whatever) being called, with a motion to remove the board, if only to get media attention to the bizarre situation of a board of a listed company so blatantly selling out on its own shareholders.

Expand

So Mr Ellison says “They’ve been trading at a loss for the past three months and I don’t see iron ore doing anything differently in the next six to 12 months,”

Which doesn't bode well for the Quarterly due out in a couple of weeks.
Seems to me Atlas are going to manipulate the figures.
IOP US$74.34 A$ 0.785 IOP A$94.70 - 35% inc lump and hedging $61.55
Atlas stated less than a month ago that Lump >50%, new low impurity fines product, full cash costs 54 - 58.
Don't see how this can add up to a loss. Even at 40% discount inc lump and hedging should breakeven.
We're getting screwed big time.

AGO Price at posting: 2.8¢ Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

SVL

Silver Mines pushing ahead with NSW Bowdens project despite green group setback over power lines

HIQ

Mouthguard concussion sensor tech developer HIT IQ wins second US patent

CC9

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

The Rising Tide: How institutional adoption is shaping the future of crypto

TRE

Toubani raises $10M to see Mali's Koubada Gold Project through to DFS