Curious to know everyone view:
62% Iron ore Index is $38 USD/MT
After discounting for 57% and moisture, AGO would be lucky to receive $30 - $31/MT.
UBS have estimated that AGO's costs are USD $46/MT
That is a gross loss of $15 - $16 USD/MT.
AGO Produce 1M Mt per year.
Therefore at current levels that is $15M USD per month or 21M AUD.
That is before interest on $250M USD Debt.
They had cash balance of 107M AUD
So On my estimations they would have 75M AUD in cash.
I would think that within 6 months they must close the doors.
One would think after BCI temporary suspension last week that AGO should give the market the same announcement.
Curious to know everyone view: 62% Iron ore Index is $38 USD/MT...
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