so for every tonne they ship they are loosing about $13 a tonne...

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ozexplorer

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14/12/15

18:38

Post #: 16611588
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Originally posted by ozblue ↑

Total short position on AGO is 29m shares or 1.12% of issued capital. That is quite low, so shorters are not the problem Tomboy.

You keep asking where are all the sellers, after the price has gone down about .1c/d for the last couple of weeks. The real question is where are the buyers, if your maths was anywhere near accurate??

Answer, there are none as your maths is so blatantly wrong!! Except of course the odd idiot that thinks they can make .1-.2c in a few days. Boy are they in for a shock!!

The current price for the low grade AGO are selling is something like $US29.60, being a 20% discount to platts 62%. That is what Atlas is getting for 56% IO. If you transfer that into $A at 72c, then the price received is about $A41.11.

The company itself has stated costs to remain between $A55-59/t. You don'r have to be Einstein to work out that a cost of even $A55/t (lower than last quarters $58/t minus the received $41.11 is going to be losing at least $13.89/t.
That is the bottom line right NOW, a loss of $13.89 per tonne IF costs are at the LOWEST end of the range they gave.

The hedging is "Atlas is now hedging a greater proportion of its cargoes. At 22 October 2015, 2.8M WMT was subject to some form of forward price fixing via the use of forwards, collars or puts"

So in the 8 months towards the EOFY out of an expected 12mt of sales, about 1/3 is subject to some type of hedging, the rest is losing squillions. Sorry but we are nearly at GAME OVER.

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so for every tonne they ship they are loosing about $13 a tonne not good........how many tonne are they moving a day now????

AGO Price at posting: 1.5¢ Sentiment: None Disclosure: Not Held
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so for every tonne they ship they are loosing about $13 a tonne...

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