Which IO Co is best positioned to recover?, page-26

I suspect Chinese investors have a different policy to the average FUM entities. Chinese are not looking at ROI in the traditional fashion but guarantee of supply favored by the SOE through their investing vehicles like those projects in the Pilbara and mid west as well as AQA. I somehow doubt AGO fits into their scale of operations, too small. Using trucks to transport ores versus driverless haul pack and rail is a good reason why value has been decimated by a falling IO price.

AGO is very cheap but if one take a position now, they will be betting that IO spot will bounce to a level where there is some margin for AGO to sustain their current operations. If it stays at this level I don't think it matter if you put cash into MGX ARI or AGO. I suppose in MGX cash reserve will still put value to SP in care/maint mode but the Chinese would rather put it somewhere than line the pockets of the minority holders. I would personally be looking at BHP/RIO to get exposure to sustainable and still profitable operations if there is no bounce in spot and then profit from a small % rise in capital growth rather then the bust or multi bager returns should I guess right with high cost operators. That is the reality investors faced.