YMYC, page-3

  1. 1,327 Posts.
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    In opinion:
    Its impossible to go back to the SP decade lows of 2015-2016 when AGO was 1c. Why? Because since then (it's a long positive list by the way):
    IO LT technicals reversed it's trend from cyclic bear market 2012-2016. Now in early stages of LT bull market as IO demand globally ramps up. The ST volatility movements in IO are merely blips for traders benefit.
    As China maintains strong growth off a bigger base each year, ex China global demand will offset Chinas mild slowdown into the next decade as the world moves into Globalisation 2 mode and modernises considerably. Eg cleaner energy and infrastructure to accommodate changes and technology improvements for transport, trade and living.
    Chinas economy did not collapse.
    Chinas property market cyclically improved after years of downturn.
    Chinas infrastructure was ramped up.
    OBOR is happening in a big way.
    India is urbanising quickly with 120 cities and 20 - 30 million houses Aka China Mach 2.
    US's trillion dollar infrastructure incoming.
    IO supply glut peaked and so did all the doom.
    IO supply reducing as China halts domestic uneconomical tonnes as planned. This benefits quality Aussie IO suppliers who dominate the market including little AGO.
    Profits now preferred to expansions by majors as they all have debt to chip away and dividends to pay.
    AGO is now net debt free.
    AGO all in costs are in the 40s US per tonne.
    AGO is diversified in one of the fastest growing resources on the planet. Potential for further exploration on its own tenements for diversication.
    Farm in JV agreements in place with alternate revenues.

    So....How can .9 cents be predicted when several upside fundamentals have emerged as above over the last 2 years. AGO is stronger than ever and its cash is building quickly allowing further opportunities to JV, merge or takeover other producers in the future.
 
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