Australian (ASX) Stock Market Forum

AGO - Atlas Iron

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Don't forget those AGOOs, which traded up to 1.3c today! (wow)

Would suspect most the cap raising was covering by the hedge funds that were short... Which paints an even worse picture now for AGO.
 
The prospectus began with the caveat -
Warning This prospectus is strictly for philanthropists and the clinically insane.
 
notting said:
The prospectus began with the caveat -
Warning This prospectus is strictly for philanthropists and the clinically insane.
Click to expand...

Lol.

Having said that, isn't the "average" shareholder better off?

They raised $87.238m @ 5c per share with a free attaching option. At today's close, AGO is worth $95.9m while AGOO is worth ~$10m.

Without the capital raising, AGO is worth $0. Now AGO is worth some $18.6m above the amount raised. Value creation!
 
Just wondering what people thought AGO is at now , after reading that they seem to back on track and paying off a reorganised debt with approx 118 mil left and a mildly optimistic goal of paying it off by June this year. Provided of course Iron prices remain solid can this company get back off its knees?
 
Blade Runner said:
Just wondering what people thought AGO is at now , after reading that they seem to back on track and paying off a reorganised debt with approx 118 mil left and a mildly optimistic goal of paying it off by June this year. Provided of course Iron prices remain solid can this company get back off its knees?
Click to expand...

When valuing AGO it's important to remember that two of their mines are scheduled to cease production within the next 12 months. They do have some expansion plans in place but overall you are looking at a reduction in production volume very soon.

The other key factor is obviously spot iron ore prices. Arguably, most resource companies are currently "undervalued" under the spot price scenario... as most people seem to think the current high spot prices isn't sustainable. So whilst AGO would certainly do better if the spot price stays high, would it really be the best risk-adjusted choice given the uncertainty in future prices? AGO's cost of production (~$40-50/WMT - don't quote me on that) is quite a lot higher than the most efficient producers ($10-12/WMT like FMG), so they have a high leverage to any strength in spot price, but it also wouldn't take much of a fall in spot price to turn them back into cash bleeding mode again.

I don't have the answer... but current momentum appears positive.
 
RSI looking sweet fellas.

AGO.png
 
AGO breaking 6 month highs after a long consolidation period .... Recent DSO deal with PLS will produce some additional healthy cash flow ..... Looks good to me for the medium term:2twocents
PS I hold ... but not as much as I'd like to:)
 
barney said:
AGO breaking 6 month highs after a long consolidation period .... Recent DSO deal with PLS will produce some additional healthy cash flow ..... Looks good to me for the medium term:2twocents
PS I hold ... but not as much as I'd like to:)
Click to expand...
My two cents having lost 98 cents of my investment on AGO!
There is one fatal connection: Find out who was the MD of AGO when the company took some of the serious judgmental errors crippling the company now.
Now look into PLS and who is the current MD.
The talk between PLS and AGO - is a too dangerous connection for me.
Whereas I am unable to dislodge my paper corn worth investment on AGO, what I did got out of PLS even if it has now doubled since I sold.
Emotion does not pay, but without emotion, we are duds as stone on a grave.
 
Yeah we've all had a few bottom draw-ers over the years Miner:oops: ... don't know much about PLS other than AGO will make some nice cash from the DSO arrangement.

Looks like a solid finish for Atlas today.
 
A bloke would nearly have to be happy with the way this is behaving:) .... hope a few got on board. Looks to still has some legs in it.

Expecting a positive announcement over the next day or two given the price action.
AGO Jan 2018.jpg
 
Looks like there is high speculation for a takeover offer for AGO from Mineral Resources (MIN).

Both AGO & MIN are on a trading halt as a result of the news speculations, potentially good for AGO holders.
 
leyy said:
Looks like there is high speculation for a takeover offer for AGO from Mineral Resources (MIN).

Both AGO & MIN are on a trading halt as a result of the news speculations, potentially good for AGO holders.
Click to expand...
Hope AGO could lift at least to 50 cents so that I can recover at least half of my loss by buying it at more than $1 !
However if the market will be too excited to lift MIN quote if the rumour is true.
 
Well official announcement made today with MIN takeover offer for AGO.

It is up 42% on open.

Summary below: Not a great offer IMO, considering it was around 4.0 cents in January 2018.

upload_2018-4-9_11-22-11.png


upload_2018-4-9_11-22-28.png
 
Fortescue Metals Group acquiring a strategic 15% stake in Atlas Iron. Looks like they're trying to scuttle the Mineral Resources takeover.

Fortescue announces acquisition of a stake in Atlas Iron

Fortescue Metals Group (ASX: FMG, Fortescue) has agreed to acquire 15.0% of the ordinary shares in Atlas Iron Limited (ASX:AGO, Atlas Iron) at a price of A$0.04 per share. In addition, Fortescue has an economic interest through a cash settled swap relating to notional shares equivalent to approximately 4.9% of Atlas Iron's ordinary shares.

As a result, Fortescue has an aggregate physical and economic interest in 19.9% of Atlas Iron’s ordinary shares.

Fortescue does not intend to support the proposed Scheme of Arrangement between Atlas Iron and Mineral Resources (ASX MIN, Mineral Resources) on its current terms, but reserves the right to do so. A substantial holder notice and further details of the swap will be lodged in due course.

Yours sincerely
Fortescue Metals Group Ltd
Click to expand...
 
On November 21st, 2018, Atlas Iron Limited (AGO) was removed from the ASX's Official List in accordance with Listing Rule 17.14, following despatch of the compulsory acquisition notices by Redstone Corporation Pty Ltd.
 
greggles said:
It is being reported that Gina Rinehart's Hancock Prospecting has also joined the fray
Fortescue Metals have increased their 15% stake to 19.9%.
It is going to be interesting to see how all this plays out.
Click to expand...
all in the timing, it would seem. Gina H ended up in control.

Noticed this in Hancock's release
Atlas produced 9.8 million tonnes and delivered a $225 million dividend
Click to expand...
 

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