In opinion:
Good post Samboy. AGO has plenty of benefits for FMG if they made a fair offer.
AGO has Ridley Magnitite project for high grade ore. It's close to port but needs rail, infrastructure and funding but could help FMGs situation regarding grade.
AGO has loads of IO resources in the pilbura.
AGO has a JV for Lithium DSO from PLS which will generate up to $20 per tonne profit. Around 20-30 million income per year.
AGO has a JV for Manganese.
AGO has a JV with PLS in Mt Francisco and 100% owned Pancho Lithium project. An opportunity for FMG to explore the upside of lithium within its doorstep.
AGO also has Copper, Gold and Tantalum exploration potential.
AGO in my eyes is a vehicle for diversication for FMG.
AGO may provide tax benefits for its partner for past losses.
AGO has port allocation
AGO has existing infrastructure
AGO is a local Aussie company employing Aussies. Just like FMG.
To me FMG MUST counter offer for AGO, 5-6c is fair initially. It makes sense and I think Twiggy would understand the situation of AGO shareholders but also understand the enormous opportunity for FMG to leverage off AGOs untapped upside. FMG even with some of the lowest costs has been hit hard by the market unfairly in my eyes and such a merger would diversify and derisk FMGs IO resource portfolio.
The opportunity is with FMG for the taking.
Personally I would love Aussie companies to merge but the terms need to be fair for share holders. MINs offer is laughable.
What can FMG offer?
In opinion: Good post Samboy. AGO has plenty of benefits for FMG...
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