MOY - Argonaut say buy, page-5

Hi flaming,

My calculations refer to annualised revenue and profit from Q4 onwards based on the current AUD gold price and Argo's $1100 per ounce AISC comment.

Now, you rightly point out that MOY said its AISC will increase in the interim, but you will not that my comment refers to what the situation will be at the end of that process.

If you want to fathom a guess at what the cash position will be at the end of the process then by all means adjust my EV - that's the only variable that really needs to be adjusted to take into account the matters you discuss above.

If you think the current EV (or your adjusted EV that I will wait for) is suitably low for a company that is projecting $67m annualised profits beginning within the next half year then I don't think there is any justification for selling at all - other than, as I have pointed out, the index funds that are literally required by law (their mandates/trust deeds/investment contracts) to sell stocks that are removed from the All Ords.


PS - if you think 5-6 months is a long term perspective you might need to check your watch!