trading joke, page-28

See no evil, speak no evil, hear no evil... Putting your head in the sand isn't good investment advice either.

Thanks to the rally in gold miners I've made a lot back from entering at the low point (just as some entered in the low point on gbg here). I'm negative on iron ore and coal. At least I am backing comments with some facts. Most just say wooshhh and get 20 TU.

I entered gbg pre gfc. And bought more in the gfc post ansteels finance deal of 1.2bn debt package. It made sense then. Operating costs were soooo much lower, as with the exchange rate and CAPEX. GBG was extremely attractive then, hence the broker praise.

Oh how things changed. I sold out between 19 and 11 cents for the most part. Delays and blowouts destroyed shareholder wealth. Although I lost peanuts compared to those poor sophisticated investors whom tipped in excess of 500m of equity. And Ansteel? Woah, they have lost the most.

Would karara go ahead in today's environment? The answer is no. The return on investment is too low.

As I said Karara at the current iron ore price, nameplate and PROPOSED operating costs is very profitable. At 110 per tonne it's fairly dismal.