Ann: GRR Quarterly Report for the 3 Months Ending, page-33

re: Ann: GRR Quarterly Report for the 3 Month... Check out the Iron Ore Industry Market report that Deutsche Bank put out on October 24th:

http://pull.db-gmresearch.com/p/1621-3B5D/2316053/0900b8c08717f4b6.pdf.


Seemingly too low iron ore consensus prices are leading to dramtically low valuations. Most analysts have been using long term prices between $75/t and $95/t. The Deutsche Bank report is full of insight and analysis as to why much higher iron ore prices could be justified.

“The market’s use of cost curves to determine price pressure points in an oversupplied market in base metals has been erroneously transferred to iron ore. We have created a cash charge curve that normalises each iron ore product in the industry relative to the spot reference price. This shows support for the iron ore price at US$112/t despite 375Mtpa of new capacity entering the market over the next 3 years.”