Been thinking about RIO and BHP ramping up production.
But I have also been considering the amount of seaborne IO exiting the market due to mines closing down. It would be interesting to know just how much IO
(m/t - p/a) will exit the market over the coming year/s?
Some say SDL is a dog, with no future!!
I have a view that they may have timed their entry into the IO market perfectly, by either default or just good luck!!
Others are exiting the market due to high debt and operating costs, and low quality IO and an inability to restructure debt!!
I think the SDL management has been given the "Crystal Ball" of hindsight and foresight. They can have a good look around them as see what is happening to their peers, and perfect a financial strategy that will allow them to survive a credit crunch and an IO price correction.
I would prefer they take their time and look at all the options and financing models.
I would appreciate your thoughts!!
SDL Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
