Remember even just a few months ago all the guru boys club Perth journalists were saying the price dropped because of falling demand. Only a few on HC said "No, it's supply". Now every single article hammers on about supply
The big boys are about 10 years too late with their strategy. Simply, they missed the boat and the signals. Once small miners in the risky jungles of Africa started selling a BULK commodity at a rate of just 2 mtpa, then it was already too late.
The articles and the CEO's say "125 mt of Chinese production left last year". So what you idiots! 125 mtpa has ceased entering the market and the price has kept dropping for a year since it left! Doesn't that tell them something? No, it doesn't, because Vale is spending another $20b on expansion.
The mines, the rail, the studies, the plants, they are all there waiting for the price to go back up. As I said many times since the genius' Kloppers and Albanese left: yet another round of golden parachutes is needed in Australian companies.
IMO Sundace still has a very small chance at 40 mtpa if the penguin can get mining costs down from an amazing $25 pt in CAMEROON compared to $17 pt in Australia from BHP and RIO, and depending on the development banks actually acting on their mandates in the hope that in 5 years time at the commencement of production the price has risen.
SDL Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
