patersons report, page-6

Why is this thread called "patersons report"? Is there a report from them? I have not seen it.

SP
shares go up and down every day. mmx and all the other mid west ore miners will have good days and bad days. Also obviously affected by the general market. Its the long term trend thats important. And that means fundamentals. MMX long term trend is up. I bought at less than $1 less than 2 years ago so mmx is performing very well for me in the LONG TERM. I expect a high sp and divs in 2012.

All iron ore sp have already factored in the price rise next year. But thats not likely to do much for the mid west miners because they will be selling bugger all next year. It won't be until 2010 when they are about 12 months from significant production that you are likely to see the sp of all of the survivors quadruple as did fmg.

In the short term I expect that the people who bought mmx at relatively high prices at $4.50+ and some with borrowed money may have a long wait or will cut losses soon. So expect some short term price retracement until early 2008. There should be some good top up opportunities soon.

Joker is right. Us long termers are really the only safe ones in this market.



MIS TAKEOVER AND OTHERS IN THE PIPELINE
On the issue of survival and takeovers most of them will be taken out over the next 2 years. The ones without cash reserves will be picked off by mmx, mgx and pmm. The corporate activity will definitely proceed before the rail and port infrastructure is in place so that bidders get them before the target can take advantage of the infrastructure.

Companies like mis that have little cash are vulnerable to t/o. The only extra advantage mis has is that it will be either mis or mmx, and no one else, who can build the port at oakajee. So mis has an ace with some considerable value. Other than that they rely on the good will and patience of sinosteel the jv partner.

MMX is in the box seat. MMX has destabilised MIS so they are not focussed on mining and port development. By the time MIS management wake up the port construction will have been allocated to mmx. Then MIS will be very vulnerable if it survives this t/o bid. MIS management abilities leave a lot to be desired. So much opportunity has been squandered by this company over a very long period of time.

MIS looks like it will be the first of many mmx t/o bids - win or lose.

However, I expect mmx may well bid for gwr because of ore quantity & quality and proximity to jack hills. AND SOONER RATHER THAN LATER. But this is just a guess on my part. So I disclose that I recently bought some gwr on spec and will hold for at least 18 months to see if anything happens with my tip.

I note the new map produced by mmx now shows the rail line going to Wiluna West [gwr]. HMMMM VERY INTERESTING.