The reality of all this is that by the time UMC nears production (if not taken over earlier) all of this uncertainty will be behind us and China/India will continue to urbanise and industrialise their 2.2 billion people.
There will be and ALWAYS will be a demand for the quality high grade low impurity iron ore such as that which Railway consists of.
When sentiment and investor money returns to the market there is no doubt that there will be less of it and certainly more discerning on where it is invested. However there are CERTAINLY going to be a lot LESS iron ore juniors out there to pick from.
Ultimately this will put more of a spotlight on UMC going forward as it WILL survive in terms of project viability in developing Railway.
The Roundup is out and the weeds are going to be slowly poisoned off allowing for the real gems to fully blossom.
If you could go back 5 years before the boom really kicked off and buy FMG at 50-70 cents a share would you??? Of course you would......Still trading over $28 now!!
Well this is your opportunity to do so NOW for those of us who missed the FMG early days.
Even if iron ore prices drop 50% they are still up over 250% from when FMG were at UMC prices.
This is not the end of the world but merely a pause of breath before half the worlds population continues to improve their lifestyle.
Could be a once in a lifetime opportunity if you can find the right horse and back it to the finish. The field has been decimated lately with more scratchings to come, but jump on and hang on.
Watch this space.........
UMC Price at posting:
64.5¢ Sentiment: LT Buy Disclosure: Held
