If China cant negotiate cheaper prices for their Iron Ore, they will go ahead and buy up large steaks in Junior Iron Ore companies to secure their resource...This is a new trend emerging from this financial crisis....a lot of the IO companies SP have turned a corner and are on the rise... We may also see a consolidation of these juniors as well or take overs by BHP and RIO....things are changing...
They may not necessarily be Australia based Iron Ore producers either....the 4th Largest Iron Ore mine is located in Cameroon in Africa and is currently being developed...Sundance Resources (SDL)...and foreign steel producers are scrambling
I will be waiting to see what the next round of quarterly results are before i would even contemplate calling the bottom...
Great to see such positive and open discussion on the topic...
