Hi GF, personally liked your earlier central argument re DCN being significantly undervalued as a miner, somewhat regardless of the shorter term gyrations of the GP. Still believe that to be the case so more relies on the ability of LJ & team to successfully undertake the turn-a-round than rely on the SP being carried along by any increase in GP. As to your prediction of 4-5% inflation within this year I still reckon (no science attached) that you could be significantly more conservative. Agree totally there will be areas of price push and possibility of a 2 speed economy however if just the price of iron ore comes off its silly season pricing of around $200 then a big hole will open up in our local economy. World wide if inflation ticks up then a lot of European countries will really feel the pinch very quickly so quite likely their numbers will tighten with result believe stagnation is a greater likelihood. Short term (12-18 months) can see a bit of a sugar hit but just cant see how it will be sustained. If we get a major correction in the market everyone with slightly grey hair - if they still have any - will go to bed and just stay there. I am still using 30 years of the Japanese scenario as a basic model. Just me and no university attached.
DCN Price at posting:
33.5¢ Sentiment: Hold Disclosure: Held
