seven lessons learnt, page-187

Mr Gifford,

I think your few posts amongst the many on this thread are an exeption...so thumbs up from me.

An objective stance is the best when investing in any stock.

I track the bulk commodity markets for a living as a trader in the end product and not the ASX stock..all I am interested in is the spot market prices and the long term objectives of my potential clients.

So todays updates from my market advisors re NMDC and Iron Ore per se that LCY holders may like to know about as below:

"E-auction of 2 lakh tonne iron ore this week:

NMDC Government-owned iron ore producer National Mineral Development Corporation (NMDC) on Wednesday said that it is looking to e-auction about 2 lakh tonne of iron ore from Karnataka mines starting this week to provide some relief to the steel companies.

"I believe this (the auction) will take place this week. We are looking at a minimum quantity of 2 lakh tonne," Rana Som, chairman, NMDC, said on Wednesday. He added that e- auctioning fetch better prices and also help evacuation of stocks.

The company will also join hands with Russian steel and mining company Severstal to set up a 3 million tonne per year steel plant in Karnataka by end of this year. "This would be a 50:50 JV and we will sign an agreement with Severstal by December," Som said. The JV would have two subsidiaries - a captive coking coal mining subsidiary in Russia and an iron ore mining subsidiary in India.
China’s iron ore imports seen soaring to 1b tons
China’s iron ore imports may surge to 1 billion tons by 2015, up around 60 percent from last year, with the world’s biggest steel producer able to cope with a potential recession in developed economies, miners said Wednesday.

China is the biggest buyer of the steel-making raw material and firm demand has been largely behind the strength in spot iron ore prices which, at above $170 a ton, have trebled from late 2008.

Australian miner Fortescue Metals Group Ltd , forecast a rise in Chinese imports to 1 billion tons by 2015 at an industry conference in China’s eastern port city of Qingdao. That will be more than 60 percent higher than China’s imports last year of nearly 619 million tons.

Brazil’s Vale, the world’s No. 1 iron ore miner, said China’s robust demand will keep global supplies tight. “Vale is still confident in the market fundamentals,” said Jose Carlos Martins, Vale executive director for sales and marketing.

Baosteel warns against financial trading in iron ore
Dai Zhihao, vice president of Baosteel Group, has warned Chinese companies against participating in the trading of iron ore financial products such over-the-counter (OTC) and swap contracts, saying these may add more risks to their business.
“Your counterparties may fail to fulfil the buying/selling due to financial difficulties or bankruptcy, though clearing houses may reduce the risks, or iron ore miners may manipulate such contract prices via adjusting their supplies to the physical market,” he said on Wednesday at the China International Steel & Raw Materials Conference in Qingdao.

However, so far most Chinese steel mills and iron ore trading houses have been staying away from these markets, and of the 70 active traders of swaps on SGX, the dominant majority are financial institutions and investment banks, Dai said. SBB understands, nonetheless, many Chinese iron ore trading houses are considering joining in iron ore swaps trading as a hedging tool. (SBB)"

This may help you all understand a bit more about motives with offshore buyers and investors.

The Indian government will buy at the cheapest possible rates and sell at the highest...but that's my view. You all need to think carefully about what the deal with NMDC is really worth to you in the long term ..is it to your advantage or is it to The Indian governments advantage...or is it to the chinese shareholders advantage.

NMDC are looking after themselves and their best interests,not necessarily yours ..they may want more Australian assets but will it be in your interest..I note that there is now talk of a Newco..what's that all about??

Sure LCY has come great assets,but it may be time for the faithfull shareholders to think about who to give the prize assets to! There may or may not be other interested parties at a better return to shareholders.

It's probably time for shareholders to talk to management before you have no say in it.

Iron ore juniors at large are having a hell of a time on the market..LCY is one of those ,production is not close at hand and you must look at MMX as a producer,now sitting at 31c as a close example of how things are or how they can go belly up.

I held this stock but sold when I was uncomfortable about the final decision delays let alone dealing with the Indian government rather than a private enterprise operator...always a problem ..how the hell can the FIRB allow this is my concern.

Bottom line is that the top Indian Iron ore and steel producer (non Gov't) is so desperate for Iron ore this week that is has advised that it may close a steel mill due to lack of iron ore supply? So what's wrong with this picture?

There is a bit of turmoil in the Indian bulk commodities sector at the moment.Check it out.

LCY has a good resource in Mt Bevan but I must tell you there are many other Aussie large scale junior contenders that NMDC will not get their hands on... not under their terms.

Too cheap guys,don't sell the back yard for peanuts..but that's my view. It is our backyard after all (i.e. australia's ,isn't it?).

anyway, enough from me

Cheers HR

No advice given or intended,it's your money ,not mine..invest wisely and I would never sell the farm without a fight under duress.Wake up Australia...although we do now have a major investment disadvantage with the Resources tax and the Carbon tax about to be imposed on us ..that's a bargaining tool the O/S investors are now using as a weapon for a cheap entry.

Strictly my views and biased opinions .. so take no notice.