Big year ahead, page-132

I think what is most interesting about Thyssenkrupp is what’s happening in Europe right now. Many are expecting an announcement of European QE (I’m coining the term QEE, Quantitative Easing Europe) any day now. As a major European institution it’ll benefit from not only reduced funding costs but the hunt for yield and genuine growth assets. In short the cards are aligning for Thyssenkrupp and therefore KNL.

That doesn’t even take into account the steep fall in iron ore prices. Don’t forget Thyssenkrupp are one of the largest steel producers (amongst other things) in the world. Any reduction in the raw input product allows margins to be re-established. A more profitable business is a growing one.

Funding KNL’s mine appears to be a very real and sound business prospect for Thyssenkrupp which will benefit from reduced rates, input costs and a recovering global economy that'll want more of their products.

While the iron ore price is bad news for Australia’s bottom line, it along with oil and other commodities are delivering a worldwide stimulus.

I think KNL’s mine being funded in a simple loan through Thyssenkrupp, their lender or even the EGT should be considered a very real prospect for the above reasons.