I guess during these hard times you need to put a few things into perspective and ask why you bought in the first place. I was lucky enough to buy in at lower levels so maybe this perspective is easier to see than for others.
Investors can take heart from the fact that even if the iron ore price were to come off 20% from current levels over the long term, SRK's margins will remain excellent. High grades and tonnage with low impurity content make SRK's deposit world class. It will put them in the top quartile of iron ore producers globally. Thats the comfort you get when you buy into a world class deposit - there are not too many around and most of them will go into production regardless of good times or mediocre.
Secondly, you can take comfort from the management in place. SRK's managment have proven track records and are likely to succeed. Although not the most marketing savy operators they have been very busy advancing the project to position the company for a 20mt per annum operation.
Thirdly, look at price and ask yourself if I didnt own any shares would this be attractive to buy. Now this is a tough one at the moment because the trading action in the stock looks poor (eg finishing on lows, no buy support/volume, crashing through previous support levels etc.). I have been in this game long enough to know that things can change very quickly especially when you are talking about companies holding world class deposits.
SRK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
