you are spot on kwaidan1. Its not about having the largest resource, or best quality. Its all about generating revenue, cash flow to fund further operations(building of spur lines, higher production ""centres"" in the words of BHP).
having a 1bT resource or a 500mT resource is purely academic. No point in having a 500mT resource if you cannot sell it in the next 3 yrs. The iron ore price will average good levels from 2009-2025 (15 yrs where supply will find it tough to meet demand) the main yrs of china boom. Like all booms, it will plateau one day once construction of most things is complete. So you have to take this into account.
in a valuation sense, the best values can be achieved if you are selling in the next 1 or 2 years, anything really doesn't matter how much mT, as these companies market caps are still <$500m dollars.
UMC is also close to FMG current cloud break line. I see a deal to sell to FMG.
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