Iron ore is for nation building (infrastructure etc) in China and other developing countries like India etc. Not like mineral sands and others which go into consumer goods via paint etc.
US and Europe can go into a recession and drop China's GDP from 9% to 5-6%, China still has accommodation, offices buildings, roads, rail and other infrastructure to build for a very large country that will have a requirement that is much greater than building the coastal cities.
A deposit literally on top of rail and port infrastucture will attract the same sort of Chinese interest that other deposits have. Even deposits like Centrex's South Australia deposits have Chinese backing. The ocean freight, rail and port cost for FMS are a lot lower.
There's a lot of long term upside in FMS - if the IO is there.
FMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
