VMS: Riley Mine in TAS / Iron Ore Analysis, page-72

The experts opinions published elsewhere and relevant for VMS holders, DYOR:

1/ "Basically, stocks are trading at record high valuations while commodities, on the flip side, have never been so undervalued. “The setup is in place for a macro pivot in the relative performance of these two asset classes,” Smith wrote in a note to clients. “Comparable conditions were present with the 1972 Nifty Fifty and 2000 Dotcom bubbles. ”He explained that investors will soon be looking to put their money toward the highest growth and lowest valuation opportunities, and that will result in a big move away from the top-heavy stocks that have been leading this bull market into record territory.
“Analytically minded investors will soon be rotating, if not stampeding, out of expensive deflation-era growth equities and fixed income securities and into cheap hard assets, creating a reversal in the 30-year declining trend of money velocity,” Smith wrote. Some popular ways to play the rotation Smith’s predicting would be to go long ... Gold companies, ...(and /or commodities).
Then, the even bigger opportunity, he says, lies in picking the winners on the exploration side.
“To be frank, buying gold or silver is not a contrarian investment position today,” Smith wrote. “There are enough people in agreement with the idea that all government backed fiat currencies are doomed to some level of devaluation through inflation due to the level of fiscal and monetary imprudence and unsustainable debt imbalances in the financial system.”


2/ "A wild card for the seaborne iron ore market is Brazil, and whether its major producer Vale can ramp up production to sate China’s demand. Vale’s forecast 2020 iron ore output of 305 million tonnes is lower than its 310 million tonnes of output in 2018 — the time of its Brumadinho dam accident.
The miner’s Brazilian ore production is forecast to reach 330 million tonnes in 2021, representing an addition to the market next year of only 25 million tonnes.
Market experts said Vale’s lower-than-expected production will leave China having to find at least 20 million tonnes of iron ore from alternative sources in 2021.The Brazil-based miner wants to achieve a production capacity for iron ore of 400 million tonnes in 2022, rising to 450 million tonnes as a longer-term goal.
This lofty goal may appear a pipe dream, considering the company has struggled to return to production levels of a few years ago.
Barring some unforeseen market event, prices for the sought-after reddish ore look well-supported for years to come given its stretched supply.