"On the face of it HIO is collateral damage however it may just turn out that it's the best thing that ever happened".
Yep, I believe it could turn out to be the best thing that happens to HIO because:
- HIO is not a producer yet. It will be in 2024. And we don't want a flood of new mines to be opened in the next 2 years. Big mines, small mines, high grade deposits, low uneconomical deposits, whatever they are we dont want to see them to be opened. The current fall in IO prices is definitely help putting most of them on hold. This is a great thing that can happen to HIO. Yes it is depressing to watch the sp at the moment but what happens right now is very fundamentally important for HIO in the long run, especially after its BFS is completed and the company moves to funding stage in 2023.
- It also give most other steel producing nations the opportunities to build new steel mills and increase their share of steel production and reduce China's influence on IO in the long run.
- If China economy collapses and pull the world's economy down with it. The 1st industry that will get economic stimulus from countries around the world is always infrastructure as always happend during all previous economic crisis. And iron ore will be the first commodity to benefit from those stimulus measures.
Short term pain for long term gain.
HIO Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
