what's going on, page-26

horst the facts are: iron ore prices have risen to $170 a tonne, near a two-year high. Many observers believe that prices will rise in 2011 above $200 a tonne.
Citigroup Inc. raised its metal price forecasts by as much as 20 percent for 2011 and 2012. Copper, coking coal and iron ore will be the big winners because of supply constraints.

Even with a lower production than we'd all like, these clowns at TTY are making good money and the debt should be cleared over the next few months.

I'm the first to agree that they not the smartest in the business, but they are producing and IO prices have reached a record high, with a possible 20 to 25% further price increase to go.

The contract price for next year is already set for a 7 to 8% increase. The situation in India and now the freight increase of 4% by the Indian railways WILL force the IO price higher.

With a production of 2 million tons pa. will result in AUD$120 million profit. ( good but not expected)

With a production of 1.6 million tons pa. will result in
AUD$96 million profit. ( will be closer to the mark)

ie. PE of 1