18%+ iron ore increase means big profits for csm

The iron ore pricing settlement by BHP and RIO will serve as a strong influence on manganese and chromium pricing for CSM.

Given that CSM has lots of A$ hedging in place for three years out, the price increase should make for an absolute financial ripper in 2004/05.

This company already trades at a ridiculously low PE, and ridiculously high fully franked dividend (5.5%).

..and the price increase makes the Fortescue iron ore project look good, and the new JV with RDR look very interesting as well.

I would not be surprised to see CSM go higher, maybe much higher.

My opinion only, of course.

Cheers

Rosco