Ding Ding Ding Ding Ding Well if you didn’t hear it so far...

Ding Ding Ding Ding Ding

Well if you didn’t hear it so far today, the bell from Iluka was loud and clear.
Iluka announced that it is suspending for 18-24 months the mining and concentrate production activities at its Jacinth-Ambrosia operation in South Australia.
In terms of the resource cycle this event is so important for MDL.
The mining industry since the China boom started has been expanding capacity year on year. Finally, when the boom stops and the commodity prices slide back there is a delayed reaction of major producers to cut production. We have seen it in coal, thermal and coking, nickel, copper and soon for iron ore.
Today we see it with zircon, rutile and ilmenite.
A cut in supply will eventually reduce stocks and the price will then start to recover.
This is the sound of the bell telling us prices will recover.
I think MDL can hold on and it will come out the other end much stronger, even after a near death experience.

But there is no denying MDL has been rolling with the punches and ended up on the ropes.
I think of MDL as Ali and Iluka as Frazier circa October 1, 1975.
I was a young lad then but this is a great a description as I have ever read.

They dubbed it the, “Thrilla in Manila,” and it would live on to become the greatest fight of all time. After it was over Ali, the winner, said it was as close to death as he’d ever been. He said he couldn’t go on any longer, but that Frazier had just given up before him. He was so beat he asked his corner to cut his gloves off. As this fight progressed everyone assumed it would go the duration and end in a decision after 15 rounds. Frazier and Ali beat the hell out of each other for the entirety of the fight. There was no more mystery between these two and it was a true war. Even in the 14th round, after Frazier’s corner had thrown in the towel, Frazier was heard to say, “I want him, boss.” Ali would go on to win the fight, but many wonder what would have happened had Frazier’s trainers let the fight go on.