Hi bud- you may not have been around when this argument was...

Hi bud- you may not have been around when this argument was raised… many times by posters who’s posts show an unwillingness to take account of the reality of the GFC ( 2008~ ). Posts were even put up which came off as asserting that crash never took place!

To be sure this has relevance to the thread I’ll remind the forum of a note on the funding side- potential access to Japanese debt is yet another thing that makes this whole deal so compelling ( some of the cheapest debt in the world backed by the world’s third largest economy ).

To our friend’s ’scary’ notes about Vale and BHP?

Sadly for those posts Vale has an extensive library of announcements & one of us found one that outlined their intention to pull back on spending that year precisely because of the global downturn.

The next time any of us watch ‘the big short’ we might just remember this because on the other side of the world a project which BHP & Vale had both taken up 10~% stakes in ( one to develop it, the other to block or profit from the other doing so? ), was put back on the shelf.

Their loss, my & we can safely say many other’s gain.
Thankyou, security default swappers, you made sure my bills were paid every year since investing in Ardea.

Oh look- one of us ( wink* ), found the same note and also another one showing the intent to reduce costs on other parts of their business too!

https://api.mziq.com/mzfilemanager/v2/d/53207d1c-63b4-48f1-96b7-19869fae19fe/b2f27f16-2294-4fd2-9866-a8f41740ead7?origin=1

Whole document provides insight but the last two paragraphs touch on the wider global outlook.

Iron ore ( ever sensitive to global conditions because steel makes the machines and infrastructure that makes the world go round? ), note & again, look at the bottom of the page, for some reason appearing as fine print on my screen:

https://api.mziq.com/mzfilemanager/v2/d/53207d1c-63b4-48f1-96b7-19869fae19fe/4b1538de-039a-4c20-a2b9-8dde44e5bbdb?origin=1

Mud slinging, when that is all it appears to be, is easily defeated. Hopefully our friends remember that in future as its a waste of their time as well as everyone else’s but hey- we can always take advantage of those posts by helping newer readers/investors understand the past.

If we then look to 2009’s reports we can see that Vale wasn’t a victim of the downturn. It was a contrarian & grew its business by investing in/merging assets. Invest when the market is down, holiday when the market is up!