Ann: Investor Presentation , page-7

http://www.theaustralian.com.au/business/mining-energy/chinese-appetite-for-ore-still-sharp/story-e6frg9dx-1226388107450

gives an idea of how ironore prices might go over the next few years. it is related more to bhp, ago etc etc shipping out of aus but the projected prices should apply every where.

'"There was agreement of a high floor price ($120-$130 a tonne) because of the high cost (swinging) of Chinese iron ore supply," Mr Pervan said. "That said, some believed that if Chinese steel prices continued to fall that iron ore would have to follow, which we would agree with in the very short term."

He said iron ore prices were expected to improve this year as Chinese stimulus measures showed up in data and activity.

The bank is forecasting iron ore will average $US152 a tonne at Chinese ports in 2012-13 before sliding to $US133 a tonne by 2014-15.

A survey by Bloomberg released yesterday forecast iron ore prices into China would rise to $US152 a tonne in the second half of this year. It pointed to the approval of new steel mills in China in recent weeks by Baosteel Group and Wuhan Iron & Steel, which were among $US23bn worth of recently approved new steel production.'


several ifs:
transport cost, esp if exporting to china, guinea is atlantic.(so is brazil and it manages)
condition of the railway nearby.
the high phosphorus and alumina as ddzx pointed out.
sovereign risk of guinea.

they have to be able to cope with a low iron ore price.