Concur with all posts re todays announcement. A great upgrade with more to come. I've always thought that Bucklands would at least be another Iron Valley - it should go mighty close.
Aren't we just a victim of timeing - new taxes, hung parliment, price drops, world economy.... Imagine the share price had this announcement been made 4+ months ago - $3 easy.
Anyway, look to the future.... More upgrades to come so we should exceed that magic 500mt figure.
Did anyone else pick up on the 'HeliRig Diamond Drilling Rig' comments? Wonder what the cash burn on that is? Sounds pretty extravegant and expensive to me. Are we trying to hit a deadline or something???
Superwealthy, i'm holding off until parliment (and consequently a hint as to the future of the mrrt) is resolved. If the price is down at $1.20 - $1.30 at this time, then i'm certainly in to pick up some more. It's a steal. Allow for a valuation of say $80t (conservative), that comes out at around $2.85. Yes, a bold move to buy in to what looks to be a deteriorating market, but you would have to think a reduced takeover price would be extremely attractive to rio, or someone else.....
Thought the article below was relevant and of interest, although not great news for the short term.
FYI.
Cheers, Mac
Source, Business Spectator. 25 August 2010
Mining giant, BHP Billiton Ltd has signalled a looming slowdown in global steel-making raw materials markets due to overproduction of steel.
"With global steel production running ahead of real demand in the quarter ended June 2010, we expect output to soften from the record highs achieved in April this year," BHP said.
"This will impact near-term demand for steel-making raw materials. However, the fundamentals remain strong in those commodities, particularly iron ore, where there is a lack of low cost supply response expected over the next one to two years," the world No. 3 producer of iron ore said.
Each $US1 a tonne change in iron ore prices over 12 months adds or subtracts $US85 million from BHP's bottom line.
BHP chief executive Marius Kloppers later told reporters China's coal and iron ore miners would be among the first to feel the brunt of a drop in demand for steel-making additives, given the country's high production costs .
Iron ore spot prices in China fell on Wednesday as demand for the steel-making raw material remained sluggish in the world's top consumer amid abundant steel supplies.
Imported ore with 63.5 per cent iron content was quoted at around $US155 per tonne, cost and freight, down from $US157 on Tuesday, according to Chinese consultant Mysteel.
No. 3 Australian iron ore miner Fortescue Metals Group this month warned iron ore miners need to brace for a drop in iron ore prices to around $US100 a tonne.
IOH Price at posting:
$1.36 Sentiment: Buy Disclosure: Held
