The example you use is flawed on quite a few fronts. I do agree - that there is risk involved in mining shares. That is why it is imperative to do your research properly. As for the availability of ore (im guessing that you are in the financial field and quite young given your chosen nickname of snowboard) check out the video on the Grange resources website as to the availability of iron ore. As ive said many times.....iron ore is a finite resource and has value. There may be issue with the discounts on low grade iron ore at the moment but many in the industry have already said that they expect that gap to close. I believe that low grade may cover a wide variety of grades from 58% down. To me it is not logical that ore that is only 4-6% below a 62% fe should be hammered by such a large discount.
If you want to think about an interesting analogy - do your own research and find out how large the Atlas Tenement holding is in the Pilbra - whether that land has been fully explored and the full extent and value of those commodities identified. If you knew the potential of those commodities in the ground / or that those valuable commodities may be there would you sell. Our company has provided maps regularly of where they believe resources to be - thus far. It is the commodities in the ground that allow the businesses around it to flourish. No commodities - no need for bulk haulage - no mining or crushing company - no need to port facilities.
The mine at Mt Webber is fully operational and functional. Corunna Downs and McPhee Creek are nearby and I believe a fair amount of work has been done obtaining approvals etc. The Webber mine is relatively new and fully operational and it has been mentioned previously the whole three contain over 50% lumps which attract a premium. And as MIN resources mentioned - Atlas has a valuable workforce.
As for non profitable - that opens up a range of issues. I have an opinion on those based on my own research but don't feel the need to expand on those at this stage.
To help with your research you may find this article interesting.
