Hi guys, Not trying to pour any cold water. However, can I just...

Hi guys,

Not trying to pour any cold water. However, can I just point out one thing: When does BHP ever think that iron ore demand will ever drop? Or for the matter of fact, when does BHP ever think any of the commodities they produce will ever incur a fall in demand. They are just talking their book. Nothing more than that. Even through the credit meltdown over the past 18 months, they still kept saying "stronger for longer".

In the meantime, they had to shutdown Ravensthorpe and incur massive write downs. In addition, they nearly stuffed up the company big time by trying to buy out debt ridden RIO Tinto at the top of the market. How's that for great management.

I own Strike resources by the way. The only reason I own SRK is because I believe it is undervalued when compared to the rest of the sector. 2 potential projects in the pipeline + cash on balance sheet. I don't own SRK because I believe in what BHP says.

I believe China's demand for minerals can grow, however, the rest of the world has to grow too. Although China is able to soak up excess supply, just have a look at the stockpiles for base metals. The only metal stock pile that is not near record highs is copper. The rest of the metals: zinc, nickel, aluminium, lead and even oil have very high stock levels. If China has been actively buying, then it just tells us that the rest of the world still needs to chip in. In the meantime, metal and oil prices have gone up, however, I just put that down to a US$ hedge. Nothing more.

Sorry to be a kill joy, but don't believe in everything the big corporates tells us.

Happy investing.