Hi jojo,I'm thinking that whatever Chinese demands for iron ore...

Hi jojo,

I'm thinking that whatever Chinese demands for iron ore are going to be in five years' time will be most capably met by the massive current infrastructural upgrades and new projects being undertaken by Rio, BHP, FMG, and looking outside of Australia, by Vale and even by the likes of Sundance.

Yes, the Chinese have a current demand for iron ore and for the next year or two it is a sellers' market (and I reckon anyone trying to scaremonger by talk of a "double dip" recession should be strangled) but I think they are happy to buy whatever Atlas can ship without committing to any capital outlay or having to try a takeover bid.

The same as for BHP, Rio, etc, what long term assets would the Chinese be buying from an AGO takeover?

I like Flanagan's talk of an iron ore "sweet spot". He's identified a short term opportunity and hopefully Atlas will make hay while the sun shines. I'd like to trust him (and the whole AGO Board, more correctly) to have a few alternatives lined up for the eventuality of a market saturated by iron ore, by which time the money has gone elsewhere.

Good luck jojo and a pleasant weekend to all.