Iron Ore stocks close to infrastructure are such a bargain at the moment - I'd sell everything to buy more if my wife wouldn't divorce me as a result. I was just reading the RIO announcement about the Simandou deposit in Guinea - they have to build 650K's of rail lines with 21 tunnels to a port with loading docks 11 kilometres! offshore!
They believe they'll then be shipping 95Mt per annum. Conservative cost of infrastructure is $6 Billion but most believe it will come in at double that - $12 Billion.
Giant numbers. IOH deposits will be snapped up soon - especially if we get some good news on Thursday from RIO's yearly profit results - and they have said their mines have been running at full capacity this year. Then we'll see a run in prices for good iron ore juniors - $2.00 on the first rumour - $4.00? on a bid? Just my opinion of course.
IOH Price at posting:
$1.38 Sentiment: Hold Disclosure: Held