Hmmm...definitely got lucky on first shipment but I don’t see this as bad management. A miscalculation yes but i can’t see that happening again. No red flag for me.
The only thing I can find re volume states they will ramp up during the year to achieve offtake volume of 1mil. There is no reason to think that will not happen? Possibly 2 shipments this quarter then increase from there. Seems right.
As for your assumption that IO will pull back...That is a given. In fact I can’t remember a time that a commodity didn’t fluctuate. If your concerned that the margin is so slim that a slight reduction in spot would cause GWR to stop producing then yes you should red flag it. I personally agree with most analysts that IO price will continue to rise and this bull market will last for a few years. So no red flag for me.
Time for my first arvo beer...first of many I should add! Enjoy your weekend lads.
GWR Price at posting:
29.0¢ Sentiment: None Disclosure: Held
