hi, i was reading thiss in Marcus Padleys newsletter.Whom i believe tells it as it is. Goldman Sachs, They see the iron ore market in oversupply by 2014 and have dropped their iron ore price forecasts for 2013, 2014 and 2015 by 3%, 11% and 9% to $139pt, $115pt and $80pt. They have dropped the BHP target price from by 2% to 4100c, the RIO target price by 9% to 6400c and the FMG target price by 13% to 410c. The downgrades from Goldman Sachs in themselves are not so much the issue as the trend in resources forecasts and recommendations and in particular the iron ore price expectations. The lazy comment this morning is that BHP is going to hit $30 before it hits $40 (now 3455c) and RIO will hit $50 before it hits $60 (now 5866c). One of the catalysts for the downgrade was RIO breaking the golden rule of commodity traders talking the iron ore price down again - Rio Tinto’s president of iron ore operations Greg Lilleyman spoke at a recent industry gathering and said that he expects iron ore price to be pushed lower due to rising supply and softening demand. He said “in terms of iron ore projects around the world, whether they be Rio's or someone else's, inevitably if prices are lower moving forward than the period that we've just come from, they're not going to be easy.”
And i guess gbg will be caught up in this as all the other io miners.
GBG Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
