chinese back buying iron ore - just hit $133!

The CHinese have their cheque books out for Iron Ore again!!!

The Spot Price of Iron Ore quickly hit $133 last night from the low of $117 last week!

Should hover between $130-150 going forward, which gives our miners plenty of profit margin!

For miners like TTY that sell all the ore in the spot market, it will mean plenty of profits and +ve cashflow going forward and allowing them to increase their resource with the lower quality higher cost ore beneath their existing mine!

Even if it costs them $80 per tonne to extract that lower quality ore, they still have $50-70 per tonne gross profit from the sale of it at these Spot Prices and it increases the mine life to 5-7 years!


http://www.businessweek.com/news/2010-07-26/iron-ore-price-jumps-most-in-7-months-as-china-buyers-return.html