"Our view is a sale of TPI stake is a case of short-term Sale of...

"Our view is a sale of TPI stake is a case of short-term Sale of a TPI stake would reduce financial risk but add cos
decision in a few years. If iron ore prices remain above USD110/t for the next two years, we believe the sale will not be required" (From wilto post, Commsec)

Is a 110 for the next two possible. Yes it is because of one simple little piece of information, that house of holes will never tell you..

"$120 a tonne has become something of a rule of thumb among iron ore producers – when prices stay below this level for long enough high cost mines, particularly those in China, become unprofitable leading to cuts in supply."

Along with the cut in China's import licencing for IO oversea IO becomes cheaper again against the domestic product. This simply makes it harder again for Chinese producers of IO to compete. The long and the short of it is IO will become a more self regulating system with the low cost producers gaining more market share each year. FMG is about to join the ranks of RIO and BHP in low cost production in the next two years. And I am beginning to think like the above from commsec , hell way even sell their TPI if they can manage with the short term pain.

And I suspect FMG is starting to think the same way....what's the rush when they are sitting on golden rail that Brockmans Flinders and Atlas are breaking their balls to get on to.

Read their update, the language even suggests they might not sell. They are no rush and for good reason their forecasts are in the ball park.

"However the level of interest generated has necessitated a longer period of evaluation than previously contemplated."

and

"Based on the current status, if sanctioned, any
transaction is likely to be announced in the September 2013 quarter."

and

"With our strengthening balance sheet, growing cash at bank
and permanent restructure of operating costs, we will only execute a deal that
delivers obvious value for our shareholders.”