El
The difficulty in making an assumption around IO is that the cost curve is steep only at the very end of the production tail. The IO price can drop significantly without losing very much supply volume through marginal producers.
I looked through BHP a few months ago and came to the conclusion that short term the value is very much tied to IO pricing and IO pricing is very hard to make an assumption around. Marginal cost levels for Chinese domestic supply is probably the closest you can get to putting a potential price point on IO going forward.
Agree US shale assets could be very valuable long term once the US economy/infastructure adapts to the reality of a new abundant energy source. Currently the energy is available but the means to harness the benefits of that energy through industry, transportation are not developed - this will change IMO.
I bought a few BHP a couple of dollars higher but my real value point lies around $28 - at this level the IO component is sufficently discounted to allow for any future weakness in the price of IO.
ElThe difficulty in making an assumption around IO is that the...
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Last
$44.39 |
Change
-0.380(0.85%) |
Mkt cap ! $225.1B | |||
| Open | High | Low | Value | Volume |
| $44.52 | $44.68 | $44.21 | $228.3M | 5.147M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 93 | $44.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $44.40 | 13049 | 4 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| BHP (ASX) Chart |