Well do not quite follow the logic of a company being overvalued because it has not taken an ounce out of the ground yet. Most resource companies would make most gains before they become operational and with cost pressures those already fully valued will have the least to gain..in fact may lose value.
Even in the doom gloom commentary we have had there is consistent view that iron ore and coal will continue to be strong for some time yet. Little iron ore is sold at spot and the benchmark price has only just been set, ink hardly dry, so the Chinese must want it badly enough.
So sorry another that cannot follow your argument...or lack thereof.
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
