Pete11 take a few breaths , BHP is priced where it was in...

Pete11 take a few breaths , BHP is priced where it was in 2006/07 so i would call that a spec stock as well. If our pricing comes in somewhere around $50 then we are in the top 50% quartile for ore fines currently used by the Chinese.

Forecast for I/O is $90 by 2018 so we would still be earning good money if we are producing 5mt by then. We have cash and good deposits and large neighbors who would like to consume us.

http://www.bree.gov.au/documents/publications/req/REQ_MAR2013.pdf

"Over the medium term, Chinese steel producers are expected to increase their reliance on imported ore due to declining ore grades of domestic ores, an increasing concentration of
steel mills on the eastern coast with easy access to ports and efforts being made to increase the average grade of steel produced in China (which requires higher grade ores, such as those from Australia and Brazil). Although projected to increase its reliance on imports, China aims to
have around 40 per cent of its imports supplied by Chinese owned foreign projects by 2015.

From 2014 to 2018, China’s imports are projected to increase at an annual average rate of 5 per cent to reach 966 million tonnes in 2018, accounting for around 65 per cent of global imports.