Back on the topic - not on Super Funds... ;)Latest issue of...

Back on the topic - not on Super Funds... ;)

Latest issue of Resource Stocks magazine has an excellent article on iron ore. THey point out the huge differences between the Pilbara and the MidWest, for example, both in quantities and in type (magnetite, haematite, etc).

They also suggest that a lot of the MidWest companies will HAVE to consolidate, either by takeover from outside interests, or by merger between themselves, in order to compete with the Pilbara companies.

They go on to show that the leading companies, in terms of lowest cost per tonne, are MGX for the predominantly haematite outfits, and GBG for the predominantly magnetite ones. They then suggest that MGX will probably lead the way with mergers and consolidation. GBG is also right up there and may well play a big part in consolidation of MidWest companies.

One thing to bear in mind when reading Resource Stocks magazine is that it comes out every two months (I think) and the lag time between what is written, and NOW, is considerable. And we know how quickly things can change.

I'm happy with my GBG now that I'm back in at 1.60, and my aim would be to hold it for the longer term. But if it spikes up parabolically like it did a couple of weeks ago, then profit-taking may well be on the cards, followed by buying back in when it settles back - just like I did this time around.

Resource Stocks magazine should be available at many newsagents, but not all. Recommended for all who are interested in the resources sector generally.