The November 28 report, "Rio could trample iron minors", detailed the dangers ahead for small iron ore miners, especially those planning high-cost magnetite mines. It went against conventional wisdom at the time but can’t be refuted today as junior iron ore players struggle on the ASX.
Just as tricky times for some sectors of the resources market could be clearly seen last year, so can opportunities be seen in the changed circumstances resulting from the bout of financial jitters gripping world markets since the start of 2008.
It’s the credit crisis itself and the flight of equity capital into cash and bonds that are adding to the appeal of small-to-medium mining stocks, which have moved beyond the cash-consuming exploration phase but haven’t yet reached their cash-generating phase.
ARH Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
