fmg rail deal & brinsden blast over-reaction !, page-31

Adding to manxman's post on the economics of iron ore, we can also consider the social/city planning aspects.

There were, and still continue to be made, numerous commentaries about China's ghost cities, with all the attending implications of doom and gloom for China. I believe most AGO investors would be aware of the reports in the media, including ABC, SBS and Al-Jazeera. Unsurprisingly, a poster's made reference to the same in a BHP thread today when BHP sp plunged to less than $32.00.

But reality is seldom as simple as some of the unchallenged hypothesis developed and put forth on the public domain. Google "China's ghost cities" and we get overwhelmed by the volume of content reinforcing a dark view. Then Google "China's ghost cities debunked" and we get a refreshing surprise.

If AGO investors have some time, do give Wade Shepard's China's Ghost Cities series a read on: http://www.vagabondjourney.com/zhengzhou-zhengdong-china-largest-ghost-city/

Wade's engaging and down-to-earth approach covers a number of infamous and alleged ghost cities in China. He gives his reader a better more understanding of China's city planning strategies. Unwittingly and unknown to him, we can then begin to appreciate Ken Brinsden's and his Board's confidence in the iron ore story.

Here's a brief blurb from Wade's:

""We discovered that the most populated country on earth is building houses, districts, and cities with no one in them," began a report on 60 Minutes which aired on March 3rd. The news program’s timeless correspondent, Lesley Stahl, ventured out to the city of Zhengzhou accompanied by the Hong Kong based financial adviser, Gillem Tulloch, and got the low down on China’s ghost city phenomenon.

Finally, I thought, I will see a proper ghost city.

I’d been chasing reports of deserted cities around China since last December, and I had yet to find one. Over and over again I would read articles in the international media which claim that China is building cities that are never inhabited only to find something very different upon arrival. The New South China Mall had a lot of empty shops but it turned out to be a thriving entertainment center, Dantu showed that an initially stagnant new city can become populated and come alive, and I found that Xinyang’s new district, a place called a ghost city since 2010, wasn’t even close to being built yet. The 60 Minutes report served as portent that there are really ghost cities out here in China. Or so it appeared."

GLTA.