Good News & Bad News, page-34492

What’s the “mark” though? I’m bracing myself for $2600 average realised spod price for 5.3%. If that’s the case margins are still extremely healthy.

The shorters are quarter to quarter thinkers. Irrelevant for the long term investor. Even if the quarterly does disappoint, how long does it disappoint for? A couple of weeks? A month? A quarter? Who cares. By the end of the year Pilbara will be pumping out concentrate at a run rate of ~720000 tons SC5.3. An uptick in pricing is likely and then margins get healthier.

If the bottom for SC gives the company $2000 margins, I think that’s fantastic. In a year and a half we’re producing at a million ton plus run rate. This becomes a $2 Billion dollar profit per year if prices stay low. But what if they go high again? (Which I believe they will). Not to mention Posco, Calix, new downstream joint ventures etc….

Let the shorts have their fun. The tables will turn soon enough. They always do.