I have no opinion or prediction of what the Iron Ore price will do in the future, however, I know from simple theory that when you plan to mine something in the future, you are effectively "long" the asset, in this case Iron Ore.
It is not possible to then, hedge against some of the volatility in the Iron ore price using Iron Ore Short Positions? I am not sure exactly where you would do this, or how much you would hedge, but doesn't it at least seem reasonable to lock in some Iron ore at the current prices?
Would be interested to know some more knowledgable peoples opinion on this.
SDL Price at posting:
36.5¢ Sentiment: Hold Disclosure: Not Held
