High level observations on the recent IO price plunge, page-7

Thanks for that link Ironstone. Looking at the August 22 contract it has IO at $US 112/ t 12 months out, let's add $US 30 our 65%, $US 40 for the pellet premium = $US 182/t.
Now let's imagine the $A strengthening considerably in that time to 85c ( currently just over 71c)
That still works out to $A 214/t ( currently $A 285/t )or around $A 100/t profit and that's leaving off any premium on the premium that some mention here.

Obviously we can't look into the future only how futures traders see the market, those numbers could be better or worse but he bottomline is GRR has a very large margin to play with
the $A and pellet prices just to end up with a very good profit /t in 12months time, plus cash a healthy cash position.

There is not a lot to not like about our situation, although the last quarter will likely be the best for a while as will this half..

Cherrs Whisky