sure, high p isnt a show stopper, and with the current supply side constraints it wouldnt be too much of an issue. but it makes the product alot less desirable when the supply demand equilibrium moves back in favour of demand in 3-4 years time when the slew of new projects come online, about the time you would expect fmg to begin producing from this region. blending gives the project a better long term production profile, which weve seen happen with rios pilbara blend (apart from ease of marketing) and bhps stated intent on that front.
in any case iv is very small fry to the big three. the only time bhp/rio/fmg would really stand up and take notice is if some external/foreign party were to bid for ioh. i see any fmg deal along the lines of the bci jv - why would fmg take a backward step in this regard. but is this agreeable to kezza? on the surface, unlikely.
and i would hope that vorster and crew advance bucklands alot further than just as a post script to any iv cashflow.
IOH Price at posting:
$1.67 Sentiment: None Disclosure: Held
