This post just goes to show naive you lot really are to think...

This post just goes to show naive you lot really are to think that a company like the downgraded Iluka didn't see this coming and you were right to sell the WIM 150. The commodity bull is resting, shaking out the weak (yes just like AZC) and priming them for a takeover ready for the shift of gear and next leg up.

As we all already know this game is a marathon so short term analysis is something for a professional trader that jumps in and out of one market to the other and crashes and burns when he makes a mistake!

Over the last 10 years alone the middle class in China grew from 10 million to 83 million individuals an eight-fold increase. China’s middle class is expected to expand to 1 billion by 2030 making up a predicted 72% of the county’s projected future population.

The new middle class (full of ambition) will need a roof over their heads and will aspire to have all the mod-cons just like the people of the western world. Iluka and OZC know that only too well, if you believe in China then you should believe in Zircon, it has a future if you care to look passed your own nose.

7.5 million for APG’s 20% of the WIM 150 is peanuts unless it was a forced sale (which just goes to show how small fry APG really is) just to keep your heads above water for another year. The WIM 150 is an asset that will rise greatly in value in the not too distant future and that’s why OZC are fighting like cat and dog to get their hands on it! It costs 1 million to get a contract drawn up in this game so 7.5 million will only spread so far, so don’t count your chickens just yet!

What will APG sell to get you through 2014?

Just hope DCM sells on AZC to OZC with a mother company behind it that can’t get enough Zircon to feed its needs!

Only time will tell, chin up…