IO below $55p/t, page-8

Hi Westcott

I actually think it's not all bad if the iron ore price falls further since the current $50s level is believed not doing any good to SDL anyway. If the io price falls sharply and quickly, say within days or weeks, most of io mines are losing money, including Roy Hill and will have to close soon. Of course Roy Hill will survive but not the high cost low grade mines. By that time, the big boys have achieved what they wanted to achieve and can switch their strategy ASAP by cutting production because their profit margin also suffers with $50s or less level. When that happens, io price will have a V shape recovery. China will scream at the big boys but investors will rush back to the io sector again.

Just my thoughts.

Cheers.
Pikapika