Iron Ore on the improve

The AGM last week was interesting. A question was asked after the boring stuff about Yarram. Appears they have started drilling there and it's only 100km from the port, so should be pretty easy if things look good to do the same run to production that the team has already done.

Iron Ore up to U$104.49 today and looks like the price slide is over and things are on the up. Also mentioned was that the freight price is down U$9/tonne and with the exchange rate struggling to climb through 71c at the moment this is all extra jam.

If you read the FEX Ann yesterday where they quoted their hedge position was A$52m in the money, there has to be lots of upside for FEL too. They already have $15m in the bank, ship two to India and a steady build up will give lots more cash further down the track.