Lets exam the facts: Over supply of Iron ore; combined with...

Lets exam the facts:

Over supply of Iron ore; combined with China stockpiling and the current decrease demand in steel is dropping the price of iron ore.

Will iron ore prices remain depressed forever, absolutely not? The world still needs ore, China and India require it in abundance. As the smaller mines drop off, prices will increase again, as China's economy speeds up their urbanisation and increases their housing needs, demand for Steel will increase and prices will rise. The likes of BHP, RIO and Vale will need to curb expansion plans at some stage, they will simply not have the capital to keep increasing production at massive losses.

Has FMG reduced costs, yes, are they working to further reduce their costs- yes, will they be able to. Yes

Are FMG increasing production, so they can operate on slim margins, but higher- volume- yes.

Do they have good relations with their biggest customer, CHINA- yes.

As stated in a previous post, I think BHP and RIO are actually scared on FMG relationship with China. If FMG, allowed the Chinese to run their mines, and they became an infrastructure company, and earned royalties, China would be in a position to subsidise FMG, shut down unprofitable Chinese mines, and ramp up production 2-3 fold. This would destroy BHP and RIO iron ore mining business. BHP and RIO know this and they are the ones who are scared. They are ones trying to increase their market share, as they know what they could potentially be up against. Imagine what BHP and RIO share price would be if they weren't actively increasing their market share.

And above all, don't underestimate Twiggy shrewdness and his ability to structure a deal.

Journalists and analysts you options are very shallow, you have failed to look a little bit deeper. I call it, the titanic syndrome.