Iron Ore Price, page-1849

I think I have misled you with my simplistic reply. It should read BHP RIO can keep expanding their supply while FMG cannot.

RIO made a blunder "bitter pill" defense buying up Alcan. They survived though the Bal Sheet was stressed at one stage and they got the cap raising away. I was fortunate to partake in that raising. Even BHP in the early nineties were also stressed digging up IO at a small price. The lesson is that if they followed the big boys discipline of looking for the Tier 1 assets, then it is all about surviving the bad times. Simply put FMG was just punting on the IOP rally but never really had a plan for low IOP survival. This has nothing about bias or Twiggy hater.

Have a look at the number of casualty in the gold sector with the marginal producers riding the gold price exponential rally and never once saw the gold price collapse? I think it is more like following the herd mentality in thinking that it is different this time mentality and never planned for low prices. The examples is the same in the Zinc exponential rally and the list of casualty. Coal same destruction. Do you reckon there is a link in the boom bust mentality of the CEOs' running these companies? Or do you reckon that they should all blame manipulations of the commodity prices?