Iron Ore Price, page-1912

newswire FYI, always more expensive to raise fresh funds when on negative watch,  which in most cases turn out to be a downgrade.

maybe FMG should do a raising now to secure its future in the face of this current imbalance (savage oversupply and falling demand).  they should take advantage of 1.78 being paid for its share price which is sky-high on a simple valuation basis considering the price of the commodity, its margin and debt levels, but most importantly the fact that it has stepped away from future increases which is what a miner uses in response to falls in its products.

nice little bounce in the headline commodity, but eroded by the increase in oil.

FMG = Newcrest mining 2012, it has many changes that it needs to make imo

Anyhoooo Newswire FYI,,,,GLTA

DJ S&P Cuts Iron-Ore Price Forecasts, Warns on Producers -- Market Talk
  10:59 EDT - Standard & Poor's warns of "negative ratings actions" on
eight iron ore producers after concluding that "the severe supply and demand
imbalance in the iron ore market could continue for the next two years." The
affected companies: Anglo American (AAL.LN), BHP Billiton (BHP), CAP (CAP.SN), Eurasian
Resources Group, Exxaro Resources (EXXAY), Fortescue Metals Group (FSUGY), Rio Tinto
(RIO) and Vale. The problem has been caused by increases in supply, softer Chinese demand
growth, and "the slower pace than expected of displacement of high-cost
producers." Prices have been further deflated by falling energy costs and weaker
currencies in iron-ore producing countries. S&P cuts its outlook on iron-ore prices
to $45 per dry metric ton this year and $50/te next year, both previously forecast at
$65/te. ([email protected])





  (END) Dow Jones Newswires
  April 13, 2015 10:59 ET (14:59 GMT)
  Copyright (c) 2015 Dow Jones & Company, Inc.
Tuesday 14 April 2015 00:59:00.000 AEST