Spot iron ore prices will remain over $150 per tonne to 2015, Macquarie says....
Bodes well for IOH if they can move quickly and get ore into production before then - the numbers stack up very nicely indeed. The grain of salt before thinking $$ signs is that the Foster NPV calculations for (say 2015) were an AUS $ buying only 83 US cents.
When this is taken into account the numbers all pretty much even out again. My reason for saying it bodes well over all is that even with a strong dollar we should still be on target for a profitable company.
It gets very profitable if the price stays up for a few more years after 2015, and also if some economies of scale kick in - say if FMG are involved in Iron Valley for example.. ? :)
IOH Price at posting:
$1.36 Sentiment: LT Buy Disclosure: Held
