You'd better tell Marius then... cause he has got tens of billions riding on it. Short term, yeah China might run into some issues.
Iron Ore is here to stay. DO YOU REALLY THINK THE REMAINING 7-800 MILLION CITIZENS OF CHINA DO NOT WANT TO LIVE LIKE THE WESTERNERS??
In the globalised world, countries produce according to their comparative and absolute advantage. Australia is the king of Iron Ore for the Asian region.
Remember 70% of GWR's product would be fetching $140/tonne at current contract prices. And with costs/tonne of $35/tonne (maybe even less if they come up with a project of >10mtpa) on a large resource of >500MT, prices can fall by more than 50% and WW would still be economic.
As I have mentioned GWR's ore is PREMIUM product, any such bubble in iron ore will only boot out the no-hopers such as the more expensive magnetite plays or very low grade, uneconomic deposits.
I'll be staying with GWR for the longhaul.
And do you know whats BS, Portman saying they are not interested in taking over GWR. What happens when Portman get taken over in a matter of a month or two by Cl-Cl as been mentioned in the press. CLEVELAND WILL WANT TO TAKE OVER GWR. Then BANG, Portman didnt just take GWR over, Cleveland did!! Just have a look at how many acquisitions Cl-cl are making at the moment. I don't know who Portman think they are joking.
Bring on the resource upgrade, and tell us all what "conceptually" is really there I say, because 125km strike length x 200m depth x 50m width x density of 3.5t/sq metre = 4.37BT according to my Limited Edition How To Create Wealth calculator. Just how much of the rough 4BT is >50% Fe, surely theres some conceptual target a geo can come up with. Just ask Dr Wills over at Flinders & Maximus if you need a hand!! (I hear he has some experience in conceptual targets, he doesnt even need a drill sample and he can also give an estimate on the range of the grading!!) LOL
Still holding and going long here.
GWR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
