Mr Andrew Hodge of Wood Mackenzie

I think this clown deserves his own heading, not often do we get Senior Analysts who are so foolish to write such uniformed drivel and then will not even admit they are wrong.

Its important that investors make wise, informed decisions about which companies they choose to invest in. As we all know not all iron ore firms are equal, and not all iron ore receives the same price.
So as investors we need to pay close attention to the location of the mine, the cost per ton which includes transport of iron ore to port and also the type of iron ore and grade that the firm is selling.

Most investors in Grange realise that the mine is located in Tasmania ( Labour cheaper), transport to port is cheap (slurry pipe line), iron ore product (pellets) is the most valuable (pellet premium) and most likely the management are a cut above the average ( Chinese smartest business people, although most Westerners might disagree ).
A higher grade iron ore product is preferable for steel firms in China as the Gov't cracks down on polluters, and the increase in premiums will help cushion the decline in the benchmark price.
This is what is happening at Grange Resources.
China’s crackdown on smog is providing a prop up to prices, but only for high-quality ore and pellets.

"Steel mills are a major polluter and the major pollution they put into the air comes from sulphur."
"Sulphur is a by-product of producing low grade iron ore like red dirt that comes out of the Pilbara region at 50 to 60 per cent contains a fair bit of sulphurous base."
"In order to fix that problem they like to mix in really high-grade product which Grange produces, which has hardly any sulphur in it and no impurities, to blend it in with the low grade product."


The pellet price premium of US$40/tonne or AUD$52 is more than some IO miners are receiving for their fines total.
Grange ships pellets so shipping cost per Fe% is less /tonne ie. less waste product and thus saves money on freight for the purchaser.

The question I'd like to ask is, if Grange investors realise all of the above, then how come a SENIOR ANALYST like this Andrew Hodge of Wood Mackenzie doesn't have a clue.
What does he do at work?
Most likely updating his Facebook page with selfies