40c, while the dry index is a good measure, one thing that the index wont cover is the need for the chinese to diversify their resource suppliers. Iron at the moment is in the stranglehold of rio, BHP and vaile. FMG will play the same game as the other three. Smaller companies will be targets to supply iron ore to break the monoplly situation. This can be seen in the activity in other sectors by the chinese, let alone the koreans or indians.
China will be the economic powerhouse driving australia's economy and given they have 1.3billion people with proably a 1 billion or more still living at poverty levels there is a lot of growth. Instead of 12% it is now 9%, still pretty impressive. TRF is very attractive target, more so with IFE releasing results.
TRF Price at posting:
57.3¢ Sentiment: LT Buy Disclosure: Held
