The Patersons report has confirmed two things that I always...

The Patersons report has confirmed two things that I always believe:

1. Ebola will not stop the Mbalam-Nabeba Project progressing to production as suggested by some posters in the past weeks. If it's a concern, Patersons would have mentioned it. So no more Ebola please.

2. Although the big 2s are ramping up supply, high cost iron ore miners will have to retreat. Iron ore demand will always continue to grow. So there could be supply deficit in a few years time and the iron ore price may not be as low as now. Also, don't forget SDL's production cost is one of the lowest in the world. So even at today's price, SDL is still very profitable.

From the Patersons Report:

"We have identified substantial upside in SDL from current share price levels and believe that its project will be well timed to enter production during a period of a renewed iron ore supply deficit....."


"....We forecast prices to recover by 2019, coinciding with SDL first production, as higher cost producers exit the market. This bodes well for SDL profitability given the low cost nature of its operations, which are stated to be price competitive with the majors at a US$21/t operating cost and cUS$62/t break-even cost...."