Price of Iron Ore, page-223

*** in conjunction with my earlier post ***

Free trade agreements, price of IO, changes in available supply and demand as markets, economies fire up... the landscape is going to change.. “fact”. Some good, some bad but we have the comfort of hedging 45% of our production for the next twelve months affording us time to adapt to new evolving market conditions which I suspect will be favourable to both Australia and FEX in particular... New customers, New Markets, New Demand..........Eggs in more than one basket creating a little healthy competition for all concerned.... hedging price 45% of our next twelve months production would have been based on solid financial information by experienced professionals, these numbers were not just plucked out the air and it is unlikely they were agreed anticipating lower prices by the third party....they want profit as much as the next organisation

My view is demand will be high for the next 3 to 5 years minimum for Australian IO .. thereafter too many external factors to be considered long term....

Make hay while the sun shines and in the interim bank a few Dividend dollars

Good Luck All