Price of Iron Ore, page-722

What a year we have had. This time last year IO prices were around $US90/t and today they are …….. around $US90/t!

In between we had a mountain and FEX took advantage of it both in sales and now the hedge. The way the management team responds to the current environment over the next 2-3 months will be very telling. A whole lot of extra shares which are going to be worth as much isn’t going to make a lot of difference really. What we need to see is how they will increase Enterprise Value and maintain income levels at a better than expected level.

Agree with the sentiment about reducing costs but also they need growth not just get more efficient if they are to survive in their part of the industry. They are not a Tier1, don’t have a railway, don’t have massive reserves , etc. so they need to play to their strengths. For example, with IO prices so low can they pick up someone or something which they can use their start up skills to advantage.