http://www.iol.co.za/business/news/outlook-for-gold-and-iron-ore-is-very-good-1.1774255#.VFocQslh71U
A lower iron ore price is a blessing in disguise for SDL since SDL would be one of the lowest producers after BHP and RIO (Source: SDL presentation). If the above article is correct that many high-cost-producers in China will close down by end-2015 due to low iron ore price, it will increase SDL competitive and comparative advantages as one of Top Iron Ore companies in the future.
Extract from the above article:
"In October with iron ore prices at $81 a ton, about 70 percent of Chinese mines operated at a loss.
“We expect about 30 percent [of mines] to close by end-2015 [the rest are either state-owned or steelmaker-owned with a few able to up their efficiency],” said Lamprecht"
Good luck to SDL long-term shareholders. Welcome to Wal King as new Chairman of SDL.
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