Thinks RIO's rejection of the Chinalco offer is great news for SPH.... only served to harden the Chinese resolve to establish an iron ore pipeline of their very own.
Who can blame them?
Climate is perfect for SPH directors to do a deal and bring real value to shareholders. It's no secret representatives of SPH and Minmetals were in Beijiing on April 28th for the China Iron Ore Conference, but very nice to hear Minmetals confirm their interest in Mauritania in the news interview.
No harm in people taking profits on SPH's climb but the big picture as to her true potential is pretty clear from the 12 month chart. From this perspective, the current 'heat' seems modest.
In fact, the last few months rise, though impressive, is, relavtively speaking, a minor uptick!
Plenty of value at current sp of 90c and still very tightly held. (JORC Resource of 2.3 Billion tonnes is an awful lot of iron ore.)
I would expect the steady accumulation to continue and hence the upward pessure on SP will be maintained.
News of a deal is a different story....who knows what SP then?
SPH Price at posting:
90.0¢ Sentiment: Buy Disclosure: Held
