GreenTint
It was 2.5 weeks last time the spot went under $100,
however this time the problem is over supply combined
with lower demand.
The over supply is a new phenomenon and is likely to
continue for a while and the low prices for steel in China
and the large port inventories are mostly going to keep
the pressure on spot for sometime to come!
ARI's profit is completely eaten away by D & A and by debt!
If the IO price was to continue to slide to $80/dmt and stay there as Goldman Sachs predicts, then ARI is likely to go out of business and the share holders will lose their entire investment!
IMO this is why the share price is going to hell!
If you have been following the Iron Ore futures lately you would notice that prices which have been relatively strong for later in the year have now fallen away.
It is not a good time to invest in Iron Ore miners!
Last time the share price went to 55 cents they got a take over offer for 75 cents which was highly conditional, they probably won't be so lucky this time around!
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