Try look into future NOT past. If GBG still haven't develop their project, do you think it will get funding in 2014? IMHO, NO!
If Sino CITIC did not sign with Clive P in 2006 (now the project cost $8B), do you think sino will sign in 2014? IMHO, NO!
At low iron ore price only absolutely the best quality project will get funding eg Roy Hill. Even Roy Hill took years to get funding.
Lower quality projects eg FWL will need iron ore price around $250+/t IMHO to get funding. That could be 20 years away for iron ore to get to $250+/t.
If petrol price is cheap, people will not think alternative energy eg hybrid car. If iron ore price is low (eg $80-100/t) people will not want new productions.
Sino CITIC signed that agreement at that time Chinese government (own 50% of sino) was not happy with BHP, RIO & Vale.
FWL is trying to develop MPI and extremely low grade iron haematite with low production rate. IMHO it is not competitive unless iron ore price is $250+/t.
Just IMHO, your money your call.
LCG Price at posting:
1.8¢ Sentiment: None Disclosure: Not Held
