Bulk commodities are worth nothing in the ground (maybe a few cents per tonne if you have some degree of JORC code resource).
Many companies underestimate the issues of logistics/infrastructure and in this case MMX has shown itself to be very good at this.
The other big problem now - how attractive are these assets anymore? China still has satisfactory demand for iron ore but I think this will taper off to some extent by 2015.
MMX will be lucky to get the infrastructure approved by then let alone built.
Truly a horrendous mess which of course someone (largely Chinese) will eventually assist in sorting out, especially if share price has a dramatic fall.
Those additions to the MMX board have really worked out well !!!!!
MMX Price at posting:
76.5¢ Sentiment: Sell Disclosure: Not Held
