Everyone knows the dominant producers new marginal cost of production. Customers will pay a a given percentage more than the marginal cost of production for that iron ore. And that is precisely why there is no future for the minnows.
IO down overnight, futures in final quarter are $50.
Don't worry about the economics, worry about the non-systemic risks of investing in something that has a proven record of mismanagement. What's to stop another 40 pointless acquisitions, more puffery to deny a takeover when things are good and a company where "I" and "Me" are the only tenets of the corporate culture.
AGO Price at posting:
3.5¢ Sentiment: None Disclosure: Not Held
