RBA will reduce base rate today. It implies a greater inflation...

RBA will reduce base rate today. It implies a greater inflation is choosen to save the Australia economy rather than saving mining industry. The domestic economy will be the major force instead of mining only. I still reckon the metal prices are running bear market cos most of the projects were given up for a long time during the last 20 years. However, most of them were re-invested expecting to a further supply to the market. The Central Bank reduce the interest rate to save the banks and economy and it will increase the labour cost. Our dollar is very weak and never found such tumble in 2 months in 20 years. It seems the fund managers buying major finance sector and selling mining sector now.

Our AXO will also face increase of labour cost. LP may do more for the labour interest rather than saving the mining business. It explained why the market changed the direction just only one week after Labour won the election.

The cost of production may be increased which is not favour to AXO. However, being a no-debt company, the trend of interest rate will be an absolute favourable factor.

However, I would NOT buy at this moment. It seems the guys behind are waiting for a chance pushing the price to $0.43 . I could be wrong but I am very confident in AXO in long run.