RIO eps going down 50% according to this - What are you doing...

RIO eps going down 50% according to this - What are you doing about it shareholders ?

Iron ore to stay at $45 for a year: Credit Suisse

about 4 hours ago | 9:51am | Chris Kohler

Credit Suisse sees more dark days ahead for the beaten-down iron ore sector, forecasting a price of $45/t for the next 12 months.

The commodity has given up around 60 per cent of its value in the last year and dipped below $47 per tonne earlier this week – its lowest point in the spot pricing era.

“We now forecast -2 per cent China steel growth in 2015 and muted growth from 2016 set against a market share/price war from the low cost major iron ore producers,” research analysts Paul McTaggart said.

“We make the largest cuts to iron ore prices and now forecast a 12-month period (H2/2015-H1/2016) of prices at $45/t, but note the ever shifting cost curve and potential stickiness of marginal supply make picking a price floor and length of downturn a challenging task.”

Major Australian miners will be hit hard, according to Credit Suisse, with earnings per share expected to fall 36 per cent at BHP Billiton, 50 per cent at Rio Tinto and 11 per cent at Alumina.

“Fortescue is expected to be loss making at the NPAT level in fiscal 2016,” Credit Suisse said.
Credit Suisse also sees the Australian dollar hitting US72 cents over the next year on the back of commodity price weakness.

“The team maintains their bearish view on the Aussie dollar, forecasting the AUD to further depreciate to US75 cents in three months and US72 cents in 12 months, driven by the falling commodity prices.”

http://businessnow.theaustralian.com.au/