Hi NutmegWS,I have no doubt we will be seeing new highs, when??...

Hi NutmegWS,

I have no doubt we will be seeing new highs, when?? I wish I had the crystal ball but would expect within the next 12 months.

Here's some ramblings for IO and Champion -

- Phase 2 comes online in April/May, doubling production. Dividends to follow shortly after.
- Decarbonisation will drive a big shift from Blast Furnace Steel production to Electric Arc Furnace (EAF) production.
- China steel production will drop as more greenfield EAF mills are constructed globally, US Steel as an example, and manufacturers will be seeking 'green' steel.
- EAF 'green' steel production relies on Direct Reduced Iron (DRI) and our product will become more highly sought after, we will also benefit from lower shipping costs.
- With steel producers making a massive investment into 'green' steel production the smarter players will recognise the need to lock in its supply of high grade IO. Potential takeover?
- Current IO miners with Lower grade IO will need to rely on either continuing sale of its product for dirty Blast Furnace production, or blend its product to achieve a higher grade (blending with....our product?). Potential takeover? Disclaimer - I have looked at other steel production methods and MOE is one that appears to only require low and medium grade IO.
- Carbon emission footprint will become more transparent throughout the entire supply chain of a product and consumer purchases will consciously take into account carbon impact. Ideally also rewarded through lower purchase price.
- Any potential takeover will have to be on friendly terms and take into account current capital expenditure (circa 5B AUD) in addition to future earnings. We are printing money every day and I can't see that changing for a long time.
- If we just continue as is, follow the strategy, build the business etc. then dividends 2 or 4 times a year for the next 20 plus years is fine with me!

Best regards,
Thumb