hotcopinvestor i have to agree with alot of what you have...

hotcopinvestor i have to agree with alot of what you have said.... in particular AGO is not a high cost producer, we have seen this flashed around several times.. i have yet to see any proof otherwise but the mine at Pardoo was low CAPEX and as far as i can tell from all the announcements ive read its also fairly cheap to produce due to its close proximity to port hedland..... also the fall in the Aus$ is buffering some of the fall in spot prices.. also costs should be falling with the decrease in Oil and therefore diesel prices.. granted this is not as large as it could of been and is probably offset by the decrease in IO prices

with $100m cash in the bank AGO are deffinantly in a position to weather this storm. Also all these production cut backs will ultimately lead to shortages of supply, with the aim to push prices back up. Producers dont like selling their product on the cheap just as much as consumers dont like paying through the nose.. as i have said before i remain bullish on the long term IO prices however in the short term there will be some volitility.