5 cents, page-6

I think one thing to remember is something an old pal of mine reminded me of ..(he's been trading resources since the seventies) ...

... with regard to offtake agreements, the companies FWL is dealing with are not concerned with what's happening now (poss recession, IO demand falling, steel decline etc). They're concerned with not having to scramble for resources when everybody else is - and that means getting resources locked in BEFORE everybody else.

They're thinking a year ahead to when the credit markets have calmed, China is resuming it's development, as well as India - and five years ahead to the world recovery, when they have to be ahead of the curve ... so steel companies will already be looking ahead to locking in material supply, so when the recovery comes they'll be able to capitalise on it.

Which fits FWL's timeline ... as well as a few other IO companies ... so I think the market might be surprised by a series of off-take agreements being locked in over the next few months, from small companies that are currently being written off by investors.