Tips aren't my thing but global conditions aren't favouring...

Tips aren't my thing but global conditions aren't favouring commodities at the moment and the long awaited dip in iron ore prices is now within sight on the horizon (according to those who make the forecasts). Not good for IOH.

Additionally, in the eyes of potential buyers this would create some doubt now about whether FMG will take up that Iron Valley option... Add the lack of clarity around the royalty structure and it doesn't help give holders (or buyers) any confidence. We have no idea what IOH will earn from each Mt of iron ore even if FMG take up the option. Can't blame holders for bailing out really, there is just not enough clarity around these things yet.

With interest rates having fallen so far and more cuts predicted, ASX stocks paying high (FF) dividends will continue to surge as the big money seeks a low risk yield. Millions upon billions of dollars flowing into those high yielding stocks and it won't stop until interest rate cuts pause and/or rate rises are forecast.

I've hedged my portfolio firmly in that direction, but I will buy more IOH when (not if) it reaches a price around it's cash backing.