nectar38 - What do think the chances are of most smaller iron ore companies ever getting their projects to the production stage? There must be 50 or more iron ore juniors, many with a resource of 1billion tonnes and a mix of DSO haematite and magnetite looking to get to production.
Some will get to the production stage, many probably wont or will be swallowed up by a larger player. Most juniors have a JV or off take agreement with Asian or Chinese partners so it looks like the iron ore consumers are looking away from BHP and RIO and looking to secure their own supplies which might increase the chances of getting to production.
With a large increase in supply in the next 3 or so years when a heap of projects look to get to production stage, the price or iron ore will most likely drop quite a bit from its current levels.
LCG Price at posting:
7.7¢ Sentiment: None Disclosure: Not Held
