Pellet Price, page-504

I'm not sure if this has been posted before but Shagang's environmental credentials are a little under the spotlight.  Maybe this is why export volumes are slow.

https://www.ooskanews.com/story/201...-criticized-environment-ministry-over-yangtze

Rain could be a problem ... I think I seen 53mm in one day ! ... but MTD rainfall is not too out of tune.  Nor was June ... in fact lower monthly than historical average

No response from the lovely Michelle.  Sad.  My question to her was did she think the market was fully informed given a then market cap of around A$180m and net liquid assets of A$240m +?  

Their arrogance I think is second to none ...  Because the activities of the company are transparent ie can see volumes, can see prices and cost structures are by and large fixed, a lot of usual invisibles are visible.  But where the news flow fails is that seemingly the companies fortunes are at the behest of its major shareholder ... Shagang.


I'm going to push this a little bit ... the lack of shipments in July is of concern as is trading something like 30% below liquidation value ...  current pellet IO prices suggest strong demand beyond Shagang and they really do need to get a minimum 2 away per month ((160kT) IMO to have any chance of maintaining a sustainable operating margins ...

Have a great day