I agree that commodity prices will come off, as they are already...

I agree that commodity prices will come off, as they are already doing, but i still think they will stay above long term levels. The emerging market story although slowing down is not over. They are not heavily leveraged and have huge fx surpluses that will provide a back stop to growth in the long term. They're is still a significant urbanisation process to occur in these countries, without a huge increase in Iron Ore supply.

I agree the western economies are in some trouble and it will take years to unwind the excesses of the last decade. This will likely drag the emerging economies down with them, but only down to more managable levels of growth.

Strike has the advantage that there operation is going to be very low cost and in large volume. Therefore even if the IO price drops to $50 the project economics are still very strong and still puts SRK at a ridiculously undervalued level at these prices. They will not be a marginal producer, they forecast they will be one of the lowest cost producers in the market

This is not to say that the SRK price wont continue to fall in the meantime, but i am very comfortable holding this one over the long term due to the quality of the project. This why you have the likes of Deutsche Bank, GLG and Gallagher becoming involved, and i would imagine even more once this legal issue is resolved.