Hot tip - Roxby Downs

[strongy1986]

Roxby downs is a bit of a disaster zone at the moment

Yields are below 5%, I think a price crash there is on the cards

To justify towns like that you really want to be looking at 9% or over for yield

If your looking at iron ore make sure it is hematite and not magnetite. Hematite is much more economical
It will happen in SA just need some decent infrastructure (port)
to make everything more economical

 

[knightm]

If your looking at iron ore make sure it is hematite and not magnetite. Hematite is much more economical
It will happen in SA just need some decent infrastructure (port)
to make everything more economical

The middle-back range has hematite I believe.

 

[TMNT]

So for
My education

What happened here

It was touted as the next biggest thing with listings selling in minutes

was the're an announcement that completely wiped out the area??

or is this completely expected and normal for one industry mining dependant towns that had nothing going for it before any speculative announcements?

 

[tambourineman]

So for
My education

What happened here

It was touted as the next biggest thing with listings selling in minutes

was the're an announcement that completely wiped out the area??

or is this completely expected and normal for one industry mining dependant towns that had nothing going for it before any speculative announcements?

BHP mothballed ODX .

 

[Waldo]

So for
My education

What happened here

It was touted as the next biggest thing with listings selling in minutes

was the're an announcement that completely wiped out the area??

or is this completely expected and normal for one industry mining dependant towns that had nothing going for it before any speculative announcements?

There was a significant amount of investor speculation on the expansion I believe.

Having said that, the other major impact was the very high housing shortage. People in town were buying simply because they could not find somewhere to rent. That has now changed - with the new accomodation built for the expansion ('pre expansion' capital spending as part of gearing up for the big announcement) & a large number of jobs being lost in town means the vacancy rate has sky rocketed. BHP is also releasing private rental properties as the leases expire (I believe) as they have an adequate supply of company houses relative to their needs. The other week there was another announcements of further job cuts - once these feed through into the housing market (due to home owners/renters having to leave town as there is no other employment around), expect the housing market to take another little hit.

Having said that expansion planning/ect is still occuring (although at a greatly scaled back rate).

My short answer for the reason: major drop in demand