I can't see FMG surviving and Vale is also suffering big time. Rio and BHP will use the supply glut to kill off competition and acquire leases and competing mining operations on the cheap. I expect to see FE62 go below $60/dmt. Rio is still expanding and continues to ramp production. It has production costs of $22/dmt and BHP claim costs around the $40 mark.
My guess is there's another 5 years in this shakeout. Gina's Roy Hill mine comes to mind. She has a fairly close relationship with Rio so I'm wondering how this will play out.
Chanos had a big short play on FMG a while back. I wonder if that is/was still in play. FMG 3.03 predicted to go to 1.80 ouch!
My guess is there's another 5 years in this shakeout. Gina's Roy Hill mine comes to mind. She has a fairly close relationship with Rio so I'm wondering how this will play out.
Chanos had a big short play on FMG a while back. I wonder if that is/was still in play. FMG 3.03 predicted to go to 1.80 ouch!