Iron ore dropping

[mrdobalina]

I agree with this although I don't agree that Rio would be blocked by the ACCC. Why would they care when there are no Australian customers and the global market is so much bigger than these two? If the Colesworth duopoly is OK then this should romp it in.

The ACCC takes a dim view of #1 and #3 merging in the market (the market being the Pilbara). #2 and #3 combining will be ok. They'll be outcry from customers regardless, but less so when the takeover target is close to insolvency.

I reckon BHPB will make a play not long after the South32 demerger.

 

[HiEquity]

what do you think, a targeted MRRT to drive up the cost of production? Everyone but Rio and BHP are toast anyway

A higher State royalty would have that effect but a resource rent tax doesn't work that way - instead it shares the loss of profits with the Government. No profit means no tax with a RRT but with royalties you still have to pay the government...

The market will sort this out - nobody needs to do anything. Governments just need to cut a new suit to fit their cloth - or find someone else to supply more cloth!

 

[Ausprop]

The market will sort this out - nobody needs to do anything. Governments just need to cut a new suit to fit their cloth - or find someone else to supply more cloth!

hmm not so sure, this is not tomatos at the growers market. it's a foreign owned duopoly with ulterior motives

 

[oracle]

only two remaining shares exposed to iron ore
(unless one wants to consider indirect effect through government royalty)

NHW: its such a small position now, doesn't matter.
MCS: still holding, a larger position.

On the side lines.

Transport group McAleese has gone into a trading halt as it reviews the financial impact of Atlas Iron's decision to shut down its Pilbara iron ore mines.

McAleese, which hauls iron ore from all Atlas's iron ore mines to Utah Point at Port Hedland, had expected to generate about 40 per cent of its expected fiscal 2015 earnings before interest taxation deprecation and amortisation (EBITDA) from the miner.

It's not looking good for McAleese at the moment. Full article here

Are you still looking to hold on or will you sell?

Cheers,
Oracle.

 

[redwing]

AGO was around $4.20 at its peak...now

Atlas Iron suspends itself from share trade amid plunging prices

Atlas Iron is stumbling in the face of the slumping ore price, suspending itself from the local share market as it tries to map out a future.

Iron ore slumped over the weekend to a fresh low of $US46.70 a tonne on a key Chinese spot market.

Atlas said it has been surprised by the "extent and the pace of the decline in the iron ore price" which it says has fallen 24 per cent since it released its half-year accounts in February.

"The voluntary suspension is requested pending the outcome of an extensive review of the company's operations, financial outlook, asset sale opportunities and capital structure," the company said in a statement to shareholders.

 

[Ausprop]

"as it tries to map out a future"

who wants to be the one to tell them?

 

[KangaBanga]

Ross Garnaut predicts much lower iron ore price

 

[Ausprop]

I was trying to find something about what the forecast impact of importing all our vehicles will be on the AUD... stumbled onto this year old article which with the benefit of hindsight is really on track...

http://www.dailyreckoning.com.au/a-cold-look-at-australian-car-manufacturing/2014/02/11/

tough times ahead...