They will be going forward with the Ring of Fire project, CLF will not be building the transportation system and forcing the government to do it. It will save CLF $600 million to $1 billion, which puts the project within reach without taking on additional debt. It also delays the outlays of big dollars for a couple years, allowing them to accumulate cash.
I think the GS iron ore outlook had the biggest impact on all the materials stocks today (right or wrong). The suspension of the chromite program is a good thing at this time. It is far better to have the government put in the transportation infrastructure than it is for CLF to shell out $600+ million. It is more important for Ontario and First Nations to mine the area and if they want to make it happen, they are going to have bring something to the table. With CLF formally suspending the planing, it is now on the government to invest in their future.
As far as iron ore prices in 2014, futures markets have it at $150. How GS comes out with $108 is beyond me.
They double counted their copper smelting to make it appear that copper supplies are high in order to get the price of copper ore down. I would not surprise me if the PMI surveys are the same as purchasing managers are more concerned about securing lower iron ore prices than giving accurate information. It is just the way the Chinese operate and you need to look beyond the survey numbers.
I was really hoping someone would bite on this one, thanks for showing up! Do you really understand what expanding means? Yes, anything over 50 is expanding. And China is making big changes that will lead to further stimulus and infrastructure investments. Maybe if you would have been in touch with real economic news, you would not have lost on that $20.81 short position. The $19.80 long position I took on your stupid posting has netted me a fair profit.
At the time, CNBC was interviewing Ford a representative discussing record auto and truck sales this year. Then the entire market headed up along with the big move in CLF's price and volume. Maybe investors realize the strength in the steel market along with at CLF's current price and 2013 earnings estimates, CLF is at a sub 10 PE.
From the Motley Fool:
"Speaking to a high-powered audience at the official opening of is new global headquarters in Melbourne, BHP Billiton (ASX: BHP) CEO Andrew Mackenzie provided a positive outlook for the Australian mining sector, suggesting that Chinese demand for natural resources may prove to be stronger than currently believed."
Yeah, you can go out and buy some ribeye since you didn't get some venison. I remember our trips to Poughkeepsie when my daughter was in college, we always saw deer between Scranton and Fishkill. I always liked orchard fed deer better than forest or sage fed.
Our problem is not the stock, it is the constant bubble talk on CNBC and the parade of so called experts they have coming across their desk. It is more about DOW 16,000 than it is about CLF.
Most of these analyst are basing their iron ore projections on production increases from RIO and BHP in Australia. What they are not accounting for is these producers are selling other assets around the world, so they are just shifting production to their low cost mines, not really producing more iron ore. It is in their best interest to keep iron ore over $130 and they have the market position to achieve it.
What kills me is the analyst that have projected the price of iron ore in 2015 when they can't even get close projecting 6 months out. That is why the market really needs to look at the new Chinese futures exchange.
And yet the DaLian exchange has the heavily traded May contract up $1.90. I have noticed the two don't move in lock step with each other.
price for iron ore. They state the May 2014 contract is heavily traded. The question I have is Platt's spot price is in the $137 range while the May contract is over $150, why would the base it on a price system that is more? Does it put to rest those analyst that project iron ore is headed for $80? There is a lot of volume of future purchases at $150, do these users know something the analyst are missing?
Born an raised in Oregon, surfed Pacific City, white water rafted several Cascade rivers, raced dirt bikes in the Coast range… it is a wonder I survived all the stupid things I did when I was young. Thank god I had daughters that were into Barbie's and did not follow in my foot path!
This is all true, but what I can't stand is the media allowing someone like Ichan to come on to make negative calls on the market without disclosing his short positions or his low target prices. If you are going to use the media to advance your position, there should be full disclosure. Ichan is the king of using the media just like he took Ackmann down with HLF and CNBC loves it.
Well, my back yard is in Nevada but my back property line is the CA boarder with the Carson ridge and three 10,000+ foot peaks.
What were you hunting? I have deer, bear and cougar that come through my backyard, but I love hunting birds… they are lighter to carry!
Good 4 part article in the Republic of Mining, Ontario is taking the transportation issue head on.
"On Nov. 8, the Ontario government announced the creation of a Ring of Fire development corporation that would bring together all the private and public stakeholders, including the federal government and First Nations. The goal of this corporation would be to sort out the competing infrastructure proposals and help build, finance and operate the strategic transportation route(s) into the Ring. So, I assume the port authority concept with the involvement of the ONR would definitely be one of the proposals on the table."
You have to pass through 2 to get to 3. And when you are talking about China, the law of large numbers is coming into effect and 8% growth is more than the 10% growth you had 3 years ago. And if you pull up a chart of the US economy, you will find on average 4 years up to 1 year down which puts the odds on expansion greater.