RE:RE:RE:RE:Iron ore upI'm here for the doubling of production as well, but the price of 65% iron ore is a "Key Driver" of profitability, earnings and share price. Therefore 50% more tonnes this year does not necessarily translate to 50% more earnings compared to last year.
There are people (Dave Llewellyn-Smith macrobusiness.com.au) who have suggested P62 should be $70/tonne this year based on supply/demand fundamentals. I'm counting on RIO, FMG, Vale to 'manage' supply to prevent that kind of collapse.
I think P65 iron ore will be between $120 and $140 this year and Champion will do $0.80 to $1.00 in earnings this year, for share price $4.80 to $6.00 (6x). That's why I think the 69% upgrading plant is essential to grow EPS to the next level.
If people see P65 pricing at $150/tonne and above this year, please say so, I'm very open to hearing that kind of optimism.