Iron ore - Excellent pricing powerNAU is mainly exposed to the iron ore market. The pricing power of this branch of the mining industry seems excellent where Companiha Vale do Rio Doce (CVRD), Rio Tinto and BHP Billinton share 70 % of the global iron ore market. For 2007 CVRD “on behalf of the industry” have agreed with the largest Chinese steelmaker a fixed price level for iron ore for the next 12 months from April 1st. According to the below linked article from Financial Times (ft.com) “Iron ore producers 'will be the new Opec”. Just now it even looks like the “our industry” is stronger than OPEC in “dictating” prices! OPEC have a 40 % market share. It looks like there are huge entrance barriers for newcomers in the iron ore industry. Partly because new iron ore resources aren’t easily available and therefore much more expensive to exploit than historically. If I haven’t misinterpreted the situation, NAU are in an unique situation because they have access to resources which possibly are the cheapest (measured as investment per iron ore unit) among future global new iron ore mines.
The pricing power of the iron ore industry is promising for future NAU-profits and -valuation!
https://www.ft.com/cms/s/7dd2b31e-af3d-11db-a446-0000779e2340.html
Links to NAUR-trading in Oslo (15-20 min’s delay):
https://hopey.netfonds.no/ppaper.php?paper=NAUR.OSE
https://hopey.netfonds.no/ppaper.php?paper=NAUR-R.OSE
:-)
delta
(ps! sorry because my English could be better)
(ds! I haven’t found any edit-function here to adjust my postings later)