Iron ore miners fly on thin air!

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The sell side’s misplaced excitement over FMG volume growth and cost reductions I canvassed this morning appears to have lit up the big miners today despite the iron ore price falling. Credit Suisse was joined by Charlie Aitken reiterating his buy call and FMG is up 3%, as well as the big boys nearly 2% (they were up 1% overnight on the LSE). Here’s the relative performance chart:

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The idiocy spreads are stalled:

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The juniors can’t catch the updraft as their cadavers sink ever deeper into a bottomless ocean of cheap dirt:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.