From Bloomie:
“The logic that you keep expanding just because you can squeeze an extra ton out of your machines, applies well to mining juniors,” Chairman Andrew Forrest said in a commentary on Monday as the company reported a slump in full-year profit. But it “is market vandalism and self-harm when industry leaders do it,” he said, without identifying any companies.
…“While we too can make good money on incremental expansion tons, we fail to see any logic in doing so when we lower the value for all our tons we produce,” Forrest said. “When the market turns and does require additional iron ore, we will be there, fast and inexpensively.”
No you won’t. You are neither cheap enough nor swift enough with undeveloped tonnes. They will go to RIO and BHP, who are cheap and swift enough. That’s kind of the whole point.
