Cliffs CEO Lourenco Goncalves is back via The Oz:
“Jimmy Wilson was fired,’’ Mr Goncalves said.
“Mr Wilson was the most vocal Australian on how to intentionally destroy international iron ore prices. He is on record with the statements about deliberate overproduction and his lack of concern on the impact that might cause on others,’’ Mr Goncalves said.
“Sam Walsh was told by his board of directors that his fingernails would only support his weight until this coming June.
“From that point on, gravity would play its magic and for Mr Walsh, there will be no more ‘hanging on by his fingernails’ to his job, exactly like I predicted and informed you during our last quarter investors’ conference call,’’ Mr Goncalves said
“We can only hope that these high-level departures are indicators that, going forward, the individuals that are now in charge at these majors will show better common sense and will express themselves in public venues in a more responsible manner, one that’s best for their shareholders, very importantly, for their host country, Australia,’’ he said.
“Coincidently or not, just like last week, both Rio Tinto and BHP announced cuts to their full year iron ore production plans, quickly followed by a similar announcement made by Vale.’’
“Immediately after these announcements, we saw a drastic improvement in the price of iron ore.
“That should help their bottom lines as well as our own, especially in our Asia Pacific Iron Ore business (the group’s 11 million tonne-a-year Koolyanobbing iron ore mine in WA)’’.
Always top notch entertainment but a lower rung for brains. RIO may have backed off or it may have genuinely suffered a set back in its train roll out. But BHP did not cut guidance at all beyond the Samarco blow so that’s just hot air.
Mr Goncalves should enjoy his moment but not blink.
