Iron ore in Australian dollars

Some readers have been asking for the below chart, iron ore in AUD since its peak in 2011:

lknkn

A nice little bounce there, not that it’s helping the big miners:

.knk

 

Both Rio and FMG are trading at heavy discounts to their 2011 prices when iron ore was effectively the same price and volumes are much higher now than they were then.

David Llewellyn-Smith
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Comments

      • I don’t see a right shoulder anywhere lol. Just bc you have a left shoulder and the price exceeds doesn’t mean it’s making a h/s. in fact, it looks like we just broke out of a smaller inv h/s in a shorter term scale.

        Remove your blinders.

      • Go to Hell, lol.

        I though you were referring to a shorter term H&S with no left shoulder hence my comment. I can see you;re referring to to the bigger one now.

        Still, that doesn’t excuse your rudenes.

  1. notsofastMEMBER

    People often forget that in 2003, just ten short years ago the price of iron ore was $13.82 USD per tonne.

    Yes, I repeat $13.82 USD. And for the 20 year period before that the price varied from $10 to $15 a tonne and the Iron Ore operations were still making a very nice profit.

    Now the big Iron Ore companies need at least 3 to 4 times this to make a profit from existing mines. New mines need between 6 to 10 times this depending on a number of factors including the quality of the ore body and the extent to which existing infrastructure can be used.

    What has happened in ten short years?

    • Since May 9th, RIO has lost 12% and BHP 10%. Over the same period the price of iron ore in AUD is up 15-20% and the world’s most overvalued bank (CBA) has only lost 3%.

      I find these facts … curious.

      • The banks conduct their business mainly in Australia and New Zealand. That is where their shareholder reside, the shareholders get franking credits, and the dividends in $AUD won’t vary much as a result of the dollar, so the shareholders are unaffected – as yet.

        The miners are a global business with shareholders who are not generally Australian, and their dividends will fall.

        Different eyes.

  2. Obviously the market thinks cba is more supported by the government than is rio/bop.

    That seems to be the key consideration nowadays?