From The Australian comes Fortescue CEO Nev Power:
“Our confidence in China as our primary market remains strong…While we are going through something of a low spot in the iron ore price this year, the fundamentals for demand continue very strongly…There has been an overrun on supply but that too will come to pass and we’ll see the continuation of strong demand for our products into the future.”
Honestly, that’s not going to cut it any more. Urbanisation is so yesterday, supply glut is so today. FMG is still fighting off its terminal support line as I speak:
Late yesterday the outgoing chairman said there’d be no diversification, at the AFR:
…Graeme Rowley says the miner should “stick to its knitting” and ignore the temptation to diversify into other commodities.
…“One of the big things when you become a big mining company is to say, let’s get into nickel, let’s get into gold or copper, but we are bloody good at iron ore,” he told The Australian Financial Review on Tuesday.
“Because each metal has its own unique challenges and difficulties, you have to have the strengths in the business to manage those. Our strengths are being damn good iron ore miners and good people managers.”
Fortescue.com anyone?
