While various pansy journalists, analysts and miners whine about competition in the iron ore market, they should all take a moment to step back and wonder at the sheer bloody-minded ruthlessness of Rio Tinto CEO Sam Walsh whose Rio Tino rose 4% last night in London.
Mr Walsh may seem a little soft with his doughy complexion and genteel demeanor but the following chart tells you all you need to know about what he’s like as a businessman. Here are the indexed performances of major iron ore equities since the arrival of the Fortescue glut in 2013:
Mr Walsh’s RIO is destroying his competitors at a stunning pace. It’s not just iron ore juniors going down the dunny, they are the first, fourth and fifth largest producers. Walsh is also clearly outperforming his only and largest rival in BHP.
This is temporary and a triumphant RIO is an illusion woven by Mr Walsh to cover his firm’s previous massive capital mis-allocation into a falling Chinese steel market. But jeez, markets have bought it hook, line and sinker and that can still be sheeted home to the CEO.
Enjoy it while it lasts, Mr Walsh.
