9/27/2023 0 Comments Cashflow boardgame wholesalerI have not changed that original guess, except to point out that the stress lows since those articles have been around $80-90 USD a tonne, and not for very long. In a previous series of articles on the iron ore market, Where's iron ore headed from here?, and the follow-up article, Is iron ore done and dusted? I outlined my view that the practical floor on iron ore prices is not the $60 USD a tonne put out by the ever-low-balling budget surplus guarding government forecasters, but around $100 USD a tonne, due to the market structure in China. Queensland House Removers doing their thing, with some help from a Mack prime mover. ![]() Out of interest, I looked up the history of the Australian Road Train, as a solution to the tyranny of distance, which hauled Australian commodities from our vast interior lands to strategic ports. With this factor in mind, the cost of transport is critical for bulk commodities. When you consider how far it can be from an iron ore production centre to a port, that is really a bargain compared to Australia Post! For instance, wholesale Australian wheat flour trades around $0.70 to $2.80 USD per kilogram. That is just about the cheapest bulk product around. Let's call the price $100 USD a tonne, which is 1,000 kg, in sensible nation units. In the grand scheme of things, iron ore is a pretty cheap product. Here, I am going to explain why we are buying Fenix Resources ( ASX: FEX) The value of logistics This can turn up some interesting opportunities. The people whose money is actually being put to work. It is a great way to escape the tyranny of institutionalized funds management since you don't really meet any fund managers there. On the emerging miners' circuit, this is come once, come again, calendar entry. This was my first time there, which may strike some readers as odd. ![]() I just returned, with my business partner, from an excellent time spent at the biannual Noosa Mining Conference, held at Peppers in Noosa Heads.
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