Is US $200 per Tonne Iron Ore Price Possible? -- City Index UK
LONDON -- (Marketwire) -- 01/10/13 -- City Index UK -- Yes. Anyone
outside of the Australian investment scene can be excused for their
lack of interest in the price of iron ore. With that in mind, please
read on. In Australia, the iron ore price is a measure of national
health. The nation's richest person Gina Rinehart derives the
majority of her wealth from iron ore assets. Rinehart is also the
richest woman in the world. Australia's Pilbara region is home to one
of the most attractive geographies known to iron ore miners -- not
only are there huge deposits of high grade ore but suitable
infrastructure and proximity to Asia ensures the commodity can be
easily commercialised. Iron ore is used in the manufacturing of steel
and the world's largest steel factory -- China -- continues to
produce near record high levels.
Read full article: Is US $200 per tonne iron ore price possible?
So what's the fuss about? Iron ore is just one single commodity but
it has statistical significance to the Australian stock market. BHP
Biliton for example is the largest single exposure on the Australian
ASX200 index and by a large factor. It generates around half of its
earnings from its iron ore businesses. Rio Tinto -- another key index
constituent -- generates more than three-quarters of its earnings
from iron ore. Fortescue Metals -- with a market capitalisation of
around US$15.5bn at the time of writing -- is a pure play iron ore
producer who has returned an average total shareholder return,
annualised at 92.5% over the past ten years to shareholders.
About City Index:
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over the past 29 years.
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