- Iron ore prices are relatively high, therefore, don’t expect earnings and dividend stability.
- An analysis of mining costs shows the balance price for the metal. Trade iron ore miners around that balance price.
- Vale’s mining costs per ton will go as low as $8.
Iron ore miners currently being praised as stable companies with low valuations, high earnings, and dividends, has really taken me by surprise.
But that’s how the market thinks. Short term, short term, short term, and a stock is a good buy only when it’s at multi-year highs because it’s the market performance that determines the quality, not the fundamentals. More →