The iron ore spot price is at $47.08 and three in every four tonnes of iron ore produced globally is now at / near loss making. In today’s AFR the front page headline reads “Iron ore price war rocks Atlas” and through our morning meeting we discussed which high cost iron ore producers could be next to fall off the cost curve. By nature I am a contrarian investor and these look to be clear buy signals for me. The recent retreat in iron ore prices has captured allot of attention in the media and investors have been waiting for something to give before investing further in iron ore producers. Australian junior iron ore play Atlas Iron looks to be the first victim of a weak iron ore price, seeking a voluntary suspension on 07/04/15 buying them some time to conduct a strategic review of their operations over the next few weeks, I don’t think Atlas (AGO) will be last producer to review their operations in the short term. For more see: (VIEW LINK)


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