Australian Investment Blog

Western Desert Resources (WDR) goes into receivership, when/or if do we get brave and buy Iron Ore stocks?

The front page of the AFR is now leading with “Iron Ore slump hits economy” over a month after we predicted the inevitable fall in both the commodity and related stocks. Over the weekend, the commodity hit a fresh 5-year low of $US83.60 a tonne, leading prominent politicians to warn of an “inevitable” recession. The table below now shows a number of major producers are losing money at current levels. A lower $A would help all concerned, but the RBA seems unable to get the stubborn currency close to its 85c level – currently at 93.65c.