We Unpack the Biggest Ever Undeveloped Mine Deal

Two big stories dominated our focus today: Mitsui’s Rhodes Ridge deal + the De Beers write down by Anglo.

We had to unpack the truly enormous swing the Japanese trading house has taken at an iron ore project only forecasted to come online in 2030, and similarly we couldn’t miss a chance to chat about the decline in fortunes of one of the 20th centuries most profitable businesses.

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CHAPTERS

0:00:00 Introduction
0:01:36 Mitsui swing big for Rhodes Ridge
0:10:44 Why have Mitsui made this bet
0:22:17 The iron ore outlook
0:28:00 Lessons from De Beers decline

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DISCLAIMER

All information in this podcast is for education and entertainment purposes only and is of general nature only.

The hosts of Money of Mine (MoM) are not financial professionals. MoM and our Contributors are not aware of your personal financial circumstances. Before making any investment decision, you should consult a licensed financial, legal or tax professional.
MoM doesn’t operate under an Australian financial services licence and relies on the exemption available under the Corporations Act 2001 (Cth) in respect of any information or advice given. MoM strive to ensure the accuracy of the information contained in this podcast but we don’t make any representation or warranty that it’s accurate or up to date. Any views expressed by the hosts of MoM are their opinion only and may contain forward looking statements that may not eventuate.

MoM will not accept any liability whatsoever for any direct or indirect loss arising from any use of information in this podcast.

[russellrogers]

Dr Ian Runge wrote a paper over 20 years ago explaining that all commodities will reduce in price due to new technology or cheaper substitution. The paper started with the price of eggs from the 1700s to the recent day and ended with coal mining moving from UG to OC and then the advent of strip mining with large draglines. We are still seeing it and AI in pit design, long term and day to day planning may be the next big thing.

[ronhammond]

Brilliant once again gents. Trav's outlook on DeBeers is spot on and the lab technology, even thought it has been around for decades, is still in its technological infancy.
Market outlook is HEAVILY biased by the incumbents, and it's stock valuations are ridiculously optimistic. Anglo are fully aware as well, and are simply waiting around for the next sparkly rock sucker to step up...

[victoryoneable]

34:50 a better comparison would be with the coloured stone industry. Synthetic hydrothermal emeralds were touted to displace natural emeralds. They still occupy a space in the low end of the market, but emerald prices are soaring and have been for a very long time. Same with rubies and sapphires.

[Jack-wkp]

If it takes a competent farrier (bloke) 2 hours on average to shoe a large horse + it takes a competent (lady) farrier on average 3 hours to shoe a large horse = with all bloke and lady farriers taken from the same village = and the bloke charges $200 to shoe the big horse = should the lady charge $300 per horse ???

FORTUNATELY BHP is mostly automated = however the DEI policies of Australias biggest miner should be examined = are you lads up to it ??? how much are the ladies costing shareholders ???

[oldtimer]

How about covering Rio and whether or not it is a short. Trump just stated he will replace Canadian aluminum with Russian aluminum. If Trump replaces Canadian oil with Russian oil, the Canadian dollar will be a short.

[russellrogers]

Japan is one of the most industrialised countries but poorest in natural mineral and energy resources. They didn’t start to fix that in that 1980s they started in 1930s with the invasion of China and then later in trying to annex SE Asia. Big slap from the allies then Marshal Plan to rebuild the economy and then continue growing under a rules based trading system. There is a good lesson here.

[Sainter]

$80-100 IO price for 2 years will see a Lithium like bear.. They’re all struggling to make a dollar now..Wait til the AUD starts strengthening.

[speedymccreedy]

De-carbonise steel making, in other words making a product significantly more expensive for end consumers, all because of the global warming religion.

[jvodan]

Japan also went to the malay peninsular for Oil in the 40's 😂

[bencoleman]

So why did rio sell down part of the iron asset to Mitsubishi?