Commodity Blip?

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=157890&sn=Detail&pid=102055

You wonder how knowledgeable this tipster is.  It is certainly good for BHP shareholders for it not to proceed with extra expensive mine development.  Afterall, most Australians would not move to a job and there is a huge premium in shifting people to workplace, not just the wages but also the cost of FIFO.

If the tipster is right, then he would be suggesting investment in developing resource stocks.  In some way, the impending 'recession' in the mining industry is wonderful.  When the demand for labour exceeds the availability, the cost of development skyrockets.  Those that have got their projects running must be delighted, especially if they were able to contain the cost.  But even producers are not spared the wrath of illogical investors.

In a few weeks time, PCL will know whether it is a billion dollar stock or worth just a few rupees.  One failed exploration drilling (paid for by its JV partners) will see it banished to the cesspool, even though it has multiple exploration sites.  When you read the hype, you would think it is impossible to fail....   and what with Apache, Tullows and Origin farming-in onto that block.  These big boys do not spend millions without scrutinizing the seismic studies.  But then, I have had lots of failures in the past!  I just need one more highly successful one to over-compensate!