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Forecasts of $20/t iron ore. The response? IO now $48/t.; Iron ore recovery offers budget boon hopes
Topic Started: 21 Feb 2016, 07:58 PM (42,797 Views)
Jimbo
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skamy
9 Dec 2016, 11:52 PM
Instead of engaging in long term investments and the necessary sacrifices that takes both the doomster and property seminar cult followers think they can get something for nothing.
It must be hard being you Skammy.

The paradox in which you live.

You want everyone to buy a house but you need people to not be able to afford to buy so they are forced to pay you rent.

You want young people to have a home of their own, not waste money on rent, but you need them to pay you rent.

You implore everyone to get in now and buy before it is too late, but if they do, you will have nobody to pay for your retirement.

You run around the endless stairs of your paradox trying to find a balance which will let everybody have their cake whilst you eat all of it.

It must be hard being you.

Edited by Jimbo, 10 Dec 2016, 05:52 AM.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Trollie
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Ex BP Golly
9 Dec 2016, 09:20 PM
How am I denying that?

I'm pointing out that c.80% of the profits from our biggest export leave the country through tax dodges to foreign investors, and that what we get is a mere dribble of the resources value.

We'd be lucky to retain $10 from the $82.25.


Total rubbish as usual.

The tax data is available for all the majors and they are all paying 28 - 30% in corp tax alone, plus royalties plus wages plus capital spend.

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Ex BP Golly
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Trollie
10 Dec 2016, 09:25 AM
Total rubbish as usual.

The tax data is available for all the majors and they are all paying 28 - 30% in corp tax alone, plus royalties plus wages plus capital spend.
Made a mistake, for BHP/Billiton, 60% of profits would go offshore. (Rio is about 80%)

How much of the $82.25 do you think stays in country Trollie.



WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Trollie
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Ex BP Golly
10 Dec 2016, 09:50 AM
Made a mistake, for BHP/Billiton, 60% of profits would go offshore. (Rio is about 80%)

How much of the $82.25 do you think stays in country Trollie.


Why do you want to focus on profits so badly? Because when you look at the actual money spent in Australia it's clearly very good for the economy.

Both majors have an estimated all in cost per tonne of $23 or 28% of the current price. The vast majority of that cost is spent here. Then we keep about 40 - 20% of the profits out of that by your own admission.


So we keep roughly 50% of the value of the ore. Seems pretty fair.
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Sydneyite
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Trollie
10 Dec 2016, 10:12 AM
Why do you want to focus on profits so badly? Because when you look at the actual money spent in Australia it's clearly very good for the economy.

Both majors have an estimated all in cost per tonne of $23 or 28% of the current price. The vast majority of that cost is spent here. Then we keep about 40 - 20% of the profits out of that by your own admission.


So we keep roughly 50% of the value of the ore. Seems pretty fair.
Actually it would be even more, because there are also state royalties, plus a large portion of the 2 majors are owned by Australian super funds / aussie investors - would have to be 30-50%? So that means that of the remaining 50% from your estimate (let's say $40/tonne), $12-$20 again stays in oz as it is returned to onshore owners as dividends (or re-invested by the company which of course means it mostly stays onshore anyway).

So I think Golly's guess of "$10" is a typical bear bullshit number that is way way off the mark - I reckon it would be somewhere between $50 and $60 would remain in the local economy, of the $80 odd sale price per tonne.
Edited by Sydneyite, 10 Dec 2016, 01:25 PM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Trollie
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Sydneyite
10 Dec 2016, 01:24 PM
Actually it would be even more, because there are also state royalties, plus a large portion of the 2 majors are owned by Australian super funds / aussie investors - would have to be 30-50%? So that means that of the remaining 50% from your estimate (let's say $40/tonne), $12-$20 again stays in oz as it is returned to onshore owners as dividends (or re-invested by the company which of course means it mostly stays onshore anyway).

So I think Golly's guess of "$10" is a typical bear bullshit number that is way way off the mark - I reckon it would be somewhere between $50 and $60 would remain in the local economy, of the $80 odd sale price per tonne.
I haven't even touched on the capital investments they make which run into the billions.

Of course golly is spouting utter rubbish as usual, it's all he has.
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Ex BP Golly
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Sydneyite
10 Dec 2016, 01:24 PM
plus a large portion of the 2 majors are owned by Australian super funds / aussie investors - would have to be 30-50%?
And from Trollop, we know that that forces individuals to go into massive debt.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Matthew
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Jimbo
10 Dec 2016, 05:51 AM
It must be hard being you Skammy.

The paradox in which you live.

You want everyone to buy a house but you need people to not be able to afford to buy so they are forced to pay you rent.

You want young people to have a home of their own, not waste money on rent, but you need them to pay you rent.

You implore everyone to get in now and buy before it is too late, but if they do, you will have nobody to pay for your retirement.

You run around the endless stairs of your paradox trying to find a balance which will let everybody have their cake whilst you eat all of it.

It must be hard being you.
Absolute nonsense Dimshit. In any market at any given point in time people will need to rent. Kids leaving home for the first time, low income earners, the unemployed, new arrivals, divorcees whose wives kick them out for losing money on stupid currency trades, people who sell their unencumbered house waiting for a 25% fall in prices so that they can "upgrade for free". That isn't going to change irrespective of house price movements.

My only hope for my three boys is that they turn out nothing at all like Chris.
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Trollie
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Ex BP Golly
10 Dec 2016, 02:53 PM
And from Trollop, we know that that forces individuals to go into massive debt.
We all know when you've capitulated on a topic because you try change the subject by making some unrelated stupid comment.
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Jimbo
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Matthew
10 Dec 2016, 02:58 PM
Absolute nonsense Dimshit. In any market at any given point in time people will need to rent.
I totally agree.

Sometimes people need or choose to rent.

But Skammys business model is built on competing for entry level property, forcing up prices and then renting to the very people she priced out,

It's your business model as well Matey.

And right now, it is not working out how you thought it would.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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