Alloy Steel Inc. (fka AYSI)

[greasemonkeyshoes]

Why a $120 price floor is super critical and a must,at least from the eyes of an independent Jr. iron miner:

http://finance.yahoo.com/news/labrador-iron-mines-holds-annual-225628347.html

"At the end of August, the Company was on track to meet its 2012 sales target of 2 million tonnes of iron ore at a cash operating cost of $60 - $65 per tonne unloaded at the Port..."

"The sale of LIM iron ore in August was made under provisional pricing arrangements and subject to final settlement, which occurs approximately one month after the ship has departed the Port. The aggregate realized price of the three shipments sold under these arrangements, consistent with forward swap pricing for September, is expected to average about $30 - $40 per tonne less than the selling price of $122 per tonne on a CFR China basis achieved in Q1. The Company will continue to report proceeds from its aggregate sales of iron ore on a quarterly basis...."

Was
$122-$35-$62.5-$15(shipping/handling/commission)=$9.5 profit per MT

Now
$96(current spot price)-$35-$62.5-$15=-$16.5 loss per MT

Last 8 weeks: Risk level of iron ore industry has more than tripled for the same return...........this Jr. miner saw a MC drop of 80% since its high,so was aysi too!!

ps-For every month price below $120 MT,the chance of write-off of Indonesia project increases!!As of this month:75% chance likely.