From #535:

Cameron  35:25

There definitely are. All right, let’s get into Q&A. First one is from Tim: “possible question for TK. Is SGM less impacted by the iron ore price than the iron ore miners because it is both a buyer and a seller of iron? If it is less impacted, should we take less notice of the iron ore price graph when making buy and sell decisions?”


Tony  35:49

Yeah, good question, Tim. So, it’s almost reminding me of Capral Aluminium which is the same sort of deal. But I thought the easiest way to answer this is to go into Stock Doctor and graph SGM and then overlay it with the iron ore price. There’s a high correlation between both; not quite one to one, but the correlation is pretty clear if you have a look at it.


Cameron  36:11

So, we talked about these guys last week. Scrap metal recycler, and you said the graph is turkey scrap 80/20.


Tony  36:19

Correct, yeah. Which generally, again, follows the iron ore graph. It’s just at a cheaper price point.