GNI 2012-02-29 Industry Report

GNI 2012-02-29 Industry Report - Great Northern Iron Ore...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Great Northern Iron Ore Propert Basic Materials United States Industry Type (2/26/2012): Steel and Iron Key Indices: Recommendation Investment Thesis: Companies in this industry own and lease mineral and non-mineral lands. Mining industry overall has experienced moderate growth in the past two years. The sector of precious metal will likely to grow more strongly than basic materials. There are many companies in this industry sector, with a few players at the top. With most players occupying a few hundred million market cap, VALE has 130 billion in market cap. The revenue growth is generally high, partly due to the increasing demand in developing countries. Competitive Structure: There are substantial barriers to entry into the Ore Mining industry. The initial expenditure on obtaining the rights to operate a mine as well as fund developing the mine could be very expensive. Especially, new entrance will have to obtain those rights from future competitors. The competition is highly concentrated. The biggest players own the most profitable and high-
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2012 for the course BUSM 409 taught by Professor Bryansudweeks during the Winter '11 term at BYU.

Ask a homework question - tutors are online