Dryblower on the high cost of keeping Koolyanobbing in business

“NEVER try to catch a falling knife” is one of the best pieces of investment advice you will ever hear though it seems to Dryblower that when it comes to the Koolyanobbing iron ore mine in WA there are some important people who don’t know what it means.

Dryblower on the high cost of keeping Koolyanobbing in business Dryblower on the high cost of keeping Koolyanobbing in business Dryblower on the high cost of keeping Koolyanobbing in business Dryblower on the high cost of keeping Koolyanobbing in business Dryblower on the high cost of keeping Koolyanobbing in business

For anyone who doesn't understand, consider what can happen to your fingers if you try to grab a carving knife as it drops off the kitchen table. In a word: ouch!

It's the same with an investment which is falling sharply with the lower price appearing to make it cheap. Surely, thinks a bargain hunter, it can't go any lower.

Of course it can and so often does, because the root cause of the fall is often not understood in the early stages of a decline, sucking in new investors who discover too late that they have made a mistake. In a word: ouch!

The problem with Koolyanobbing, a mine developed in the 1950s by BHP to feed a blast furnace at Kwinana south of Perth, is that it has always been a marginal proposition, except when iron ore prices are booming, or when ...