Iron ore prices may continue to rise ahead: Sesa Goa

52578 Investors following Sesa Goa. Share this News with them.

0

Like this story, share it with millions of investors on M3

Iron ore prices may continue to rise ahead: Sesa Goa

Iron ore prices are in an uptrend and would continue to head further north, believes PK Mukherjee, MD of Sesa Goa.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Sesa Goa See previous management interviews See what other Experts & Brokerages are saying about Sesa Goa

Q: You have an enabling resolution of about Rs 6,000 crore. You have already raised Rs 2,400 crore. Do you have any plans for any further fund raising?

A: We do not foresee any fund raising requirement further. Since we cannot go to the shareholder every now and then we have taken an enabling resolution in one shot. As the fund requirement remains within that we can raise the fund as per that approval. We do not foresee any further fund raising requirement immediately.                 

Q: Where are long term prices at right now? What was the last deal that you struck on a long term rate?

A: The Australian benchmark is concerned for 61 grade and USD 59 is applicable for the full financial year. Australian and Goa benchmark is about USD 51 because of its news and preferential freight. So this is the price for the current financial year.

Q: 10-30% would still be a far cry from what you saw in the years of 2007-2008. How will that impact margins for you?

A: Those benchmark prices were very high. Last year price has come down to USD 51 level from USD 75-76 level. To that extent, margin has been impacted. We are trying to make up the margins, volumes and cost control.

Q: On this constant talk about some kind of iron ore export ban is something that a lot of metal companies have been lobbing for have you engaged in any dialogue with the government. Where does that discussion stand right now?

A: Continuously we say that demands have no basis. Recently, some ministers have also given a statement in the parliament that going forward considering the countries reserves, un explode reserves considering and our countries steel vision the reserves are more than 100 years. So we do not find any logic in those sorts of boogies.