Flanagan: Emotion is now a key driver of iron ore prices

In July 2011 shares in junior iron ore miner Atlas traded as high as $4.34 valuing the company in excess of $4billion. Today the shares sit suspended at 12cents. The company’s directors are now hitting the streets in an attempt to convince investors that a new look and lower cost operating model is worthy of their hard earned. For most the iron ore market remains a simple tale of supply and demand. The majors are ramping up production against the backdrop of a demand side lacking the punch to keep prices stable. David Flanagan, Managing Director of Atlas Iron, says an innovative approach to running the business has allowed Atlas to reduce costs and build a leaner and more competitive vehicle. In this interview Flanagan gives his view on dynamics in the current iron ore market, why he believes the demand response from China will kick in and why some investors are responding to his call for capital. Click the image below to watch the interview: