Executive Turnover, page-9

Based on the share price rally we should hope for more executive turnover and twiggy splitting from a partner every 6 months or so.

Jokes aside FMG due to Twiggy can react quickly and push through changes, projects and capex approvals much quicker than a BHP which is like a public service. When the IO price collapsed around 2014/15 down to US$40 FMG slashed costs very quickly and took their all up production costs down by at least 50% could have been more to nearly single figures, plenty of the management at the time were shown the door including some that had been loyal to AF.

There was the suggestion that FMG could go under but they fought hard and along with support from the workers turned it around, frugility is one of their core values.

Twiggy accused BHP/RIO of some things he shouldn't have at the time and by memory talked about fixing IO prices which wasn't too smart, the IO market has proven to be FMG's greatest asset.

Ten years later FMG is a success story and has silenced the doubters, AF and many of his employees and shareholders have become wealthy due to his hard work and vision. There will always be executive turnover at a business where the major shareholder is one person who believes in his operational ability which so far has worked, although it can be difficult to work at a business where it is effectively the major shareholders way or the highway that's they way it is.

Most of the individuals in the mining game who have been successful have egos and a certain ruthlessness, so far it has worked for Forrest and his FMG project much to the shareholders benefit.