fmg going up, how long for ioh?, page-6

It would be a case of most definitely not happy Jan if the FMG deal doesnt goes through- although given the current price what is the downside risk?

Surely we cant go below cash backing of around 60c a share, in fact the current price has most probably priced in IV not going ahead at all.

FMG did stump up $25m in a non-refundable upfront fee so there is already a strong incentive for them to complete the deal.

IOH may also for instance be willing to relax any take or pay type arrangements to allow for the current weakness of the iron ore market but FMG have committed to a scaled down expansion and the project economics of mining IV as part of the wider Nydinghu deposit must still be there.