FMG costs, page-25

Hi Platinum

Can I conclude that by your post you agree that if Stu's figures are correct and you add depreciation, FMG will report at best break even?

BHP is not my concern. Giving a dick head who ruined the company a $50 million pay out says a lot about the company.

However, addressing your question, I doubt very much that BHP's iron ore division does not have D&A costs.
Are you suggesting that all of BHP's assets are so old that they have been fully depreciated and not been replaced? Really? They must have really good mechanics to keep the old machinery going efficiently. But hey, you have done the research, so I believe you.
So if BHP's equipment is so good that it never needs replacing, of course BHP is in a better position of generating a profit.
The reality however is not like that. Machinery and Equipment is replaced on a regular basis.

Regards


Pear