Repost - Query concerning FMG cost coverage and breakeven, page-14

Hi Kara,

"FMG is so undervalued it's a joke , they had $12.0b debt now net debt in a few short years down to $4.2b

Balance sheet is strong and getting stronger every day"

Some of the reasons are;
- Good news doesn't sell, so our media always put a negative spin on their stories
- The tonnes coming out of the market, Samarco, RIO & BHP are being ignored, because lazy or misleading journo's refuse to investigate and then accurately report. Eg. Vale's new tonnes; as we all know these will replace high cost tonnage, but that never gets mentioned,
- Until FMG make a really big hit on the debt, probably that next $1 Billion, the gearing around 40% is still too high,
- Analysts will issue statements based on 'F - all' in their efforts to move the market the way they want. Only yesterday I heard an analyst say that although IO price is soaring at present, 'we still think it will be sub $40 next year'. These guys need to be held to account and ridiculed when their predictions are wrong, i.e. most of the time. They shouldn't even get a job at the weather bureau; they at least get it right occasionally.

Flip