Iron ore price, page-11470

Holy Moly, someone must of reading what I'm reading as well, just going through the announcement and SP shoot up from $7.65 to $7.75 in a heart beat.

- "Full marketing rights supporting Fortescue’s strategy of a majority of product greater than 60% Fe"
- "Expected to price at a premium relative to the Platts 65 Index"
- "Low impurity product suitable for pellet feed or blending with sinter fines"
- "Binding offtake agreements in place with five steel mills for 5.3 mtpa"

All-in sustaining cost of US$45-55/dmt comprising:
•C1 cost of production US$30-35/dmt* inclusive of a fee to access Fortescue’s port infrastructure
•Sustaining capital expenditure US$4-6/dmt*
•Royalties, administration costs and sea freight

The All in Cost is actually quite low compare to Vale, from memory Vale was around US$55-60 a couple of years ago, I need to do some research now, but with Platts 65% around $100/dmt PLUS "premium", we could see operating cash flow of US$60-70/dmt!!

With FMG getting 60% share of the profit, another US$700M+ PA of Cash Flow.

Shorts need to cover soon, and Longs just need to relax.

DYOR
Frank