answers to common questions on fms, page-5

another good post slappi, well done.
You mention BC Iron, Brockman and UMC and Flinders which have different tonnage targets and jorc at various stages which make interesting reading in the graphs Bungi2 posted yesterday on the MXR thread. It shows FMS with a 13c mc per tonne based on 333mt, BC Iron with a 63c mc per tonne, Brockman with 12c ( similar to fms) and UMC with a mc per tonne of $1.90. So the $2 per tonne you mention is fair value per tonne once jorc compliant and the difference os the market sentiment and the "if " factor.
Lot's of variable's which is taking some time to digest. Interesting that FMG is at $7.70 mc per tonne based on 2.8bn shares and 2.77bn tonnes which will probably be twice that within 12 months ( like FMS's tonnage in the graph which is the low 333mt figure used)....a doubling of the tonnage halves the mc price per tonne, so with that in mind, the value of FMG looks about right around $4 mc per tonne with the expected doubling target and in production and shipping with forward sales etc.
The other interesting mc per tonne are GBG ( with magnetite included) coming in at 17c ( which suggests to me they are also very under valued), Maximus at 1c mc per tonne and surprisingly, Midwest at $3.43 ( inc magnetite), which suggests $4 is fair value per tonne with the stage they are at re production.
CFE looks to be much better than I thought with 13c being the mc per tonne ( NB not taking in the sale and cash).
There's a lot of corrections needed to the resource tonnages to be able to compare apples with apples ( re targets ) and it seems to be a common comment that hematite is about double the value of Magnetite. I generally halve the total magnetite target tonnage to get a reasonable comparison. Lot's of other factors like, cash position, other assets, debt, transport, opex, capex, forward sales etc. The Ocean Equities report has some good data that helps...
cheers FS.
PS, The post by Bungi was headed "Iron ore company comparisons" from memory and he posted it after close of market yesterday on MXR thread. I haven't worked out how to copy and past otherwise I would have done it on this thread.