Hedging Iron Ore, page-19

morning all.

good read, with thanks to DetiMr on CAP board.
even Goldman’s are getting onboard. https://www.cnbc.com/2021/07/16/goldman-sachs-on-iron-ore-bull-run-outlook.html
I’d be thrilled with US$150, we even make good money at $100, with latest C1 US$69, which I’d expect to fall a bit as they go.

if IO prices do stay reasonable, FEX will become a dividend stock. With each 1c div only costing A$4.7m, this could be a 10%+ div paying stock for the next 1-2+ years.
hey rooks, what does NPAT look like for June 30 this year and your estimate for full year 21/22 please? maybe use US$150/100?
70% divs is reasonable, with nothing else to spend $ on. I doubt it would be lower than 50%, but ultra conservatives could use even 25%. Still nice numbers I suspect,

upside to come from step out drilling on current tenement and hopefully a pile of great high grade tons on jv.

remember, they have the best excuse for divs now. Nothing else to do with $ and they want to get franking credits to SH’s. Directors don’t like selling, as it sends a bad message to market. But they hold enough shares to makes divs a very nice option for them. Imagine what the market would do with a 10%+ div paying stock!

if anyone has directors current holdings handle, please post.

cheers,

ned.

if link doesn’t work, google:
iron ore is in a bull market — and it won’t run out of steam soon, says Goldman