Iron ore price, page-35564

That's hard to say.
If I were a technical trader I would suggest that it wouldn't fall through being a major $16 major support level.
But I am a fundamental value investor and in my opinion the current price is already below it's intrinsic value, hence I would consider FMG a buy at this level.

My call is based on the following factors:

1. Strong cash flow generation.
2. FMG is also one of the lowest cost producers.
3. Aud under pressure and coupled with impact from Covid further room to fall. Favourable conditions for Australian exporters. So while the iron ore price may be coming off a bit we still have a cheaper Aud as an offset. Full disclosure, I am more bullish on the AUD longer term due to favorable industries and demographics.
4. FMG is innovating into new areas of green hydrogen production and clean energy generation. Creates a point of difference to FMG vs RIO and BHP. Fully disclosure, I also own a sizeable stake in RIO. The more I read about the prospects of Green Hydrogen the more bullish I become.
5. Steel should be in need with the favorable economic backdrop with governments stimulating like it's going out of business to stave off recessions.
6. Steel in long term up cycle with expected demand to de-carbonise the planet.
7. Very extended valuations in areas outside the commodity producer space. So some amount of valuation catch-up is possible. I also like the prospects investing in real assets rather than financial assets.
8. Commodities tend to do well or better in inflationary environments. It can in some ways be seen as a hedge on inflation.
9. Additionally, FMG appears to be going through a bit of a wash out at the moment which means you may be getting bargain prices. Be greedy when others are fearful, etc.
10. I am trying to build out more of a income portfolio. My current positions are mostly positioned around growth and so FMG is providing me much needed diversification.

Sorry to harp on. I just thought it would be better give you a more complete answer because investing is a complicated beast.

Please don't consider this investment advice. I am not a qualified investor advisor or anything. Do your own research, etc etc...