Wether or not FMG pays down debt by $5.0b by December 2014 or June 2015 is irrelevant, the fact they are able to do this is the key point.
If $5.0b debt reduction is achieved with a sale of a stake in TPI it will be a further sign of confidence by FMG
Considering the "near death experience" last yer make it even more amazing.
They paid $300m in dividends and have target a payout ratio of 30-40% going forward which means that based on cash flow they feel that they will be able to this as well as reduce debt.
With costs now around $70mt compared to$90mt last year, a drop in IO price to even $90mt still ensures profitability based on the increase in volumes, soon to be $155mt
I am at loss why SP moved to $4.80 and in last few days retreated back to $4.47. Yesterday the range was $4.47 to $4.69. THis stock is being manipulated or someone is in the know.
FMG Price at posting:
$4.47 Sentiment: Hold Disclosure: Held
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