The Iron Ore bears conveniently forget what would happen to the supply side equation if I/O prices fell below $100/t for an extended period of time. There is a lot of supply (probably a third) that requires prices above $110/t.
The share price of the Majors (RI0, BHP and FMG) will drop significantly if the price crash did come, but it would all be temporary, as adjustments in I/O supply would correct the balance and send the price back above $100. FMG have been publicly saying their break even price is somewhere around $70/t.
This is why it is so important to be at the bottom end of the price curve.
$6 on the cards , page-13
Add FMG (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$17.56 |
Change
-0.390(2.17%) |
Mkt cap ! $54.28B | |||
| Open | High | Low | Value | Volume |
| $17.88 | $17.91 | $17.54 | $60.97M | 3.376M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 2609 | $17.56 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $17.57 | 2014 | 8 |
View Market Depth
| Last trade - 12.38pm 19/11/2024 (20 minute delay) ? |
| FMG (ASX) Chart |