Based on these figures in the FMG presentation FMG have a $US6.1b debt with 165m tonne exported. Their interest cost is $US577.5m (165 x $3.50). Their interest rate is 9.467%.
GBG exports about 9m tonne pa with a debt of $US1,781b.
Based on these figure for each tonne exported FMG has $36.96 per tonne debt while GBG has $US197.88 debt per tonne exported.
In my posting of 6 April (Isn't GBG Profitable now?) I allowed 3% interest rate (and annual cost of $US53m and commented it was very low. If FMG's rate of interest of 9.467% GBG's interest rate would be $US168 pa. or $US18.73 per tonne.
GBG's breakeven price $US94.00 per tonne.
GBG Price at posting:
2.3¢ Sentiment: Hold Disclosure: Held
