Another business venture, Pretty close ?, page-33

From time to time Twiggy Forrest talks about looking at other opportunities if the right circumstances arise. I don't know anything about FMS leases. I do know FMG does not want to increase its iron ore production volumes significantly at this stage because they recognize that doing so would probably reduce the price per ton received. And I know (based largely I think on what RC has posted) that FMG has massive amounts of tenements it can develop when the time is right already.

FMG has a stated objective of trying to get its gearing ratio down. Until very recently FMG's share price has probably been bogged down by the perception that it was carrying potentially dangerous levels of debt. I think that perception has largely been remedied by what most analysts seem to agree has been a very good management effort to reduce FMG's costs of production and by them paying off a significant amount of that debt in advance and at a discount. FMG's margins now seem to be excellent.


Anything Twiggy (or FMG) does that involves getting away from what many, including me, regard as a truly excellent core business now, is regarded with some concern that that (not sticking to the knitting) might reduce, or risk, rather than increase, the real value of FMG as a business just when nothing but time seems to be needed to make that real value of FMG's current business clear to the market.

All the above is just my opinion.