Ann: Debt reduction to continue as FMG recognised as lowest cost, page-22

BP


Forgive me for my arrogance the market is concerned about gross debt not net debt

Net debt after paying back $700,0m in Sept was 33.00% but yet no credit upgrade, gross debt gearing of 30.00% will move the sp and credit rating

Interest cost of $3.10mt too high

Reduce this and the all up cost reduced further meaning that io price can fall but FMG will still be cash flow positive

If they need cash and balance sheet string with the assets they own they can always borrow again in worst case scenario

Large debt is why they were classed as risky

Now they have the opportunity to make major inroads with repayments, why wait no point at all

I doubt that io price will fall back to $50,0mt next month or next qtr