Iron Ore Price, page-18665

No doubt but from a forward price perspective blackmores was unsustainable whereas even after the all this sp progress to 6.48 the Pe is around 9. Unlike in the past where the hype around fmg didn't match the business metrics and based on potential , fmg is now a good business with dramatic cash cost and debt reductions. Hence if io tanks we will c a retracement in all stocks. However the intrinsic value of fmg and its risk factor has improve md dramatically. It was once called a dog if a stock due the immensely risky business model of expire to a single commodity based on ridiculous debt tied into the Chinese story of immense growth and high io prices. The bad times has proven to be the making of fmg. It was forced to evaluate its model and through prudent management has bought the cash cost to an absurd 12 dollars of seabourne producers -cheaper than bhp and rio. It has cash in hand of 1.2 billion and net debt of 4 billion from 11 billion. It has its own infrastructure and just Got i
The 1st of 8 ships to improve efficiency and capacity to transport ore without the need for further capital spend on infrastructure. This is now being recognised by market as a company that has control of all elements of the mining to delivery phases and hence also enable it to influence cost management strategies at a greater level than other companies.
So even if io prices retrace to 60 dollars fmg will be making a bonanza with a cost at 12-13 usd. With the prospect of increased div returns to shareholders and potential diversification, fmg will be in the radar of long term holders.