Iron ore price, page-279

There you go, if FY2017-2018 IO average US$65, NPAT is US$2.5B (rounded down)

Could be US$200M more once debt is paid off. But for the argument of shorts, just use US$2.5B.

Profit US$2.5B or A1.06 per share, at SP of $6, P/E of 5.7

If pay out still 40%, expect A42c full year dividend, or at SP of $6, a yield of 7% fully franked.

And at US$65, there will be NO Chinese IO miners making any profit, therefore price will go up again eventually.

I think people are only looking at "grades" and see BHP/RIO have much better grade and hence prices, but FMG is killing it with much lower cost. All in cost exclude interest for FMG was US$28/wmt last Half Yearly, BHP was US$31.80, and RIO Full year was US$33.30 (should be lower if use last 6 month).

FMG's balance sheet can only get stronger, maybe once Debt is paid off, we get A$1 dividend and the market will start to realise what a great buy this is at SP of $6. (p.s. it won't happen, hehe, just a joke)

DYOR.

Frank.