guess how low it can go., page-144

tabitha

"I have only been referring to the major trend of FMG being down and as you can see I have been correct."

You are correct in that TABITHA.

There will be rallies from time to time in the s/p, for a number of reasons however the overall trend continues to be down imo.

As I have posted before, there is more down side to fmg than upside imo at the moment.

A number of things will determine fmg's on-going viability.

Demand.
Price.
Debt.
Production difficulties.

Let me take the final point.

We are coming into the cyclone season - a point that not many here seem to realise.

This may have a profound effect on production.

One major hit from a horrific cyclone or worse, many cyclones over the period, and we have the potential of shutdowns or worse, destruction of plant and equipment that could put fmg months if not years behind.

The effect of the above could be catastrophic for fmg and its share price.

Imagine this scenario.

January 2009 and a force 5 cyclone crosses the coast in WA's north west with destructive winds in excess of 200 kph and scores a direct hit on fmg's mine site.

Hundreds of thousands if not millions of dollars of damage is done and the result is not only a complete shut down of the operations, it is announced that the destruction has caused so much damage to the infrastructure that output will cease for up to 3 months and full production will not be resumed for 6 to 12 months.

The above is possible believe me. I have been in this area during a cyclone and they can have a devestating effect on the region.

No one wants the above to occur as not only plant and equipment can be destroyed, lives can be lost as well.

FMG is currently defending a charge/charges in relation to deaths from a previous cyclone in the area.

If the above were to occur, and lets hope it does not, just imagine the possible effect on the share price.
_______________________________________________________

THE ABOVE IS NOT FINANCIAL ADVICE AND NOT DESIGNED TO BAIT, TROLL, FLAME, CREATE AN ARGUMENT OR OTHERWISE CAUSE OFFENCE TO ANY PERSON WHO SO-EVER IS ENTITLED TO DISAGREE WITH MY OPINION AS STATED IN THE ABOVE TEXT