The problem with FMG is that it’s a low grade producer.
last production report they only realised 79% of the spot price.
Going forward it will only get worse as the grades further deteriorate.
You then have the issue of costs - they also stated on the investor call that the cost to produce in the Pilbara will increase up to 9% over the next 12 months.
even if the iron ore prices stay around this level they are going to have serious cash flow issues over the next 12 months.
Anyone who thinks they will pay a decent dividend are kidding themselves.
their was a reason their long term insto holders dumped at any price…. Give you the hint…. It’s not because the share price is going north anytime soon
Iron ore price, page-53772
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Last
$17.32 |
Change
-0.840(4.63%) |
Mkt cap ! $53.32B | |||
| Open | High | Low | Value | Volume |
| $18.22 | $18.27 | $17.26 | $202.6M | 11.43M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4600 | $17.31 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $17.33 | 396 | 1 |
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| Last trade - 16.10pm 14/08/2024 (20 minute delay) ? |
| FMG (ASX) Chart |