"155MT @ $30 profit per/t = Big Profits"
If I understand FMG is not getting the spot price whatever it is coz the grades are lower than 62% Hematite. Assume your $30 net margin on the transaction, a further drop of the spot will affect the margin % and will again bring to the fore the corporate debt servicing.
Using the $80/tonne consensus view hypothetically speaking, FMG is in very dangerous territory with debt holders caveat. Whether you agree spot will get there is not the point but this must be factored into the risk profile. Comparing to BHP/RIO with their more diversified portfolio and lower cost of production and ramp up mode in addition to Gina's supply coming to the market, I am more conscious of the risk associated with their sustainability.
6 weeks left till end of year, page-11
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Last
$17.03 |
Change
-0.290(1.67%) |
Mkt cap ! $52.61B | |||
| Open | High | Low | Value | Volume |
| $17.11 | $17.23 | $16.83 | $134.5M | 7.849M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 21 | 2092 | $17.03 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $17.04 | 3808 | 13 |
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| Last trade - 12.25pm 15/08/2024 (20 minute delay) ? |
| FMG (ASX) Chart |