61% fe to average $us 125/t for next 5 years! , page-2

Based on their estimates being correct and IO price for July and August being also at above $130

Realised sale price will be around $115mt and total cost of $80mt

Profit should come in at 120mt @ $35 = $4.2b

A fantastic number which will ensure significant ability to repay debt ASAP

Based on 120mt run rate for 2014, for each $1.00 increase in IO price or $1.00 cost reduction $120m flows straight to the bottom line.

What other business can achieve this type of return.

Now that Capex will end in 2014, FMG will be the biggest cash cow on the ASX relative to its size

If realised selling price is $120mt will equal profit of 120mt x $40mt = $4.8b

These numbers beat even the Banks relative to the capital base

The analysts like Commsec are now stating that FMG in the last 6 months has had a complete reversal of fortune.

Doom and gloom seems to have been removed from their predictions