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Ann: CISA Conference Presentation, page-25

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rcman

32,700 Posts.

1514

16/10/15

10:15

Post #: 16189726
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Originally posted by pear ↑

Hi Stockguru
I concur with you.
What is also very scary that if you break the annual return into halves, the second half was a loss.
The cost of sales in the second half was $39 per tonne. (I know that this includes depreciation, but anybody who thinks depreciation is not a cost have rocks in their heads.), and this is before admin and financing costs.
At current spot prices of $57, FMG would be receiving approximately $44 per tonne.
This gives them a margin of about $5.
Which means deep losses for 2016.

As I keep posting, forget C1 etc, and dry prices and COS of adjusted for wet. Look at the accounts and use actual costs. Then take the spot price and discount it by approx 23% and you know what is actually coming in.

Unless costs have reduced further (and I don't think they have), then in my opinion we are losing money at current spot.

Pear

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Hi Pear,

what did you think about yesterday's grade discount, I am surprised it came in at 9% and not 23%

Thanks

FMG Price at posting: $2.39 Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

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(20min delay)
Last $19.98		Change -0.160(0.79%)		Mkt cap ! $61.51B

Open	High	Low	Value	Volume
$20.33	$20.39	$19.95	$158.1M	7.862M

Buyers (Bids)

No.	Vol.	Price($)
3	5999	$19.98

Sellers (Offers)

Price($)	Vol.	No.
$20.02	555	1

View Market Depth

No.	Vol.	Price($)
3	5999	19.980
3	5550	19.970
4	1005	19.960
11	9089	19.950
3	14891	19.940

Price($)	Vol.	No.
20.020	555	1
20.050	2500	1
20.070	600	1
20.090	178	2
20.100	24849	3

Last trade - 16.10pm 03/10/2024 (20 minute delay)

FMG (ASX) Chart