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
FMG Price at posting:
$1.79 Sentiment: Hold Disclosure: Held
(20min delay)