If all $500M is utilised for an acquisition the D/E would be at ~600%, which is high. Although from current NPAT it could be paid off in 6 years, not including income from acquisitioned royalties. The business model is strong, negative equity could be sustained with the right asset. Question is could they find another Area C style royalty to acquire at a reasonable price, given that they were a split entity to attain this current position.
Acquisitions aside, on a purely income driven analysis on the IO price, FMG presents a better position/return on IO price than DRR. IO low price in Oct 2021 presented a better buying opportunity with FMG than DRR, as FMG SP doubled since with same rising IO price that DRR is valued at, while DRR only increased 50%.
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Last
$3.56 |
Change
0.045(1.28%) |
Mkt cap ! $1.855B |
Open | High | Low | Value | Volume |
$3.53 | $3.57 | $3.53 | $239.2K | 67.57K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
11 | 6009 | $3.54 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$3.55 | 1860 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
11 | 5832 | 3.550 |
17 | 22736 | 3.540 |
8 | 8788 | 3.530 |
11 | 22504 | 3.520 |
11 | 28940 | 3.510 |
Price($) | Vol. | No. |
---|---|---|
3.560 | 689 | 3 |
3.570 | 37555 | 8 |
3.580 | 35111 | 11 |
3.590 | 21564 | 9 |
3.600 | 179239 | 10 |
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