Big Dividend will set FMG apart from the rest ., page-112

I think the current price is fair, the market doesn't value companies on the current six-monthly metrics. The market knows this is an anomalous result due to the supply problems in Brazil (double whammy of dams and Covid) and if you value FMG on long-term IO price assumptions it's not worth $30 and possibly not even $17.99. Plus, as a company that still only produces a single commodity they are always going to trade at a risk discount compared to a diversified miner.

It's only two or three years ago that FMG was trading in the 3s. I certainly wouldn't be paying $30 for FMG knowing that it's inevitable that the IO market will eventually equilibrate and likely overcorrect into oversupply. FMG is in a much stronger position now than it was back then, with almost zero net debt and some higher-grade product to lessen the vulnerability to the low-grade discount that was a big issue a few years ago, but if the 62% CFR price drops back to the levels it was then (around $60) it's still going to hurt.

So I'm just going to enjoy the yield while it lasts. My average price for FMG is $4.70 so I'm at a 53% gross dividend yield.