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.
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Last
$17.34 |
Change
0.520(3.09%) |
Mkt cap ! $53.38B |
Open | High | Low | Value | Volume |
$17.31 | $17.51 | $17.00 | $309.6M | 17.18M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 300 | $17.33 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$17.35 | 28897 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 300 | 17.330 |
4 | 1452 | 17.310 |
5 | 4300 | 17.300 |
4 | 24092 | 17.290 |
7 | 149266 | 17.280 |
Price($) | Vol. | No. |
---|---|---|
17.350 | 28897 | 5 |
17.360 | 50 | 1 |
17.370 | 16348 | 3 |
17.380 | 1000 | 1 |
17.400 | 16248 | 1 |
Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
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FMG (ASX) Chart |