FMG 1.10% $19.76 fortescue ltd

bouncing fmg ideas, page-18

  1. 671 Posts.
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    Its hard not to find the negative in the idea you've presented. It shows no understanding of the costs associated with such a plan (opex of the process, cost of obtaining the extra feedstock to maintain a 200mt saleable volume, opportunity cost of not selling the additional feedstock ore directly, etc). Not to mention you've ignored the dynamic behaviour of the market (if it was viable to do this everyone, including the low grade Chinese domestic ore, would and the market would be full of 68+% ore instead of 58%).

    Sure, if it were feasible I'd be highly positive of such an idea, but it's not at this time.
 
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