Hi, Sharman. I think FMG can and will survive. FMG is a mining...

Hi, Sharman. I think FMG can and will survive.

FMG is a mining company. Such companies are built to last. If I'm not wrong, at the speed they are digging FMG would have enough iron ore for the next 40 years or so.

Moreover, FMG cut cost like nobody else. They made a great job. They made early repayments and I'm pretty sure that they wouldn't have much difficulties to borrow more money if they need it.

FMG got 4 years to pay repayments. 4 years, it's more than enough. In a year Iron Ore lost something like a tier of its value. So what could happen between now and then? Well, I believe the price has been smashed already. So I truly hope for a bounce... To be truly honest, in 4 years, the price of Iron Ore could fluctuate between 110$/tonne to 20$/tonne. Imagine how much money would FMG make if the current price where at 50$/tonnes...Which doesn't seems like a crazy optimistic price.

And if this bounce doesn't come, there's plenty of companies out there processing Iron Ore that get bankruptcy before FMG. I don't wish company to close, but I can't help thinking that most companies are producing iron ore at, at least 50$/tonne... At the current price most of them aren't bankrupt yet, so how could FMG be that doomed? They still managed to offer dividends. When some companies borrow money to pay dividends... And moreover, they make benefits.

Plus, looking at the global commodity market today everybody suffer. Oil, nickel, even gold seems to suffer nowadays. This couldn't last for months... of course, if you are looking for fast return on investment I wouldn't consider FMG. In the short term, it's more a bet than anything else (but what else isn't in the short term?). If you think long term, FMG is an good investment. I could be wrong of course, but I'm pretty that I will have many opportunities to sell my shares with big benefits in the next 5 years...