@Greatone
This cost curve is what sets IO prices long term and it shows a very steep tail the shape of which means that the long term average price is likely to be roughly USD100.
The IO price is determined entirely by demand. The buyers don't care less about Cost Curves.
BTW the current shipping cost (>$12/tonne) is almost as high as the C1 production cost.
And you fail to mention that a share price calculation for FMG at an assumed long term average IO price of USD100 gives a share value which is probably north of $30.
100% wrong. The FMG (and other miners) share price is always based on the current IO price. The $26 price was based on IO prices of $220 - not long term prices. At $100 IO the FMG share price should be around $12-15. Which is exactly what it is now,
https://finance.yahoo.com/quote/FMG.AX/financials?p=FMG.AX
Chinese steel mills turning away Ozzie ships, page-102
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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 |
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| Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
| FMG (ASX) Chart |