Vale produces some of the highest grade product in the world and...

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cosmog

30 Posts.

11/06/18

13:08

Post #: 33632380
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Originally posted by JCoure ↑

RCMan, IMHO Credit Suisse is just following what we have all been reading in HC and as you and others have been posting. FMG has been marked down for having a go for AGO (AGO going up like a O&G explorer) but if it comes off, BHP and RIO's SPs are bound to come down as their earnings will take a hit from a player, FMG (Comb) that has both high grade and low grade.

At the moment, BHP and RIO are immunized from FMG and Vale because FMG and Vale are low grade whereas AGO would give FMG the capacity to compete or break up the duopoly of BHP and RIO by having both grades and both products out in the P.R.C, India and the rest of the world.

BHP and RIO will want FMG to lose out from buying AGO.

The debt is the debt and S&P is just a contributor for credit ratings, we all know how well they went in 2007-2009. The Great Recession followed.

FMG combining AGO would be a good thing IMHO. Perhaps not if u r a RIO or BHP/BLT supporter. AGO holders might have to satisfy themselves with FMG script, better than nothing?

Credit Suisse r probably just letting their clients know that all four stocks in play. AGO may go up mightily and come down, FMG probably up unless it pays too much and BHP/BLT and RIO r worth less than they were at the start of the FMG play. All IMHO (with support to CS) but pls DYODD.

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Vale produces some of the highest grade product in the world and are getting a huge premium at the moment. No idea where you got the idea that they are low grade producers from

AGO Price at posting: 4.0¢ Sentiment: Hold Disclosure: Held
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Vale produces some of the highest grade product in the world and...

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HotCopper users smell capital raising as 88 Energy says "significant update" at Phoenix

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Harvey Norman clocks subdued gains as Echo Law's junk warranty class action kicks off

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