fairfax down ramps fmg - must be loading up !, page-8

Personally I'm buying whenever I can. Fortescue is doing well. Cashed up and can easily meet their targets and debt. They have previously stated they can survive (profitable) down to $70 tonne. That in all probability would reduce further as debt and infrastructure is paid off. Just a few points to take into account....

One must consider that China at present has twice the realestate under construction than it did in 2008. They are also on track to have 93 cities larger than Sydney by 2020. Google it, DYOR. That is a lot of steel. Add to that expansion and infrastructure in a number of other Asian and Sth Asian Countries.

Once FMG's train infrastructure has finished (in part with partnership with API) their production (transport) costs will reduce further.

I won't even bother rehashing FMG's recent 'recipricol' dealings/agreements with China for 'preferred' status.

Iron ore prices may fluctuate over the next few years, I would be more surprised if they didn't, however to say they are going to bomb would be foolish to say the least.

Sure there is a rush to Africa for some major miners, however mines and infrastructure don't sprout overnight. On average one is looking at 3-4years (depending on location) to establish from time of commercial find onwards. Not to mention the political instability in a number of African nations. By the time any are up and running FMG will be well and truly established and more able to absorb instabilities.

There are more pro's to take into consideration, however I'm starting to sound like a PR advert...

DYOR, but IMO this is no dog, more like a wolf with attitude.

Saying that I hope the price stays down for another month....I want to buy more.