Be happy if IO price averages $180mt 62% feRealised price for...

Be happy if IO price averages $180mt 62% fe

Realised price for FMG no less than $155.00 d/mt less $50.0d/mt all up costs taking into account stronger than forecast AUD (they use $0.75 in their forecasts) equates to $100 mt profit.

Realised price Dec 2020 (6 months) = $119 mt, March quarter = $144 mt. $10 increase adds another $400-$500 m to the bottom line.

I think they should use this historic opportunity to pay off debt and still pay a decent dividend. They can always borrow at more favourable rates going forward if needed for an acquisition, JV etc.

$200 plus won't last forever, and it could be the case that China reacts in some way soon, that puts a stop to the IO price hike. 10.00% increase in just one day is most welcome, but over the years I am more than aware it can be followed in a major decline in the share price.

Been there done that many times and followed with a margin call. This time may well be different.

One mistake by Vale or disruption to supply China is stuffed. Andrew and FMG have a good relationship with the Chines and FMG may be treated differently to BHP & RIO.

Just my thoughts for someone that was pressured by the wife to sell 400,000 shares at around $9.00 to not have a home loan and the home unencumbered. Lost capital gain plus future dividends, let alone the capital gains tax I paid means either a family lawyer or be happy with the remaining parcel held of 400,000.

Every time I think about this look at the price of IO and the share price I feel sick, but then again at the height of the GFC I was holding a $3.5m paper loss on a margin loan with daily phone calls for top-ups.

Hindsight and greed and the wife can be a bitch