fmg profits and future at risk, page-33

I see no issue with expanding production to the 155 m/tonnes as planned, or even further for that matter as long as it is profitable to do so.

The IO coming on line is low cost which will actually reduce average costs.

Any additional tonnes that can be brought to market for less than the IO price is a plus.

FMG has the benefit of being small enough that fairly sizable percentage increases won't significantly alter the IO price. If anything RIO and BHP cutting back adds to FMG's incentive to expand.

As long as FMG remains at the lower end of the cost curve then it has nothing to worry about.

A bigger question which we should be discussing is what price FMG will be allowed to charge third parties for access to its rail network. The ACCC has the power to set prices of access from what I have been reading. Would be interesting to hear a little bit about how all that will be worked out. Good news is access arrangements usually take years to get through the courts so miners seeking access will have a strong incentive to make a mutually profitable deal rather than spend time and money going through legal appeals.

PS: would be good if we could move away from the culture on FMG threads of getting into incessant slagging matches. Such a waste of time and space.