fmg strategic position relative to bhp&rio, page-9

Bandwagonjumper does make some good points.

FMG are debt laiden. It doesn't matter about the circumstances about the debt all people know is that the debt is there. The impending receivership of OZ will show just how dangerous any debt can be.

Being leaveraged to the IO price is not a good thing. Prices are going down. Who would want to be leaveraged to that.

There are a number of far bigger better positioned companies than FMG. Anglo American immidiately springs to mind. They have the resource, know-how and the existing relationships to really hammer into the market.

I have always mentioned that FMG's product quality is not that bad. However projects that have far better grades than FMG's are getting shelved.

However FMG does have probably the world's best infrastructure network. The value of this can never be underestimated.

If I were on the board (which I ain't and probably never will be) I would be pushing for diversification. Don't have all your eggs in the one basket.