Margins , margins , margins
Rough figures just for discussion , please don't attack them if they are a few dollars out - just painting what I think is a very simple picture
fMG produce IO at a total cost of 85
They sold it at 145 -150
So a margin of 60-65
iO now 88 but let's agree that this is a ST bleep . And lets say it recovers to 110
Margin 25 dollars
Now after the decrease in capex , labour etc , this lower margin needs to pay debt and justify enough of a revenue multiple to support and certain SP - the simple fact is if IO settles anywhere below 120 FMG is worth a lot less than it is being valued today - my view only
fmg the lehman of the commodities bubble?, page-53
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| Open | High | Low | Value | Volume |
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| No. | Vol. | Price($) |
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| Price($) | Vol. | No. |
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| $17.50 | 12148 | 3 |
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