"Flip - where is your discount for the product? They may sell...

"Flip - where is your discount for the product? They may sell wet, but they also sell an inferior grade to the 62 percent price. Beards might be out a touch, but Blythe looks so are your numbers. Anything for shipping in your numbers? I think beards has a real point and the market has not quite awoken too it! There is no way FMG makes US18 bucks at current prices pre tax. Sharpen those costs. Landed fob."

Hi petey888,

Just to address your points in order;

1/ My discount for product is in the 13% deducted from the price, first part of my calculation. That was the average reduction that FMG received from the 62% fe price in the previous FY, for its wet lower grade ore. There has been some comment that this percentage has since decreased, but I'm trying to be conservative, so I wont use a lower figure until its published.
2/ Yes, Beards is out of touch, and like yourself, not a holder
3/ The shipping numbers are included in the USD$50 tonne delivered to China, as published by the company in it annual report, about page 83. This has been referenced before.
4/ Beards might have a point (or an agenda), and I'm pretty sure most of us know what it is, but if Beardy is making these assertions, I want to see some actual calculations. Not 'media type' hype but something based on facts and figures.

Flip