This is not a reference to an unfunded meaningless political pledge to give the warm and fuzzies to the mums and dads, rather the armeggeddon(?) approaching punters in over geared bulk commodities plays.
If the balance sheet is in reverse mode vrs the other major players, watch out. Over time the bulk price will move down to the lowest cost quartile cost of production in terms of pricing.
We have seen it before with Japanese and then Korean offtakes through the 80's then the 90's.
The same scenario is happening with China in the 2010's.
They want the commodity over the longer term at the lowest cost, ie sub $90 tonne for iron ore. Similar pressure is on bauxite and more recently thermal coal. With coking coal and ancillary steel inputs such as nickel, chrome etc not far behind.
The FMG balance sheet is not designed to cope with such pressure and should suffer accordingly.
Avoid,avoid,avoid.
Cheers, TAS
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Last
$22.41 |
Change
-0.210(0.93%) |
Mkt cap ! $68.99B | |||
| Open | High | Low | Value | Volume |
| $22.36 | $22.61 | $22.30 | $82.59M | 3.681M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 500 | $22.40 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $22.42 | 11435 | 2 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| FMG (ASX) Chart |