huge re-rating coming !, page-2

Matt747,

I would love to be more positive, but that is a very long bow you are drawing there.

From THe Australain Today.

Stock Quotes:
Search ....Mining & Energy Third party access key to FMG sell-off by: Paul Garvey and Lisa Macnamara From: The Australian December 18, 2012 12:00AM Source: The Australian
"THE price that debt-laden Fortescue Metals Group can get for its multi-billion-dollar rail and port network could hinge on the Perth-based miner finally allowing greater third party access to the network.
Fortescue yesterday confirmed it was weighing up the sale of a minority interest in its wholly owned subsidiary The Pilbara Infrastructure, which houses Fortescue's rail and port assets.

The negotiations, the company said, were being conducted with "a small group of selected investors".

Analysts estimate Fortescue could fetch up to $5.1 billion for a 49 per cent stake in its infrastructure assets, potentially allowing the company to pay down a large portion of its estimated $10bn debt position.

But sources close to the negotiations told The Australian that Fortescue's ability to realise its desired price -- the company is believed to be asking for more than $3bn for a one-third interest in the network -- will hinge on its openness to allow other parties on to the track.

While Fortescue is aiming to increase its production capacity from 64 million tonnes to 155 million tonnes, further upside from the infrastructure assets is likely to be minor unless it is opened up to other parties.

Rio Tinto and BHP Billiton have historically been unwilling to open up their Pilbara rail and port infrastructure assets to third parties, fearing that their existing operations could be disrupted.

Fortescue chief executive Nev Power yesterday said any sale would be carried out at "full and fair market value" and on the basis that the current efficiency of the network was not affected."

Atlas just completed financing for $325 Million. How much will that buy. ?



BTW No position because I just sold out...