Totally agree with Charlie view point. If we look at USD 100 Iron ore price, FMG would receive around USD $88. Currently FMG all in costs including debt are $73 USD. So margin of $15/MT USD or $20/MT AUD at 80 cents.
If producing 127M MT that is profit of 1.9B or eps of 68 cents per share. On 5x - 7x earnings that is $3.5 - $4.8.
That is $100 62% CFR China, what happens at $80?
At 90 62% FMG sells for $78 USD, margin is $5, eps $0.2 USD, AUD 0.8 $0.25
5x $1.25 7x $1.75 - $2.
However FMG have cash and assets so $2 could be worst case.
Totally agree with Charlie view point. If we look at USD 100...
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Last
$21.67 |
Change
0.410(1.93%) |
Mkt cap ! $66.72B | |||
| Open | High | Low | Value | Volume |
| $21.58 | $21.67 | $21.22 | $133.3M | 6.196M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 80000 | $21.65 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $21.67 | 44058 | 5 |
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| Last trade - 16.10pm 25/06/2024 (20 minute delay) ? |
| FMG (ASX) Chart |