Holy Moly, someone must of reading what I'm reading as well,...

Holy Moly, someone must of reading what I'm reading as well, just going through the announcement and SP shoot up from $7.65 to $7.75 in a heart beat.

- "Full marketing rights supporting Fortescue’s strategy of a majority of product greater than 60% Fe"
- "Expected to price at a premium relative to the Platts 65 Index"
- "Low impurity product suitable for pellet feed or blending with sinter fines"
- "Binding offtake agreements in place with five steel mills for 5.3 mtpa"

All-in sustaining cost of US$45-55/dmt comprising:
•C1 cost of production US$30-35/dmt* inclusive of a fee to access Fortescue’s port infrastructure
•Sustaining capital expenditure US$4-6/dmt*
•Royalties, administration costs and sea freight

The All in Cost is actually quite low compare to Vale, from memory Vale was around US$55-60 a couple of years ago, I need to do some research now, but with Platts 65% around $100/dmt PLUS "premium", we could see operating cash flow of US$60-70/dmt!!

With FMG getting 60% share of the profit, another US$700M+ PA of Cash Flow.

Shorts need to cover soon, and Longs just need to relax.

DYOR
Frank