Fmg is most leveraged to FE price. Many of their costs would be fixed excluding royalties. Income tax paid obviously increases as well with higher profits.
Depreciation is fixed at about USD7 per tonne but is non cash flow item.
Taking all this into account, USD35 per tonne is approx what they would generate in cash flow assuming USD 85 per tonne is their realisation price.
If FE goes from USD 95 to USD 100, then as a rough estimate add another USD 3 in cash flow, which would be about USD 42m additional profit or AUD 58m on top of the AUD 700m (assuming That is the average for one month).
Hmmm there would be a lot of franking credits distributed as well that would amplify the dividend received by shareholders that may not be taken into account by the mkt either....
Fmg is most leveraged to FE price. Many of their costs would be...
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Last
$17.34 |
Change
0.520(3.09%) |
Mkt cap ! $53.38B | |||
| Open | High | Low | Value | Volume |
| $17.31 | $17.51 | $17.00 | $309.6M | 17.18M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 300 | $17.33 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $17.35 | 28897 | 5 |
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| Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
| FMG (ASX) Chart |