No Company hedges 100% of their fuel expense mate.
The fact that oil plummeted 26% overnight to just $20 a barrel - and now sits at an 18 year low - means mining companies like FMG will be generating a couple of hundred million dollars in extra annual profits.
The market is fully aware of this and is a contributing factor to why the FMG share price is up 8% today - despite the Dow falling 6.3% overnight.
FMG Price at posting:
$11.21 Sentiment: Buy Disclosure: Held
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