A thought bubble... The current $29 / tonne difference between Brazil's 65% and FMG's 58% IO equates to ~$5b p.a. less revenue for FMG's ore. This is massive! If the sale price difference stays this way, as RIO claims, FMG should consider ramping up production to 200m tpa, build a downstream refining stage at a capital outlay of, say, a few billion, which is capable of generating a nett ~170-180m tpa IO at 65% grade. Despite the additional annual processing steps and initial capital outlay, FMG could probably still add at least $10 per tonne to their selling price, i.e at least ~ $2b p.a. profit, or about > $6 per share. I can only assume that this is not being considered by FMG as it is not so straightforward to concentrate the ore from 58 to 65%? Where else am I going wrong? Technically impossible?
A thought bubble... The current $29 / tonne difference between...
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Last
$21.41 |
Change
-0.260(1.20%) |
Mkt cap ! $65.92B | |||
| Open | High | Low | Value | Volume |
| $21.52 | $21.67 | $21.30 | $150.5M | 7.000M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 93 | $21.40 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $21.41 | 12657 | 3 |
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| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| FMG (ASX) Chart |