I was in sales for 25 years, in a very competitive market. I...

I was in sales for 25 years, in a very competitive market.

I understand everyone does not think like a sale person.

its not a given as a sales person or a company that you will retain all your customers, sales revenue income or profit each year as there are various market forces. Customer tender for business , customers and purchasing managers want consistency of supply and a competitive price.

Sometimes consistent supply outweighs the price, especially when the end product is supplying major customers, who are willing to pay a premium for the end product or the product at end of the supply chain. E.G China stimulating infrastructure projects post their Virus challenges.

In simply terms, a Chinese buyer may think it more sustainable and less risk adverse to procure from Australian IO producers over the next 6-12-18-24 months than other countries that may have problems with contracted supply of goods.

With FMG advancing their IO portfolio to cover the spectrum of the IO market ( e.g. 58- 60.1 and 67 % IO) they increase their opportunity to increase their customer base and take customers from their competitors.’who can potentially be considered a supply chain risk. Increase business means a increased mining output effort or performance. (210 tones)

Whilst it may seem a potential flooding of the market by Austral ian miners , it could be seen as a two fold shift IMO-

1/ Australian miners taking market share based on ability to supply ,( FMG having the market covered 58-60.1 and 67 % IO)
2/ global steel market growing which requires the stated Aussie IO miners increased production.
( world needs to stimulate in current position).

IMHO - both are a win win for FMG.

kind regards

MJAK