Morning team,listening to Elizabeth Gaines on Switzer, she said...

Morning team,

listening to Elizabeth Gaines on Switzer, she said FMG paid out approximately $1.4 Billion or $.76 Aussie per share at the half year.( we all know about this Divi.)

juat working on an exchange rate of .72, the FMG board would need to approve the release of USD 2.25 billion or $3.125 Billion Aussie. To fund a $1 finally fully franked Divi.

This would leave the company $2.65 Billion USD in cash on hand based on June 30th cash on hand position.

i also noted from the 4th Quarter production report , revenue for the whole year was an 84% average of platts.

Now looking forward if the spot price can average $110 for the next 6 months FMG stands to make an additional $1.325 billion USD based on 90 million tones production in this 6 month period.

FMG does not have to pay the DIvi until the second quarter ( early October), and stand to make an additional $612 million USD of revenue based on my above assumption.

The board is in a pretty good position to consider showing the market how far they are willing to go to provide the (I quote from quarterly report)
“ continued enhanced share holder returns”.

I think a $1.24 per share SIvi while seen as aggressive is very much on the cards, rounding the full year Divi to $2.00.

I believe FMG board while very responsible also want to continue to highlight the success of the company to the broader market. This IMO would cap off a remarkable year for the company and its share holders in a time of extremely challenging circumstances globally.

In order to pay this $1.24 the board would need to approve the release of $2.77 Billion USD.


Time will tell.

GO FMG you good thing.

All the best

kind regards

MJAK