First post in this forum. Although FMG has some resistance...

First post in this forum. Although FMG has some resistance around $18 mark, I think that Nolan is actually correct. Why

1. Iron Ore has already become the number one ingredient commodity for post CV19 infrastructure boom think Rosevelt only on steroids in China. This will be followed across the rest of the world to get the unemployed back to work. It will happen in the USA, Africa, the rest of Asia, India etc. Demand is going to grow

2. FMG can ship its high quality products of Iron ore to market at or cheaper than its competitors around ~$13usdmt

3. Excellent management keeping costs down, increasing use of tech to keep handle on costs

4. Exclusive partnerships with Chinese steel makers. Twiggy & co have worked hard to create & maintain these very important relationships. To the extent that it has offended many people here. Any one remember that recent press conference when Twiggy intro that Chinese bloke?
Iron ore pricing is often opaque. Dealings are done behind closed doors. FMG is not on the nose the way Rio & BHP ( to a lesser extent ) has been in this key market. (I own BHP/ RIO / FMG / MIN / GRR & MGX)

5. The PE ration is still very low = value

6. Irrespective of how long CV19 has to run, its operations in the Pilbra are largely isolated from this. I love the WA gov's tough stance. This will protect its operations for years to come.

7. I heard rumours that a special div may also be on the cards.

8. My friends in Brazil tell me that Vale isn't come back anytime soon. And how long does it take to get Iron Ore from Brazil to Tianjin again ?

Fundamentally, this company is very very sound and will continue to print money.

Just my opinion and not financial advice.