Iron ore price, page-36157

Hi Doobi. Yes agreed FMG has lower grade ore. This is a risk to the downside. However I want to state the risks to the upside...
1. Leadership. FMG is lead by Andrew Forrest who may be Australia's greatest ever businessmen. He is young and still in his prime. BHP etc are lead by bureaucrats whereas FMG is lead by one of the greats. Andrew continues to show leadership in so many ways and keeps putting FMG at the front of the pack.
2. Grade. As of next year IBO within FMG will produce 22mtpa at 67% Fe. This is the highest grade product sold by any of the major Australian producers and will balance the low grade risk in the portfolio. This IBO project is an example of FMG leadership. None of the other major producers have done anything like it.
3. Climate change. The world appears to be moving towards some form of global carbon price lead by Europe. FMG is rapidly becoming carbon neutral lead by Andrew Forrest and will be so by 2030. This is another example of leadership.
4. Low valuation. FMG trades at about half the PE of BHP. So yes the low grade is a risk as you say but this is reflected in the lower price. Given the above points I want to assert that the FMG discount is too large and the FMG share price should be much higher.