hi Stevo. Yes CO2 is a clear odourless gas. So is CO. So is radon. I once worked underground at Olympic Dam and radon gas is clear and odourless and occurs naturally yet they go to great efforts underground to stop a build up of it. Now I can assure you of some facts. One fact is that FMG product is currently 58% Fe. FMG receives a discount to the standard 62% Fe Platts because of the impurities. It is a fact that raw steel produces in the Pilbara will be close to 100% Fe. So instead of shipping 42% impurities FMG will be shipping almost purely Fe. They will get 2 to 3 times more revenue for the same infrastructure because of the demand for this product due to the reduced air pollution it will create. If they can make this work technically it will make them a huge amount of money. Here is another fact. Solar power made in the Pilbara is cheap once it is installed. The cost is close to zero after installation. The all in costs of solar power these days makes it easily the cheapest overall power for sites like the Pilbara. So making raw steel using solar power makes financial sense. Here is another fact. CO2 in the air has increased since the industrial revolution due to the activities of man. And another fact. Mankind is burning fossil fuels most of which have been in the ground and some of which comes from the first formation of the earth. Here is another fact for you. Global average temperatures are rising. Here is another fact. The technology to displace fossil fuel use with cheaper renewable power is upon us right now. That is why it is being rolled out now. Now the facts are done here is my opinion. Anybody who does not think it is a good idea to take advantage of the above facts and start using renewable power instead of fossil fuels is just being silly. And FMG taking advantage of that is a good business decision.
FMG Price at posting:
$14.60 Sentiment: Buy Disclosure: Held
(20min delay)