Hi Greatone,
when working out FMG’s profitability, you don’t simply minus the all in cost of production from the Iron Ore price.
the reason for that is the $35 break even price includes the royalty, grade discount, moisture discount etc up to that $35 dollar level.
what this means is that if their break even price is $35, and the Iron Ore price is $36, they don’t make $1 profit they make about $0.50 profit, because that additional $1 will be reduced by a 6% royalty, a grade discount, a moisture discount and some other taxes based on a percentage.
over the years I have found the best way to estimate the profit of FMG per tonne is the following
Iron Ore price - $35 break even price / 2
eg. $90 price - $35 Break even = $55… $55 / 2 = $27.50 profit per tonne.
Hi Greatone,when working out FMG’s profitability, you don’t...
Add FMG (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$25.66 |
Change
0.090(0.35%) |
Mkt cap ! $79.00B | |||
| Open | High | Low | Value | Volume |
| $25.72 | $25.86 | $25.63 | $77.37M | 3.012M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 11417 | $25.65 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.70 | 2000 | 1 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
|
|||||
|
Last
$25.72 |
Change
0.090 ( 0.55 %) |
||||
| Open | High | Low | Volume | ||
| $25.72 | $25.86 | $25.64 | 785342 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| FMG (ASX) Chart |