OK, call me stupid. I'm assuming this line in the broker report...

OK, call me stupid. I'm assuming this line in the broker report is accurate. At least, by accurate, I mean what the broker stated in part to justify the downgrade:

"FMG shares have risen more than 50% in the past 2 months, whereas the iron ore price has risen about 30% in the same period."

Now, let's say FMG AISC for 1 tonne of their "median" ore is $60. I'm keeping this simple.
Let's say IOP for that ore is $90 per tonne. Still simple.
That's a $30 per tonne, or 50% gross profit margin. That's simple too.

Now IOP rises 30% to $117 per tonne. FMG AISC is the same. Don't we now have a profit margin of 94%, despite the fact that IOP only rose 30%?

But suddenly a broker believes a 50% increase in share price is unreasonable and that warrants a downgrade.

Geez I'm stupid......