Iron ore price, page-43474

Sssh, you are ruining the confirmation bias echo chamber. We mustn't discuss the realities of iron-ore supply and demand, or P/E ratios, only iron-ore prices when they tick up. I mean, we might actually effect one of the largest capped stocks in Australia with our observations.

But yes, the company gave punters a clear indication of the business in recent qtlry that do not warrant the valuation given. Perhaps all of China's ghost cities are going to be demolished and rebuilt.....5% dividends they cry, as the stock and their capital falls 5% in a day.

I don't care about harranguing existing holders who have probably done very well in FMG. Retail holders who buy up here are a very good chance of losing a lot of their capital. FMG has likely seen its zenith year in terms of revenue for some time. Its forecast only very slight production increases and 2021 was surely the pnnacle of iron-ore prices, all global financial and economic factors considered.

Retail investors will lap up editorials like this:

https://au.finance.yahoo.com/news/adding-fortescue-metals-group-asx-050057832.html

...that mention little about a massive Fed/ECB/PBC expansionary money policy that drove the 2021 iron-ore price highs. Fortiscue EPS growth is not only going to slow, its going to reverse on falling average iron-ore prices and static production, rising costs and capital expenditure, according to the company for 2022:

• Iron ore shipments of 180 - 185mt
• C1 cost of US$15.00 - US$15.50/wmt
• Capital expenditure (excluding FFI) is increased by US$200 million to US$3.0 - US$3.4 billion after incorporating the acquisition of WAE