Thanks convexity. I ask the question in the context of trading the stock. I note on 1 Jan 2019, FMG sp was $5.65 when 62% fe IO price was $US 73. Of course the company wasn't so cash rich as today and if I remember right FMG then was still in net debt.
Not having a crystal ball, I imagine a sustained $US 60 IO price during a period of negative sentiments (global recession and decoupling with our largest trading partner), the sp could reach $6-7 (if 58% fe discount increases by another $10, I think we will be close to breaking even and shipping ore at cost).
On a positive note, Twiggy managed to secure a high grade project in Africa for a song when we previously failed in Guinea. Recently he chuckled to a journo why pay billons upon billions for just 50% of 50% in reference to Simandou. Once that high grade ore is blended with the Pilbara dirt, we will have a premium product.
Iron ore price, page-48584
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Last
$27.01 |
Change
-0.230(0.84%) |
Mkt cap ! $83.16B | |||
| Open | High | Low | Value | Volume |
| $27.24 | $27.25 | $26.88 | $95.85M | 3.547M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 6 | $27.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $27.03 | 26437 | 4 |
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| Last trade - 16.10pm 21/05/2024 (20 minute delay) ? |
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Last
$26.91 |
Change
-0.230 ( 1.46 %) |
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| Open | High | Low | Volume | ||
| $27.25 | $27.25 | $26.89 | 522670 | ||
| Last updated 15.59pm 21/05/2024 ? | |||||
| FMG (ASX) Chart |