Analysing everything in terms of the dividend only is silly. FMG is a business with earnings and risk.
The point of IBO is not its effect on the dividend. The point is its effect on FMG as a business. IBO is an early step towards completely changing FMG as a business including changing its growth and risk profile.
FMG is a low grade and low inventory producer compared to the other Pilbara majors and competes directly with them as a blast furnace feed. That puts it in a relatively weak position at the moment and explains its low earnings multiple compared to the rest of the ASX.
IBO creates a different high grade product feeding new steelmaking technologies instead of old fashion blast furnaces. It moves FMG away from competing with the other Pilbara majors and towards a new market. The new technology for the flowsheet will also open up new opportunities if the flowsheet works.
Thats why IBO is a big deal. Forget the IBO effect on the dividend it doesnt mean anything. If the IBO commissioning goes well its a massive plus for FMG as a business. FMG then becomes the only major in the Pilbara with a genuine growth profile.
- Forums
- ASX - By Stock
- FMG
- Iron ore price
Iron ore price, page-49727
-
- There are more pages in this discussion • 4,392 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add FMG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$17.97 |
Change
-0.360(1.96%) |
Mkt cap ! $55.32B |
Open | High | Low | Value | Volume |
$18.10 | $18.28 | $17.97 | $250.7M | 13.82M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 104054 | $17.96 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$18.07 | 4370 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 3800 | 17.960 |
11 | 1487 | 17.950 |
3 | 6628 | 17.930 |
1 | 1500 | 17.920 |
28 | 7848 | 17.900 |
Price($) | Vol. | No. |
---|---|---|
18.070 | 4370 | 1 |
18.080 | 270 | 1 |
18.140 | 1700 | 2 |
18.150 | 100 | 1 |
18.160 | 100 | 1 |
Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
FMG (ASX) Chart |
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online