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
- Iron ore price
Analysing everything in terms of the dividend only is silly. FMG...
-
- There are more pages in this discussion • 3,374 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FMG (ASX) to my watchlist
|
|||||
Last
$21.25 |
Change
-0.270(1.25%) |
Mkt cap ! $65.52B |
Open | High | Low | Value | Volume |
$21.60 | $21.64 | $21.19 | $67.51M | 3.161M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
16 | 4363 | $21.24 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$21.25 | 4156 | 17 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
18 | 18504 | 21.240 |
15 | 4757 | 21.230 |
13 | 4905 | 21.220 |
20 | 14232 | 21.210 |
25 | 35413 | 21.200 |
Price($) | Vol. | No. |
---|---|---|
21.250 | 4247 | 10 |
21.260 | 7569 | 17 |
21.270 | 11792 | 23 |
21.280 | 10819 | 15 |
21.290 | 13739 | 21 |
Last trade - 14.04pm 23/07/2024 (20 minute delay) ? |
Featured News
FMG (ASX) Chart |
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO & MD
Charles Armstrong
CEO & MD
Previous Video
Next Video
SPONSORED BY The Market Online