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.
Analysing everything in terms of the dividend only is silly. FMG...
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Last
$25.66 |
Change
0.090(0.35%) |
Mkt cap ! $79.00B | |||
| Open | High | Low | Value | Volume |
| $25.72 | $25.86 | $25.63 | $77.37M | 3.012M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 11417 | $25.65 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.70 | 2000 | 1 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$25.72 |
Change
0.090 ( 0.55 %) |
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| Open | High | Low | Volume | ||
| $25.72 | $25.86 | $25.64 | 785342 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| FMG (ASX) Chart |