Iron ore price, page-6595

All these discussions on how Twiggy spends his personal money, share buy backs, too much shorters, etc, really have no impact on the Share Prices in the end, what does impact the SP is IF FMG can produce GROWTH in Profit year after year

GROWTH in Profit/Cash Flow is what really drives the SP. Last FY FMG made US$2093M in NPAT and this FY my estimate is US$1102M, therefore we see SP goes from $6 down to $4.30 today.

How to improve profitability? Not Twiggy or FMG buying shares, but to improve IO price/sell more products.

FMG can't do much about the IO Price, that's why FMG is looking at higher grade IO and diversification:
- 60% IO to narrow the discount.
- 68% IO Iron Bridge project, I'm sure this will go ahead, there are still over US$50/dmt margin.
- Diversify into other metals.

Once these "plans" are implemented, you will see the SP moving north again, but it'll take time.

DYOR.
Frank.