Iron ore price, page-825

What were you basing the valuation on?


There is over $3 of assets per share and those assets are generating about a 25% - 30% return, by the end of the year it will probably be about $4 of assets per share.

Now at the moment cash earns about 2% or 3%, So assets that earn 25% - 30% are worth a lot more than their book value.

Even if you paid $7, for an FMG share today you are effectively paying $7 for $3.50 of assets that earn 25%, so their earning would be about 12.5% based your purchase price, which is 4 times what you would get with cash.

Even the last 12months dividend alone (ignoring retained earnings) is double what you get in a cash investment.


So I can't see how it is over valued at $5.50 as you claimed, this company is building equity every day, and returning a bunch of it to shareholders through dividends, and repaying debt with the rest saving interest and building equity.