That is break-even compared to the risk of investing in the equity market compared to a risk free return in day government binds. Which is why your earlier comment re fmg equity versus cash returns was incorrect.
Plus you arent discounting the future potential of FMG equity for risk, you are just adding earnings to the end of year position without any opportunity cost.
Lastly FMG can't reinvest additional cashflow for above market returns at 20% - it actually needs to invest around 20-25% of its current market cap within 5 years just to maintain production.
Iron ore price, page-862
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Last
$25.59 |
Change
0.830(3.35%) |
Mkt cap ! $78.79B | |||
| Open | High | Low | Value | Volume |
| $25.09 | $25.59 | $24.82 | $182.9M | 7.212M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 7000 | $25.55 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.59 | 108 | 1 |
View Market Depth
| Last trade - 16.10pm 26/04/2024 (20 minute delay) ? |
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Last
$25.53 |
Change
0.830 ( 2.88 %) |
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| Open | High | Low | Volume | ||
| $25.05 | $25.58 | $24.83 | 1579176 | ||
| Last updated 15.59pm 26/04/2024 ? | |||||
| FMG (ASX) Chart |