iron ore up again!, page-17

FMG have the Fortescue blend now. Previously the discount to the published IO price was close to 10.00% now it is just over 5.00%.

This information is from company presentations and announcements.

Last report IO price averaged around $130-$135mt US the realised selling price averaged $123.0mt US which equated to around 10.0% discount. The last reports stated that there was less discounting now on their product especially the "Fortescue Blend"

Either way they are generating circa $500.0 m in profit a month as IO price since July 2013 has not dropped below $130.0mt, in fact foe the 6 months it is averaging around $135.0mt

Another debt reduction announcement, dividend announcement and the first half results will catapult FMG towards $7.00

I believe the ratings agencies will shortly rerate FMG again to the upside as the expansion to 155.0mt is nearing completion within budget and time frame. IO prices are firm and cash flow must be bursting their bank account at the moment.

Once we are told Capex is done and dusted all the cash flow will be directed to large chunks of debt reduction and a surprise dividend payment for the loyal shareholders.

I could be wrong but the facts and figures for the last 6 months are based on fact and not wishful thinking.

The markets must acknowledge that FMG has achieved what they had set out to do, yes they accepted high risk, but AF as a punter seems to have picked the trifecta and the bookies are now or soon will be licking their wounds and damaged egos.