For what it's worth I agree with you on FMG. Just don't say it...

For what it's worth I agree with you on FMG. Just don't say it on the fmg thread they get extremely angry if anyone says anything negative about their company, some of them are almost cult like in their worship of Twiggy and fmg. FMG might survive but shareholders won't do well out of it imo as the debtholders need to be paid first, and they have a lot of debt (putting it very mildly).

The reality for fmg is even with their recent cost cutting, that they are roughly cash flow neutral at current prices, but making a loss including D&A, which means net assets are currently declining. It will be a long struggle for them to pay down debt to a level that is more reasonable relative to their net asset backing, unless they do a capital raising or sell an asset for a good price. We will have a clearer picture of how effective their cost cutting has been after they release the half year financial report.