market is underestimating fmg, page-63

I am still trying to understand why it has taken so long for management according to a report I read to only start contemplating ramping high grade ores so late in the cost cycle. I can only guess it technical issues as Dancing explained being scheduling and strip ratio etc.

Grassin, it is fine looking so far ahead and hoping that IOP is so low that the big boys will stop the production ramp. When the time for such contemplation, I will doubt FMG will be an on going sustainable operation. As long as there is a buck to be made, the low cost operators will fight for market share. Look at the Shale oil producers and the ME low cost producers with the brinkmanship.

All reports I have been reading on forecast by the bankers are pointing to lower prices for longer. On such a back drop of sentiment, FMG might survive the downturn but this is a high risk hold for and investment in my book and I am not talking a short term trade. Most here are using the historical price bounce both in the SP and IOP as history will repeat itself. It sure can but I suspect the world economics have now changed. At one stage last year I had exactly the same mentality when looking at the price chart. However the charts do not tell the bigger picture of the world economy.