"Broker Bell Potter calculates Fortescue's break even price for iron ore production is $69 a tonne, and forecasts net profit will climb 70 percent to $2.98 billion in fiscal 2014."
Surely profit estimate for 2014 is on the low side.
Based on average IO price (realised selling price for FMG) being around $120mt and cost of production at $70.0mt resulting in $50.0mt profit.
Estimated sales volume for 2014 is 130.0mt = $6.5b profit assuming IO realised selling price remains at these levels.
Today is 14/11/2013, 6 weeks short of a full half year and IO price (fe grade) has traded above $130.0mt
I think that their prediction of $2.8b profit is far too loan IMO, any others share this view?
"Broker Bell Potter calculates Fortescue's break even price for...
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Last
$16.82 |
Change
0.000(0.00%) |
Mkt cap ! $51.78B | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | $17.23 | $16.81 | $60.82M | 2.799M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 8113 | $18.09 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $15.49 | 150 | 1 |
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| Last trade - 09.52am 16/08/2024 (20 minute delay) ? |
| FMG (ASX) Chart |
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