Australia's largest stock trading and investment forum Australia's #1 stock forum

FMG

Click for more information

3.42%

$22.67 fortescue ltd

POWER!!!! Fortescue Future Industries, page-3738

First 3738 Last

Share
Profile

Follow
Ferginator

32 Posts.

4

18/06/24

20:44

Post #: 74377853
Share

Originally posted by Ferginator: ↑

Hello Tony

The breakeven point is calculated as annual Fixed Costs / Gross Margin %. Right now GM% is very low and I suspect COGS includes a tonne of costs that are not variable in nature. For me there are too many unknown variables to try and figure that out for now. Although we could have a guess by splitting the obviously too high COGS figure into fixed and variable components but that would be guessing. Another other option is to assume a GM% of x and divide forecast fixed costs $ into that. Then based on a % of known deferred revenues + ongoing revenues + new contracts we can assess the likelihood of FZ being profitable or not. However, I am guessing they have a 'goldilocks' or 'honeymoon' period where they can write their own cheques, within reason, to support new research initiatives. That will be ok for Mgmt for a while but at some point it will need to pay its own way. I reckon they have 2 years to be profitable but that is 100% speculation by me.

Expand

Whoops......Another other option is to assume a GM% of x and divide forecast fixed costs $ by that. Not into.

FMG Price at posting: $21.79 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

LLC

ACCC raises competition concerns about acquisition of Lendlease projects

AS2

Askari sets exploration target of up to 323K ounces Au at Burracoppin

LAT

Latitude 66 Shares Surge 8900% on Promising Exploration Update

XRG

XReality Group wins $800K contract from Aus Government for military and police VR training tech

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

There are more pages in this discussion • 102 more messages in this thread...

First 3738 Last

Add FMG (ASX) to my watchlist

(20min delay)
Last $22.67		Change 0.750(3.42%)		Mkt cap ! $67.49B

Open	High	Low	Value	Volume
$22.38	$22.73	$22.26	$61.02M	2.709M

Buyers (Bids)

No.	Vol.	Price($)
11	6718	$22.66

Sellers (Offers)

Price($)	Vol.	No.
$22.67	3739	10

View Market Depth

No.	Vol.	Price($)
6	1691	22.660
15	5664	22.650
16	11301	22.640
10	4027	22.630
10	6054	22.620

Price($)	Vol.	No.
22.670	3985	8
22.680	5790	18
22.690	8851	16
22.700	11147	17
22.710	12631	17

Last trade - 12.04pm 04/07/2024 (20 minute delay)

FMG (ASX) Chart

SPONSORED BY