Hi WesApologies, I only saw you posts after I had sent my reply...

Hi Wes

Apologies, I only saw you posts after I had sent my reply to Tony and then I had to duck out.

I totally agree that FMG's technology investments through FZ are potentially massively valuable. They are building a world class team of engineers and now have leading edge BESS IP. They are in the front seat in the decarbonisation of mining through EVs and BESS. As you say, the synergies for the IO are huge and they will keep investing, refining and advancing this technology until they get it done. They will not (should not) let this go until they get it done.

However, once done, what do you do with it then?

If it continues to sit within the FMG group its likely that its true value to shareholders won't be fully realised. It will just be valued as a asset with in behemoth mining business. As a standalone tech business the market would look at it differently.

I'm not sure if you have interests in tech businesses, so apologies if you do and I am stating the obvious here.

If you take WiseTech for example - its valued at $44Bn, a PE of 150 on a turnover of $1Bn and NPAT of $263M. Compare that to FMG - cap of $54Bn, PE of 7 on $27Bn turnover and NPAT of $8.7Bn...crazy stuff if you look at these fundamentals. Why is this so?

There are many reasons, but continuing with the WiseTech example...its because of the potential of the compelling story behind WiseTech. I have heard Richard White explain it like this - the value of global logistics is $14Tn, of this 3% is the cost of doing the paper work, he sees their goal as to take 1 of that 3 ie a $140Bn opportunity!!! They are valued where they are because the market believes he has a chance to achieve this. They have the world's leading logistics platform, a true SaaS revenue model, a largely fixed cost base and he is a brilliant salesman.

There is a lot of work to do, but if FZ can build world leading technology with similar revenue models they too will have a compelling story...and we know Twiggy is also a brilliant salesman.