Recapitalisation options:, page-9

This is a great example of just what should have been possible. Where did ARI go wrong if it is this easy?

Report in Mining News about FMG.
C1 costs for the September quarter were down for an 11^th consecutive quarter to $US13.55 per wet metric tonne.
Costs are down by 20% year-on-year, but still above full-year guidance of $12-13/t.
Iron ore shipments of 43.8 million tonnes were 1% higher and in line with full-year guidance of 165-170Mt.
“Key to our sustained performance has been the alignment of our marketing and operations strategies to optimise production, maximise efficiency and consistently deliver quality products,” FMG CEO Nev Power said.
“This has driven C1 costs to $13.55/wmt, the 11th consecutive quarterly reduction, generating continued strong cash margins.
“All of our operations delivered strong production results during the quarter and most importantly we also achieved a company wide improvement in safety performance of 36% compared to a year ago.”
FMG repaid a further $700 million of debt in the September quarter, reducing net debt to $4.2 billion inclusive of $1.8 billion cash and $500 million in finance leases.
Net gearing stands at 33%.
“Our focus remains firmly on continuing to innovate, improve productivity and efficiency for ongoing cost improvements, debt reduction and enhanced shareholder value,” Power said.
RBC Capital Markets analyst Paul Hissey said it had been another strong quarter from FMG.
“Of all the companies under our coverage, FMG has consistently shown ability to surprise to the upside, whether it be on sustaining capex or operating costs,” he said.
“As such, we believe it is hard to take a negative view on the stock despite the overwhelming consensus view of falling iron ore prices (RBC’s house view is that iron ore remains broadly flat for the next three years), as FMG is likely to continue delivering positive surprises at these quarterly results.
“Having said that, we also believe that the current price range fully captures iron ore prices at the current level, which, coupled with the inevitable uptick in sustaining capex and strip ratio that will come in the next 2–3 years, leaves the stock fully valued and drives our neutral (sector perform) rating.”
FMG shares were unchanged at $A5.15.