From Barclays via the SMH blog:
“Lower iron ore prices (and consequently a lower share price) would increase the risk/reward for FMG,” the broker says.
Barclays points to the following “under-appreciated” factors which could help the share price:
Currency: “a [5 cent] change in the $A/$US rate would impact NPV by 13 per cent, on our estimates”;
Shipping costs: “a 200-point change in the BDI could change NPV by 7 per cent”;
State royalties: “a reduction in royalty costs could cushion the impact of pricing by 6 per cent”;
Grades: The grade discount has overshot and “now appear due for a small reversal”
And here’s the only line that matters: “On the balance sheet, we do not see much risk unless iron ore remains at $US85/t or less for five years out to 2019.”
JUST ANOTHER OPINION.
- Forums
- ASX - By Stock
- FMG
- The bottom line
The bottom line
-
-
- There are more pages in this discussion • 84 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FMG (ASX) to my watchlist
|
|||||
Last
$22.36 |
Change
0.440(2.01%) |
Mkt cap ! $67.49B |
Open | High | Low | Value | Volume |
$22.38 | $22.48 | $22.26 | $15.92M | 706.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 3094 | $22.34 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$22.36 | 2139 | 8 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 4060 | 24.110 |
1 | 250 | 24.100 |
1 | 734 | 24.090 |
1 | 56100 | 24.050 |
2 | 6594 | 23.620 |
Price($) | Vol. | No. |
---|---|---|
20.830 | 7069 | 5 |
20.850 | 20 | 1 |
21.000 | 2000 | 1 |
21.150 | 4709 | 1 |
21.200 | 3220 | 1 |
Last trade - 10.06am 04/07/2024 (20 minute delay) ? |
Featured News
FMG (ASX) Chart |
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO & MD
Anthony Noble
CEO & MD
Previous Video
Next Video
SPONSORED BY The Market Online