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.
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From Barclays via the SMH blog: “Lower iron ore prices (and...
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Mkt cap ! $61.51B |
Open | High | Low | Value | Volume |
$20.33 | $20.39 | $19.95 | $158.1M | 7.862M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 5999 | $19.98 |
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Price($) | Vol. | No. |
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$20.02 | 555 | 1 |
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No. | Vol. | Price($) |
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3 | 5999 | 19.980 |
3 | 5550 | 19.970 |
4 | 1005 | 19.960 |
11 | 9089 | 19.950 |
3 | 14891 | 19.940 |
Price($) | Vol. | No. |
---|---|---|
20.020 | 555 | 1 |
20.050 | 2500 | 1 |
20.070 | 600 | 1 |
20.090 | 178 | 2 |
20.100 | 24849 | 3 |
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