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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Last
$23.20 |
Change
-0.220(0.94%) |
Mkt cap ! $71.43B |
Open | High | Low | Value | Volume |
$23.46 | $23.49 | $23.04 | $104.4M | 4.486M |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 18833 | $23.19 |
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Price($) | Vol. | No. |
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$23.20 | 6082 | 1 |
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6 | 14534 | 23.170 |
2 | 3510 | 23.160 |
6 | 23610 | 23.150 |
2 | 33930 | 23.140 |
Price($) | Vol. | No. |
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23.200 | 6082 | 1 |
23.240 | 12371 | 4 |
23.250 | 410 | 2 |
23.260 | 220 | 2 |
23.270 | 620 | 2 |
Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
$23.24 |
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Change
-0.220 ( 0.46 %) |
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Open | High | Low | Volume | ||
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Last updated 15.59pm 14/06/2024 ? |
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