Confirmed.
GBG is FOB as we knew. BUT the Karara JV will receive CFR price which will have a net back of the shipping. So $15 per tonne for shipping is reasonable. This is standard.
Hence FMG may have $45-$50 cash cost, but still makes a loss at $100 p/t due to interest, shipping and the discount for lower Fe/impurities.
Therefore my initial model was reasonable (based on my estimates). 0.113 EPS is my estimate. Extremely good value, so long as the spot price holds. It's not so pretty at $110-$120 per tonne which is in line with the broker presentations predicting a sub $0.30 shareprice.
**please note I take no financial responsibility for this**
- Forums
- ASX - By Stock
- GBG
- updated eps
updated eps, page-32
-
- There are more pages in this discussion • 22 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)