Why the big price rise tiday?, page-35

Hi Pseudo Echo.
I want to respond to your comment "I don't understand why FFI is not a separate company it has nothing to do with iron ore".
I disagree with you. I think FFI has everything to do with FMG and I think it demonstrates that Andrew Forrest is a genius because he realised it before anybody else even had the idea.

FMG is not a mining company it is a resources company. Energy is a resource (for example oil and gas fits in BHP as a diversified resources company). Hydrogen is the world's next great resource.

Other posters on Hotcopper have said that FMG should diversify. But it is. Andrew Forrests genius is that he is diversifying into the resource of the future (hydrogen) rather than just copying BHP and Rio by going into nickel, coal etc

Hydrogen fits the FMG portfolio for many reasons. Only one of these reasons is that it gives FMG commodity diversity. It also fits FMG because FMG knows the Pilbara so well and renewable energy is a natural fit for the Pilbara. Plus Hydrogen is a natural fit for FMGs iron ore business and a cheap supply of Hydrogen opens up the possibility of green steel which in turn helps improve FMGs core iron ore business. Green steel, if FMG can pull it off, will really ramp up the profits of FMGs iron ore business.

Andrew Forrest has been grabbing up the best renewable energy sites around the world. There is a lot of uncertainty in what Andrew Forrest is doing and a lot of risk in all this but he has the real potential to create one of the world's great energy companies. If he can pull it off then Andrew Forrests name will rank alongside names like Jeff Bezos and Elon Musk because he is first mover into what he thinks will be one of the world's next great industries.

This is a long term play. It will take at least 10 years and the risks are high. In the meantime FMG is still subject to the cyclical iron ore market. But the opportunity is huge.