FMG is a sad side show and will continue to be with all it's debt.
$10/tonne or 1.6b - 2b a year and in control of your own destiny.
Maybe not.
Call it profit in your dreams. The reality is that FMG are about $20/tonne short of being able to pay off the debt if price does not rise. Lenders, scrambling like never before for yield, in the lowest interest rate environment ever, aren't willing to give FMG less than 10%. Hardly a vote of confidence in Twiggies business plan.
Wonder what FMG will be offered next time they try to role over debt when interest rates are likely to be more normalized.
Lower grades, smaller margins and no way of influencing the price of oversupplied IO.
Not quite the the captain of their own destiny when you scratch a little further below the dirt on the surface.
Yeah it's called profit. The trouble is that kind of 'profit' needs to be qualified.Money that goes towards clearing principle on debt is profit, it's called building equity.
$10 profit per tonne FMG could clear most of their debt.
The premier echoed his earlier criticism of BHP and Rio in March when he accused them of "offending" the Chinese by charging them top dollar at the peak of the iron ore boom.
"The major producers here have offended the Chinese over the last few years and Chinese don't forget that," Mr Barnett said.
.Yeah it's called profit. The trouble is that kind of 'profit' needs to be qualified.
When you have made more money than what has been put into the business I call that profit.
You ask a simple question - Did the business make money or lose money when you count the total of what it cost compared to what it made
.So why the 'could?' That sentence screams one thing to me. - 'FMG won't clear much, if any of their debt, even if they can squeeze a %10 margin out of their lower grade IO whilst higher grade IO is trading with a roof of $60 on it's head
Maybe not.
Call it profit in your dreams. The reality is that FMG are about $20/tonne short of being able to pay off the debt if price does not rise. Lenders, scrambling like never before for yield, in the lowest interest rate environment ever, aren't willing to give FMG less than 10%. Hardly a vote of confidence in Twiggies business plan.
Wonder what FMG will be offered next time they try to role over debt when interest rates are likely to be more normalized.
Lower grades, smaller margins and no way of influencing the price of oversupplied IO.
Not quite the the captain of their own destiny when you scratch a little further below the dirt on the surface.
Im not surprised that they had to pay a premium on their interest given the current level of hysteria in the ore sector atm. They've secured funding at the height of uncertainty and paid a necessary higher price.
BHP the biggest IO minor on earth, secured more money for almost nothing virtually on the same day!!!!
If the difference between these models is negligible, why the chalk and cheese and why is Twiggy tearing his hair out?
- Money talks.
If Twiggy was sitting back with a smug grin on his face like Sam and co. I'd be a little more comfortable. Perhaps we could only argue, then, that banksters lose their ability to count when it comes to FMG. (unlikely)
:fanWell you made the list of comparables.
blinkers.
I guess the banks would have been heartened by BHPs recent oil investments, like in Petrohawk when oil was at $100.Copper? hmmm . What else is there? Potash! 500million take over cost for :bad: Well diversified indeed.
BHP the biggest IO minor on earth, secured more money for almost nothing virtually on the same day!!!!
If the difference between these models is negligible, why the chalk and cheese and why is Twiggy tearing his hair out?
?
Yeah it's called profit. The trouble is that kind of 'profit' needs to be qualified.
When you have made more money than what has been put into the business I call that profit.
You ask a simple question - Did the business make money or lose money when you count the total of what it cost compared to what it made.
So why the 'could?' That sentence screams one thing to me. - 'FMG won't clear much, if any of their debt, even if they can squeeze a %10 margin out of their lower grade IO whilst higher grade IO is trading with a roof of $60 on it's head.
Well Australia was offended by everything the Chinese communist party stands for and all that it does. Like paying 10,000 of it's students, occupying this country to take buses to Canberra and attack Australians including old women and children on the lawns of parliament house, during the Olympic flag relay.
Not to mention hacking into the reserve bank of Australia, after calling openly to the world, literally the day before, to end state based hacking!
There is no level we could stoop to, to offend the lowest example of humanity the world has had to put up with since humans began.
Rio Mines more Iron ore than BHP.
And what do you mean the difference between BHP and FMG is negligible?
"several" applications had recently been lodged with the Foreign Investment Review Board that would affect mining companies. The applications "raise the possibility of significant upheaval in the iron ore industry and ownership of sections of it over the next 12 months"
I'd rather be long on this rumor for the moment.
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