FMG - Fortescue Ltd
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previous announcements state that they have worked overtime in consideration of the cyclone so no dramas there
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Cyclones don't really have much of an effect on a mine site, even at Karratha it is just lock everything down, send everyone home and in a couple of days fire it all back up. They have everything stockpiled and ready to go, trust me dealing with cyclones is high on their list to minimize production losses.
The only time I could ever imagine a cyclone impacting on a share price is if a cyclone was to hit a site such as Pannawanica did with cyclone Olivia in the mid 90's.
The only time I could ever imagine a cyclone impacting on a share price is if a cyclone was to hit a site such as Pannawanica did with cyclone Olivia in the mid 90's.
Banking sector dragged the market down this afternon, CBA lost $3.20 per share, other banks tanked a little too, basically kills the mood a little accross the board. Regardless has been a good run lately for FMG with resource upgrade due March, Chinese interests in buying in (15% + ) and first shipment in May, its all dam good times ahead.
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WorleyParsons currently have immediate opportunities to join the expansion of the Fortescue Metals Group (FMG) Pilbara Iron Ore and Infrastructure project consisting of 260km of rail, mine operations and port facilities.FMG is the first company to develop a major iron ore start up project in Australia in decades.It is on track for the first iron ore shipment to depart Port Hedland in May 2008.
After setting an initial target of 45mpta the project is now entering the FEED stage for 100 mtpa and is set to begin feasibility of a further expansion to 200mtpa.
No Comments excepting the fact that Worley Parsons would not advertise like this: Opportunities to build up portfolio in WOR and FMG. I do not have any of them however (waiting for saturday's lotto winfall to recover the losses I have made in recent market turmoil to pay off my margin)
After setting an initial target of 45mpta the project is now entering the FEED stage for 100 mtpa and is set to begin feasibility of a further expansion to 200mtpa.
No Comments excepting the fact that Worley Parsons would not advertise like this: Opportunities to build up portfolio in WOR and FMG. I do not have any of them however (waiting for saturday's lotto winfall to recover the losses I have made in recent market turmoil to pay off my margin
)
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good news for FMG and other iron ore producers namely RIO, BHP, MMX, MGX
http://uk.reuters.com/article/oilRpt/idUKL176439220080217
UPDATE 1-Nippon Steel agrees to 65 pct iron ore price rise
BEIJING, Feb 17 (Reuters) - Japan's Nippon Steel (5401.T: Quote, Profile, Research) has agreed to a 65 percent rise in the price it will pay for iron ore under term contracts, effective April 1, industry sources and a Chinese steel industry website said on Sunday.
Term iron ore prices had been widely expected to rise by 50 percent or more, after spot prices soared to record highs in 2007 and Chinese steel mills' demand showed no signs of abating.
The rise could squeeze margins for the steel industry, which is already facing rising costs for coke, coal, and shipping.
"An international steel mill has concluded 2008 iron ore negotiations. The 2008 iron ore price will rise by 65 percent," steel industry website Umetal said late on Sunday.
Industry sources said Nippon Steel had concluded the deal. That company could not be reached on Sunday evening.
Traditionally, all steel mills accept whatever price is first settled by any steel mill and one of the three top miners, Brazil's Vale (VALE5.SA: Quote, Profile, Research) or Australia's Rio Tinto (RIO.L: Quote, Profile, Research)(RIO.AX: Quote, Profile, Research) and BHP Billiton (BHP.AX: Quote, Profile, Research)(BLT.L: Quote, Profile, Research).
Li Xinchuang, vice president of the China Metallurgical Industry Planning and Research Institute, confirmed a price had been set but did not confirm which companies nor what price level.
A deal would be announced this week, Chen Xianwen, deputy general director of the China Iron and Steel Association, said on Sunday, while also declining to confirm the price or parties to the deal.
http://uk.reuters.com/article/oilRpt/idUKL176439220080217
UPDATE 1-Nippon Steel agrees to 65 pct iron ore price rise
BEIJING, Feb 17 (Reuters) - Japan's Nippon Steel (5401.T: Quote, Profile, Research) has agreed to a 65 percent rise in the price it will pay for iron ore under term contracts, effective April 1, industry sources and a Chinese steel industry website said on Sunday.
Term iron ore prices had been widely expected to rise by 50 percent or more, after spot prices soared to record highs in 2007 and Chinese steel mills' demand showed no signs of abating.
The rise could squeeze margins for the steel industry, which is already facing rising costs for coke, coal, and shipping.
"An international steel mill has concluded 2008 iron ore negotiations. The 2008 iron ore price will rise by 65 percent," steel industry website Umetal said late on Sunday.
Industry sources said Nippon Steel had concluded the deal. That company could not be reached on Sunday evening.
Traditionally, all steel mills accept whatever price is first settled by any steel mill and one of the three top miners, Brazil's Vale (VALE5.SA: Quote, Profile, Research) or Australia's Rio Tinto (RIO.L: Quote, Profile, Research)(RIO.AX: Quote, Profile, Research) and BHP Billiton (BHP.AX: Quote, Profile, Research)(BLT.L: Quote, Profile, Research).
Li Xinchuang, vice president of the China Metallurgical Industry Planning and Research Institute, confirmed a price had been set but did not confirm which companies nor what price level.
A deal would be announced this week, Chen Xianwen, deputy general director of the China Iron and Steel Association, said on Sunday, while also declining to confirm the price or parties to the deal.
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yeah i am certain they have contracts lined up already
but think of the future contracts and potential of iron ore prices
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January construction report out:
- The First Ore On Ship (FOOS) date remains at mid May 2008 with overall project completion at 86% measured by value of work.
- Port works are 90% advanced with a major milestone achieved being the arrival and assembly of the pre-commissioned ship loader which was lifted into place over January 23 - 25.
- The mine site was 80% complete as at end January with continuing progress on the crushing and screening plants and the product load out vaults.
-Rail works were 85% complete at end January with the automated track laying complete to chainage 110 and a total of 4 manual track laying teams deployed along the rail line.
- Project Final Forecast Cost is $2,765 million which is an increase of $66 million from last period. The adjustment was primarily due to an increase in the estimated EPCM costs to WorleyParsons of $61.6m.
- The First Ore On Ship (FOOS) date remains at mid May 2008 with overall project completion at 86% measured by value of work.
- Port works are 90% advanced with a major milestone achieved being the arrival and assembly of the pre-commissioned ship loader which was lifted into place over January 23 - 25.
- The mine site was 80% complete as at end January with continuing progress on the crushing and screening plants and the product load out vaults.
-Rail works were 85% complete at end January with the automated track laying complete to chainage 110 and a total of 4 manual track laying teams deployed along the rail line.
- Project Final Forecast Cost is $2,765 million which is an increase of $66 million from last period. The adjustment was primarily due to an increase in the estimated EPCM costs to WorleyParsons of $61.6m.
seems to be costing more each month. just means it will be another month or so before there in the green. Looks like there roughly on schedule though that first ore is to be on train on March 15th not long to go so we should be hearing some good news soon like that they are stockpiling the Ore.
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Should I call it deliberate or printer's devil.
Reading the text of presenation by FMG to BBY business it says (my comments are within brackets) :
Existing Project –60mtpa (Figure is inconsistence. FMG started at 45 MTPA for which Worley Parsons was commissioned. THe original plan which is going to achieve by May (?) 2008 is actually 35 MTPA. Adding lump circuit the project will aim to deliver 55 MTPA).
First Ore on Ship March 2008 (This is interesting. Throughout the advertisement campaign etc FMG says the FOOS will be May 2008. Internal target howver is April 08. Now suddenly different story to Bombay investor is March 08) 2 Loading Berths;
1 Ship loader; 3.2mt stockpile; Single loop; 1 x 2 car train
unloader; Lump circuit (this is to catch up the short fall betwween 35 and 55 MTPA)
55 to 100mtpa – target 2009/2010 (this is a moving target. It is only recently Worley Parsons started recruiting people for 55 to 100 MTPA. So actual completion of 100 MTPA if at all will be not before mid to late 2010. I will strike my name out if FMG can achieve even 80 MTPA by 2009.
No criticism but do understand marketing hype. No matter what once, the production starts FMG share will rocketed up and only Chinese investor to come with additional fund. Why not if RIo can ask Chinese to rescue them what is wrong with Andrew?).
Reading the text of presenation by FMG to BBY business it says (my comments are within brackets) :
Existing Project –60mtpa (Figure is inconsistence. FMG started at 45 MTPA for which Worley Parsons was commissioned. THe original plan which is going to achieve by May (?) 2008 is actually 35 MTPA. Adding lump circuit the project will aim to deliver 55 MTPA).
First Ore on Ship March 2008 (This is interesting. Throughout the advertisement campaign etc FMG says the FOOS will be May 2008. Internal target howver is April 08. Now suddenly different story to Bombay investor is March 08) 2 Loading Berths;
1 Ship loader; 3.2mt stockpile; Single loop; 1 x 2 car train
unloader; Lump circuit (this is to catch up the short fall betwween 35 and 55 MTPA)
55 to 100mtpa – target 2009/2010 (this is a moving target. It is only recently Worley Parsons started recruiting people for 55 to 100 MTPA. So actual completion of 100 MTPA if at all will be not before mid to late 2010. I will strike my name out if FMG can achieve even 80 MTPA by 2009.
No criticism but do understand marketing hype. No matter what once, the production starts FMG share will rocketed up and only Chinese investor to come with additional fund. Why not if RIo can ask Chinese to rescue them what is wrong with Andrew?).
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AEGIS Weekly Focus
Fortescue Metals (FMG): Not out of the forrest but upside remains
FMG is the owner of significant iron ore resources and is scheduled to commence
shipping iron ore to customers in 4Q08. We have a 12-month price target of $8.03
on the stock.
Source: Proview / Aegis Equities
Company Risk: Share Price Risk: Ethical Rating:
What to do (Investors): BUY
China has embarked on a phase of rapid economic industrialisation, including an unprecedented
level of infrastructure development. We do not see any dramatic change in iron-ore demand, with
forward estimates suggesting that fixed investment in China will remain strong for the foreseeable
future. The current shortfall is being filled by high-cost domestic production.
What to do (Trader): Medium-Term BUY, target $8.75 FMG remains in a long-term uptrend, it remains above the August 2007 lows, and it has just generated another medium-term Buy signal. These point to the stock�s resilience over the past six
months. There are few stocks that have managed to stay above their long-term uptrends. The chart below disguises the magnitude of the price swings in the stock - it has actually risen 50% from the January lows. Given this we would not be surprised to see some profit taking in the short-term; but the longer-term outlook remains favourable.
Short-term HOLD / ACCUMULATE.
Fortescue Metals (FMG): Not out of the forrest but upside remains
FMG is the owner of significant iron ore resources and is scheduled to commence
shipping iron ore to customers in 4Q08. We have a 12-month price target of $8.03
on the stock.
Source: Proview / Aegis Equities
Company Risk: Share Price Risk: Ethical Rating:
What to do (Investors): BUY
China has embarked on a phase of rapid economic industrialisation, including an unprecedented
level of infrastructure development. We do not see any dramatic change in iron-ore demand, with
forward estimates suggesting that fixed investment in China will remain strong for the foreseeable
future. The current shortfall is being filled by high-cost domestic production.
What to do (Trader): Medium-Term BUY, target $8.75 FMG remains in a long-term uptrend, it remains above the August 2007 lows, and it has just generated another medium-term Buy signal. These point to the stock�s resilience over the past six
months. There are few stocks that have managed to stay above their long-term uptrends. The chart below disguises the magnitude of the price swings in the stock - it has actually risen 50% from the January lows. Given this we would not be surprised to see some profit taking in the short-term; but the longer-term outlook remains favourable.
Short-term HOLD / ACCUMULATE.
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Wow the close of the market really amazes me.
Right now, there are 3 orders to buy FMG at $15.00+
In fact all 10 orders to buy that I see on Commsec are above $8.
I don't know if they will go through today, be withdrawn or go through as a cross trade (do cross trades show on depth list?)
Probably some people trying to get inh at the last minute?
Anyway I'm happy to see FMG close up today
Right now, there are 3 orders to buy FMG at $15.00+
In fact all 10 orders to buy that I see on Commsec are above $8.
I don't know if they will go through today, be withdrawn or go through as a cross trade (do cross trades show on depth list?)
Probably some people trying to get inh at the last minute?
Anyway I'm happy to see FMG close up today
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Right now, there are 3 orders to buy FMG at $15.00+
In fact all 10 orders to buy that I see on Commsec are above $8.
doesn't that say something about the quality and demand for this stock in the short and longer terms?
RIO wants their 71% cut but China not happy chappy
FMG will benefit
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Yes and with the highly likely ann about to come out tomorrow about the Chinese investing in Cape lambert Iron which is also in the Pilbara, this might have a reflection on FMG's share price also.
Should be a good day tomorrow, though some resistance to get through at $8.
Should be a good day tomorrow, though some resistance to get through at $8.
It shot through the $8. Make me wish I hadn't sold out of it back at $7.10
Will it ever stop climbing up is my next question?
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it might stop climbing when the world knows how much money they are going to make each year.....but until then.
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It shot through the $8. Make me wish I hadn't sold out of it back at $7.10
Will it ever stop climbing up is my next question?
Well i got in at $7.70, the same day it hit those $8+ highs and was kicking myself for not grabing a quick 10%....so Ive been waiting ever since for it to get back to these levels
I'm thinking of using FMG to practice trading with.
I'd be happy to get 10% from week to week and build my money up re investing each time.
michael_selway
Coal & Phosphate, thats it!
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Well i got in at $7.70, the same day it hit those $8+ highs and was kicking myself for not grabing a quick 10%....so Ive been waiting ever since for it to get back to these levels
I'm thinking of using FMG to practice trading with.
I'd be happy to get 10% from week to week and build my money up re investing each time.
Hm do u think its getting a it expensive?
Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -2.6 -4.2 30.1 59.7
DPS 0.0 0.0 0.0 0.0
