- Joined
- 20 July 2021
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i am expecting finance to become scarce and very predatory , now FMG has a fair chance of being self-funding from here , so maybe down-sized future projects should be factored in ( and you can be delighted by any over-achievement )Yep, firstly Forrest says it’s $50 Billion not $100’s of Billions.
But what is your point, I read that announcement the day it was released, it’s a non binding MOU, they aren’t locked into anything. Both companies are just committing to work with each other towards the goal of shipping hydrogen from Australia to Europe. If 2030 comes and FMG is only shipping 1 million tonnes instead of 5 million tonnes there is no penalty.
As I said FMG will just crunch the numbers on each project, line them up in order of most profitable, and start working on them, and as long as each one produces decent returns on capital FMG will do very well and financing them will be easy.
But, there is no penalty if they don’t achieve all projects they can dream up in the next 10 years, a big part of a company like FMG, BHP, RIO etc etc is lining up as many possible projects as you can and then have them compete for capital, and you allocate capital to each project based on its merit, when you have the funding to do it.