FMG - Fortescue Ltd

[prawn_86]

think its going to be the first company in history who's income exceeds its market cap...

Nope, already seen a few of them. Just have to dig around a bit. Already a heap of companies with cash exceeding market cap.

 

[Frankhalo]

funny how you didnt answer my original question frank , by the way what date is FMG,s due debt repayment due ? pretty sure theres one due soon

Nunny I imagine FMG dont need to repay the billions they have used to build this project in the first year of operation, as many seem to think is the case.
Yes there is debt, no arguements here but on the flip side there is also income in US dollars , I imagine the accountants at Fortescue are pretty switched on and contracted replayments are at hand, I have not read otherwise, 600 million in the bank so far which is pretty healthy too. Sorry I didn't answer your original question, cost to produce was answered correctly by someone else. But hey, what do I know, I'm just a simple tradesman

 

[Frankhalo]

Nope, already seen a few of them. Just have to dig around a bit. Already a heap of companies with cash exceeding market cap.

Damm, thanks Prawno, point me in the right direction and I'll buy some of those shares...

Just goes to show how messed up the current market is on a serious note.

 

[nunthewiser]

Nunny I imagine FMG dont need to repay the billions they have used to build this project in the first year of operation, as many seem to think is the case.
Yes there is debt, no arguements here but on the flip side there is also income in US dollars , I imagine the accountants at Fortescue are pretty switched on and contracted replayments are at hand, I have not read otherwise, 600 million in the bank so far which is pretty healthy too. Sorry I didn't answer your original question, cost to produce was answered correctly by someone else. But hey, what do I know, I'm just a simple tradesman

nah m,8 , not saying they have to pay it all back in the first year , just saying im pretty sure off top of head from previous research they due a repayment soon , scrolling thru at present but geez its been years since i looked at there anns and boy havent they had a few since might pay to keep in mind around accounts time

tradesmen are what keep australia ticking

 

[Frankhalo]

nah m,8 , not saying they have to pay it all back in the first year , just saying im pretty sure off top of head from previous research they due a repayment soon , scrolling thru at present but geez its been years since i looked at there anns and boy havent they had a few since might pay to keep in mind around accounts time

tradesmen are what keep australia ticking

Best I could find Nun, doesn't sound too techincal and at best maybe an all to simple guide, by no means claiming this is 100% true or false, taking this on face value only.

"Fortescue Metals. In 2006, it raised $2.7 billion of junk bonds to fund its iron ore project. Since the raising was in US dollars and euros, the debt would equate to $3.2 billion at today's exchange rate.

The bonds will mature between 2011 and 2016, meaning the total repayment is not an immediate liability, but it is paying annual interest of around 10 per cent. "

Good read if you get the chance.

http://business.smh.com.au/business/high-debt-prelude-to-a-hammering-20081116-683i.html

 

[nunthewiser]

Best I could find Nun, doesn't sound too techincal and at best maybe an all to simple guide, by no means claiming this is 100% true or false, taking this on face value only.

"Fortescue Metals. In 2006, it raised $2.7 billion of junk bonds to fund its iron ore project. Since the raising was in US dollars and euros, the debt would equate to $3.2 billion at today's exchange rate.

The bonds will mature between 2011 and 2016, meaning the total repayment is not an immediate liability, but it is paying annual interest of around 10 per cent. "

Good read if you get the chance.

http://business.smh.com.au/business/high-debt-prelude-to-a-hammering-20081116-683i.html

intresting article , i may have it wrong re debt payment as ive scrolled and searched and cant find any due 08/09 , my mistake i must be confused with another company i been looking at .

cheers

 

[Rhynoceros]

funny how you didnt answer my original question frank , by the way what date is FMG,s due debt repayment due ? pretty sure theres one due soon

They have quarterly interest repayments due on the 1st December on a US$250 Million secured note, calculated at the 3 month LIBOR rate + 4% per annum and obviusly the remaining 2 quarters are on the balance sheet as a current liability. FMG's current liability in their financials (Would have risen considering downward movement in AUD since) was $358,294,000.

Large chunck of debt payable in 2011

Some of their debt interest is tied to a % of revenue. They also have a US$200 Mil Syndicate loan which they've drawn a NIL amount from i guess this gives them access to funds if needed..

 

[nunthewiser]

They have quarterly interest repayments due on the 1st December on a US$250 Million secured note, calculated at the 3 month LIBOR rate + 4% per annum and obviusly the remaining 2 quarters are on the balance sheet as a current liability. FMG's current liability in their financials (Would have risen considering downward movement in AUD since) was $358,294,000.

Large chunck of debt payable in 2011

Some of their debt interest is tied to a % of revenue. They also have a US$200 Mil Syndicate loan which they've drawn a NIL amount from i guess this gives them access to funds if needed..

well well well , you certainly are a fountain of research , well done.... do you hold FMG ?

thanks for your time on it also

 

[KFC soup]

They have quarterly interest repayments due on the 1st December on a US$250 Million secured note, calculated at the 3 month LIBOR rate + 4% per annum and obviusly the remaining 2 quarters are on the balance sheet as a current liability. FMG's current liability in their financials (Would have risen considering downward movement in AUD since) was $358,294,000.

Large chunck of debt payable in 2011

Some of their debt interest is tied to a % of revenue. They also have a US$200 Mil Syndicate loan which they've drawn a NIL amount from i guess this gives them access to funds if needed..

i think the large chunck of debt payable in 2011 is only the us$250mil notes
the rest is in 2013 2016 2019

any increase in liability in usd debt isn't much of a worry when most of the iron ore shipped is paid in usd

what we do have to worry about is when the super fines drop further, cutting in on the profit margin, and fall short of analyst expectation, then the stock wont bunce back up.

forrest should really be focus on building stronger relationships for march contracts, which i'm sure is part of the reason he's in china or hopefully anyway

 

[oldblue]

Damm, thanks Prawno, point me in the right direction and I'll buy some of those shares...

Just goes to show how messed up the current market is on a serious note.

Hi Frank.

I know this is the wrong thread but you could start by having a look at PPP. Sp 20c; cash per share 25.5c as at 30 September; still pulling in net cash from the Tui field.
But DYOR.

 

[Rhynoceros]

well well well , you certainly are a fountain of research , well done.... do you hold FMG ?

thanks for your time on it also

No problem.
And yes i do hold FMG I got in at below $1.80 and fully acknowledge their a high risk stock.

I intend to hold long term as IMO they have exceptional potential and to be honest i don't care what happens in short term.

 

[nunthewiser]

No problem.
And yes i do hold FMG I got in at below $1.80 and fully acknowledge their a high risk stock.

I intend to hold long term as IMO they have exceptional potential and to be honest i don't care what happens in short term.

no worries and fair enough, i hope they work out well for you , good to see unbiased factual research from a holder here , kinda refreshing actually

have a good day

 

[ASX_newbie]

Isn't FMG is going to come down $0? My trading history was

$7.52 buy , $8.01 sell
$7.32 buy, in hold
$5.8 buy , in hold
$2.8 buy, $2.58 sell
$1.6 buy, ....
seems every buy is like gamble.
What boldy FMG is going on? Can anyone help me out? Maybe GOD can only.

In fact I got lots of infomation from China that Government is intending to put billions money into domestic infrastructure. There should have high demands for metal. Why Mining sector here has dropped like this?

 

[prawn_86]

Why Mining sector here has dropped like this?

Check back through this thread for your answers or run a search on your questions

thanks

Prawn

 

[SenTineL]

i can undersand the frustration though ASXnewbie

it's like the **** has fallen out of it
i'm waiting for the stem of the bloodflow any day now...

 

[njc.corp]

Champ - I wish you all the best !

If its not the bottom its got to be close - go get em

I dont think I can join you yet though

What facts have u got that it is close-

why are people so interested in working out a bottom or a top-- does it matter--

someone teach me something has i cant work this out-

why dont we just have a look at the price right now- and lets talk about 15% down day today---------

in the past i was a holder- so dont think i am just talking it up---

 

[champ]

Im pretty sure the rampers here and the people still trying to work out the fundamental positives on this stock are still trying to pick themselves up off the floor. The facts are that theres a lot of pain still to come regardless of how good a company looks, fundamentals and charts mean absolutley nothing right now.

 

[nunthewiser]

, fundamentals and charts mean absolutley nothing right now.

can i say "what a load of bollox " in this thread guys ? charts pointed out this fall aNd was pointed out , fundamentals point to the bleeddin obvious at present as obviously the market thinks its overpriced for what its is AT the moment , ppl factoring in the worse place scenarios re contracts /prices/debt/NTA/eps and allsorts of FUNDAMENTAL factors

thanks champ

 

[champ]

Ok, so i guess the chart for every single stock on the asx has said the same thing, that is amazing!!! The fundamentals for every stock on the ASX have said down down down, wow what a coincidence.

 

[ASX_newbie]

What facts have u got that it is close-

why dont we just have a look at the price right now- and lets talk about 15% down day today---------

the slump trend has been making me to suspect what hell is happening inside company. Is it oversold?

the most recent trend is heaps weaker than the trend of market. right now fundanmentals, charts don't make any sense.

why other market in China or USA or other Asian countries has been recovered a little bit, but ASX has kept going down and down?

WHERE IS THE BOTTOM?!!!