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I've answered one of my questions from above, looking at the last half year results report.

The report quotes the price achieved for the half year as:
62% CFR Platts Index price of US$118 per dry metric tonne

Looking at their sales revenue and tonnes shipped figures for the half year, they achieved revenue of approx $94 per tonne shipped, so we can conclude that the price achieved for ore shipped is approximately 80% of the 62% CFR Platts Index price they quoted.

Looking at their most recent presentation they reckon I'm concluding that they reckon they can get their total operating costs down to US$60 per dry metric tonne.

I'm going to do some number crunching. At a guess I don't think that FMG is as compelling an iron ore play as RIO but I don't think that the pessimism around FMG being a going concern in the long run is warranted either. If they keep their landed costs lower than Vale then they win.

Of course the debt gearing will always be a deterrent. It is currently at around $12.5 billion? What is it likely to be by the time they are at full production?

I'm thinking out loud here - a correction of the gold price -> correction of AUD -> realignment of AUD and terms of trade -> opportunity to go long iron ore?

<blockquote data-quote="tinhat" data-source="post: 771604" data-attributes="member: 26249">I&#039;ve answered one of my questions from above, looking at the last half year results report.The report quotes the price achieved for the half year as:62% CFR Platts Index price of US$118 per dry metric tonneLooking at their sales revenue and tonnes shipped figures for the half year, they achieved revenue of approx $94 per tonne shipped, so we can conclude that the price achieved for ore shipped is approximately 80% of the 62% CFR Platts Index price they quoted.Looking at their most recent presentation they reckon I&#039;m concluding that they reckon they can get their total operating costs down to US$60 per dry metric tonne.I&#039;m going to do some number crunching. At a guess I don&#039;t think that FMG is as compelling an iron ore play as RIO but I don&#039;t think that the pessimism around FMG being a going concern in the long run is warranted either. If they keep their landed costs lower than Vale then they win.Of course the debt gearing will always be a deterrent. It is currently at around $12.5 billion? What is it likely to be by the time they are at full production?I&#039;m thinking out loud here - a correction of the gold price -&gt; correction of AUD -&gt; realignment of AUD and terms of trade -&gt; opportunity to go long iron ore?</blockquote>

[QUOTE="tinhat, post: 771604, member: 26249"] I've answered one of my questions from above, looking at the last half year results report. The report quotes the price achieved for the half year as: 62% CFR Platts Index price of US$118 per dry metric tonne Looking at their sales revenue and tonnes shipped figures for the half year, they achieved revenue of approx $94 per tonne shipped, so we can conclude that the price achieved for ore shipped is approximately 80% of the 62% CFR Platts Index price they quoted. Looking at their most recent presentation they reckon I'm concluding that they reckon they can get their total operating costs down to US$60 per dry metric tonne. I'm going to do some number crunching. At a guess I don't think that FMG is as compelling an iron ore play as RIO but I don't think that the pessimism around FMG being a going concern in the long run is warranted either. If they keep their landed costs lower than Vale then they win. Of course the debt gearing will always be a deterrent. It is currently at around $12.5 billion? What is it likely to be by the time they are at full production? I'm thinking out loud here - a correction of the gold price -> correction of AUD -> realignment of AUD and terms of trade -> opportunity to go long iron ore? [/QUOTE]

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