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This is one of my favourite companies at the moment. Based on my analysis it is grossly undervalued. It is being undervalued I think because of a fear the price of iron ore may collapse, however if FMG are able to keep their costs down and clear a $20 / tonne profit, I can see them being worth a lot more than they are trading at now, and they are currently making a lot more than $20 per tonne.The Kings deposit mine is due to begin ramp up this quarter and with the production from the firetail mine this years profit should be a decent one. But I expect a major rerating leading up to the reporting of the first full years production from all four mines being reported in July 2015, between now and then or perhaps shortly after we should see FMG over $10 / share perhaps even as high as $15.00.I hold FMG.
This is one of my favourite companies at the moment. Based on my analysis it is grossly undervalued. It is being undervalued I think because of a fear the price of iron ore may collapse, however if FMG are able to keep their costs down and clear a $20 / tonne profit, I can see them being worth a lot more than they are trading at now, and they are currently making a lot more than $20 per tonne.
The Kings deposit mine is due to begin ramp up this quarter and with the production from the firetail mine this years profit should be a decent one. But I expect a major rerating leading up to the reporting of the first full years production from all four mines being reported in July 2015, between now and then or perhaps shortly after we should see FMG over $10 / share perhaps even as high as $15.00.
I hold FMG.
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