FMG shares pop on secret volumes

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From the AFR:

Shares in Fortescue Metals Group have surged shortly before midday, after the iron ore miner published aggressive production guidance for the 2015 financial year.

Fortescue has told investors it could produce as much as 160 million tonnes in the new financial year, suggesting the capacity of its export system is not limited to 155 million tonnes as previously thought.

Hmmm…a 3% rise in output versus the deluge and falling price ahead. Not that is matters overly but if another 5 million tonnes knocks a tiny fraction off the spot price then margins and profits will actually fall.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.