From Reuters:
While the company and investors say it is not under immediate pressure, facing no bond repayments until 2017, Fortescue Chief Financial Officer Stephen Pearce told a UBS conference last week the company would be open to selling stakes in its mines.
“Fortescue is not engaged in any processes with banks around the sale of assets,” a spokeswoman said in an email.
Fortescue is now producing two-and-a-half times as much iron ore as it was in 2012 and has slashed its all-in production costs to the equivalent of $60 a tonne, compared with an iron ore price of $69.70.
“They aren’t under pressure now, but they could be. It’s a risk management
exercise,” said Rohan Walsh, a portfolio manager at Karara Capital, which doesn’t hold Fortescue shares.
$60? I don’t think so! $70 maybe. Probably not bad advice but, honestly, who’d buy? If I’m interested I’ll just wait and pick it up from the receiver.
