Commodities Featured Article Iron ore price

Fortescue howls new suicide threat

Thursday, 29 January 2015

The much awaited FMG December production report is out and is impressive for the feeble-minded:

Looks good! Lot’s of dirt, though no improvement from previous forecasts. Costs down sharply on oil and set to tumble even further, down a full $10wmt from the September quarter on an annualised basis, taking the all-in breakeven to around $60dmt or even a bit lower.

Even the discounting has diminished from September QTR’s astonishing 21% to benchmark to a slightly less horrifying 15%.

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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.