No real surprise here. FMG has delivered a profits crash in line with expectations. H1 15 profits fell 81% to $US331 million. The average price for product was $66. The dividend was crushed from 10 cents to 3 cents. Production guidance was sustained at 155-160 million tonnes.
The good news is costs:
It’s a magnificent effort. One wonders what the oil price assumptions are! At $45 all-in costs, and using an iron ore grade discount of 15% (same as last QTR) applied to today’s $65 price, the firm will have a healthy H215 margin of $10 per tonne.
