Shuffling the deck chairs on FMG and RIO

Tuesday 14 April 2015

A quick update here on the vital statistics of Fortescue and Big Fortescue (that is, RIO). After recent downgrades to the iron ore price, the sell side has reduced its outlook for RIO profits:

However, as you can see, consensus remains miles behind reality, even of current spot prices, let alone what’s coming.

Meanwhile, FMG’s bond prices have briefly breached 15% on the 2019 maturity:

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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.