Fortescue shocker: Costs up, prices down

Tuesday, 24 April 2018

The dream is over for FMG:

That assumed oil price is far out of the money and the risk is clearly for a miss on costs. The price realistion is in-line with recent guidance but it is still below it in this QTR and the risk remains that it, too, will miss.

And all of this before we get the big China slowdown through H2. The stock is -4.3% and falling.

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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.