Fortescue haemorrhages cheap dirt

David Llewellyn-Smith

Thursday, 26 July 2018

FMG is out with its latest production report and it’s not good news for the fan boys:

In short:

strip ratios and costs up with a bogus outlook for oil prices;
overburden up;
volumes up;
prices down and discounts up;
capex up to lift grades but only 60% even as BHP, RIO and Vale all do the same;
no detailed guidance.

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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.