Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So far they have paid $194m in dividends. At the current iron ore price and premium, it's around $220 per ton. With 12mt forecast for 2021, that's $2,640,000,000 in revenue. Not saying it will stay this high, but anywhere near this level the cash generation looks crazy!
Another great result. So far thats $194m paid out in dividends. Debt is in the way to being cleared, and iron ore prices are at record highs. If FXPO make $100 a ton profit (currently $180 + 44 premium), they will make $1.2B this year. Not hard to see how crazy dividends could go imo.
For 2021 if you assume a price of $150 a ton with the Fe premium and 12mtpa the profits are very impressive. Removing $40 a ton for costs. Then FXPO starts to looks insanely cheap again. I just hope the iron price stays high!
Tbh I'm not even sure how to value FXPO. I know for sure it was undervalued at £1B. But what price should it be? Considering its future profits, 55 year LOM, growth opportunities, dividends and all existing equipment etc.
Does anyone have any ideas?
Surely the higher this goes, the more likely finance or a takeover is. I don't think there is a seller here. If you look at the volume over the last few weeks it's fallen off a cliff. It's just boredom that's taking effect now.
I definitely think this is a matter of when and not if. They have been good with non dilutive funding so far. The world needs more Nickel, and for HZM it seems like they are in the right place at the right time imo.
Based on yesterday's price, with the 65% Fe pellets premium, it should be $151.70 a tonne ($105 for H1 if I remember correctly). I think we might need to wait until next year for the effect of the recent high iron prices to be realised by the market though. No way it should be trading at these levels imo.