Iron ore producer FMG rallied over 8% yesterday after delivering an excellent 3rd quarter update plus a shipments guidance upgrade – shipments were up 10% to 46.5 million tonnes, average revenue was up 34% to $US99.52 per tonne while costs were up only 3% quarter on quarter to $US15.78 per tonne i.e. that’s one nice gap of profitability! We now believe the risk/rewards is looking good for the bulls with a break under $20 required to question our interpretation plus the stock has the added tailwind of a Chinese government poised to press the infrastructure button big time.
MM is now bullish FMG short term looking for new highs in 2022
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