Andrew Forrest and his leadership team have taken the biggest step yet in their search for a volatility-proof balance sheet. But the asset sales risk undermining their production costs.
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Comments PolicySince when did Fortescue ever have a cost advantage? Fortescue was based on there being a margin between the selling price of iron ore and their high development cost (Is Fortescue selling out its costs advantage? December 7). BHP and Rio always had the best deposits and their infrastructure was paid off long ago. Being at the upper end of the cost range and the lower end of the quality spectrum, Fortescue will remain vulnerable to price falls until it pays off its development costs.
Another miner that borrowed big,and that now has to pay back the money on a lessened income. it's not andrew forrest's money,but the shareholders that are once again hard hit. (Is Fortescue selling out its costs advantage?, December 17).