Fortescue faces 70pc value hit from iron ore discount

Original article by Paul Garvey
The Australian – Page: 30 : 3-Nov-17

Fortescue Metals Group’s lower-grade iron ore is trading at a discount of about 30 per cent to the benchmark price. Sam Webb of Credit Suisse estimates that Fortescue’s net present value could fall to $A1.40 per share if the this discount persists. Webb adds that Fortescue’s future capital expenditure and exploration plans may be affected if the price discount is sustained until mid-2018. Credit Suisse has a share price target of $A6.10 on Fortescue. The stock rose 4.06 per cent to $A4.87 on 2 November.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CREDIT SUISSE (AUSTRALIA) LIMITED

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