Replies to post #88791 on Cotton & Western Mining Inc. (CWRN)

[surebob]

and FMG- fortescue-had margin costs of ca 100 also - which is why they yelled the loudest re the new may 2012 30% australian export tax -so these are the average cost prices for the co's

What Happened to the Fortescue Metals Group Share Price?

Shares of Fortescue Metal Group [ASX:FMG] fell 2.16% to $4.53 today. The iron ore price is trading at US$94.00 per tonne. This represents a profit margin of roughly $14 dollars per tonne for Fortescue.

Why Did This Happen to Fortescue Metals Group?

Fortescue Metals Group Ltd is an iron ore production and exploration company with assets located in the Pilbara region of Western Australia.

Like many other iron ore operators, Fortescue’s share price has struggled recently. The company’s share price has fallen by 18% since the beginning of this year.

Fortescue is effectively a leveraged play on the iron ore price. Although it has two issues:

1) Fortescue has a high cost of production for a large miner. Analysis suggests that if the iron ore price falls below US$80 per tonne, Fortescue would lose money.