Buy, Sell, Hold: FMG, IGO and Galaxy

THREE of the biggest stories this week were FMG’s new mine, and IGO and Galaxy’s divestments.

Buy, Sell, Hold: FMG, IGO and Galaxy Buy, Sell, Hold: FMG, IGO and Galaxy Buy, Sell, Hold: FMG, IGO and Galaxy Buy, Sell, Hold: FMG, IGO and Galaxy Buy, Sell, Hold: FMG, IGO and Galaxy

Fortescue Metals Group (FMG)

Analyst: Michael Slifirski, Credit Suisse

Recommendation: Outperform

Price target: A$5.75

Thursday's close: $4.69

Reason: Rolling out the optionality...

Comments: FMG today announced Eliwana (the replacement for Firetail) has received board approval for mine development and the associated rail project. The project which will underpin a new 'Fortescue Premium' product, with an Fe content of 60%, will include a 143km rail line, a new 30Mtpa ore processing facility and associated infrastructure. A replicate product is to be trialled in 2H-FY19 (i.e. June 2019) using existing ores (Firetail, Cloud Break, Chichester) in order to test the market and potential pricing premiums vs the existing FMG b...

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