Fortescue Metals Group (FMG)
Analyst: Michael Slifirski, Credit Suisse
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...