All that is true, but for every Elon Musk ad TSLA there are a lot more failures like Trevor Milton and Nikola, or Adrian Nueman and WeWork, or as locally with Ralph Sarich and the orbital Engine co.I'm sure many people on ASF have been familiar with leaders like this. It isn't a safe process. It isn't comfortable. But it is exciting. It can produce outstanding results. Elon Musk and Tesla come to mind as an example of such an approach.
However I suggest that whatever happens with FFI, the meat and potatoes element of FMG (iron ore) will still be making a ton of money for years to come. At the very minimum the renewable energy projects that strip out hundreds of millions of dollars in operating costs will be effective and enhance the profitability of iron ore sales. These will not go away. If people are looking for a narrative this ongoing element of the company underpins the financial returns investors can realistically bank on.
The FFI component will add substantial value to these operations as noted and could evolve to the vision Twiggy envisages.
now i know i sound like a 'doom merchant ' but i see iron demand ( exports from Australia ) declining from various anglesThe reality is that Twiggy owns 37% of FMG and is for all intents and purposes the driver of the direction and processes in FMG.
He is determined to move heaven and earth to make renewable energy the future cornerstone of the company and at the very least make a healthy profit. ( Frankly I can't see how any project short of printing money can be more profitable than mining 180m tones of iron ore a year at $17$ a ton and selling it for the prices they were getting last year.) In that context he will create totally unrealistic deadlines and his employees will have to somehow produce results.
I'm sure many people on ASF have been familiar with leaders like this. It isn't a safe process. It isn't comfortable. But it is exciting. It can produce outstanding results. Elon Musk and Tesla come to mind as an example of such an approach.
However I suggest that whatever happens with FFI, the meat and potatoes element of FMG (iron ore) will still be making a ton of money for years to come. At the very minimum the renewable energy projects that strip out hundreds of millions of dollars in operating costs will be effective and enhance the profitability of iron ore sales. These will not go away. If people are looking for a narrative this ongoing element of the company underpins the financial returns investors can realistically bank on.
The FFI component will add substantial value to these operations as noted and could evolve to the vision Twiggy envisages.
now i know i sound like a 'doom merchant ' but i see iron demand ( exports from Australia ) declining from various angles
1. the natural downturn in the mining super cycle ( symptomatic of a slowing global economy )
2. an ever-warming up of a war with China ( the trade war first , maybe a hot war later )
3. rising costs in Australia , possibly offsetting a sliding Aussie sliding dollar
4. the return of Vale iron projects to full production
5. iron projects from less developed regions ( like Mongolia and Africa ) coming into full production
i would prefer that FMG not get too impatient pushing the 'green projects ' and perhaps starving the iron/port infrastructure of timely maintenance ( but i suppose if FMG keeps too much in cash reserves , some shareholders will agitate for increased divs and buy-backs )
Trevor Milton was a deceitful dangerous crook. He nearly took GM down with himAll that is true, but for every Elon Musk ad TSLA there are a lot more failures like Trevor Milton and Nikola, or Adrian Nueman and WeWork, or as locally with Ralph Sarich and the orbital Engine co.
Mick
Of course he will, just some facts from me todayHave been watching and hoping VC will jump in sooner or later with some positive words ?
And just to underscore that, according to the Evil murdoch press Forrest has been defending Chinas role in being the largest carbon Polluter on the planet.Going full sail narrative..how much is FMG going to suck from our tax dollars.Andrew Forrest says big companies are 'forcing' customers to 'destroy the planet'
Australian mining magnate Andrew "Twiggy" Forrest has accused energy companies and businesses selling single-use plastics of forcing customers to "destroy the planet".www.abc.net.au
There is no way Twiggy is believing that. So he is walking the line:
Either to be on the receiving end of our taxes , or the madness in power is such that he sees this as the only way an Aussie company can survive.
And while it is true plastic currently can only be recycled 3 tomes or so, it is just a matter of which plastic we use
So a choice..real science or the plastic straw scamHow Many Times Can Plastic Be Recycled?
You would be forgiven for thinking that every time you throw a plastic bottle into the recycling, it will eventually be reincarnated as another plastic bottle. Unfortunately, that’s not quite how...www.envirotech-online.com
I would prefer Twiggy to push for science and technology more than parrotting the Greta line, but have to acknowledge it might be the wise business move.
Volkswagen did the right choice business wise in 1930s going with the Nazis as did Bayer BMW etc . The one which did not and objected are not here anymore.
Yea, Nah. Sorry mate, but either we get rid of fossil fuels or we don't.Andrew Forrest has defended China, saying Beijing does “care about” what the West thinks of the country's “nightmare” track record of burning coal.
“Look, they absolutely do care. We're being caught in the crossfire between North America and China here … If we could have peaceful, mutual engagement, I think you would see China taking a more proactive stance,” the founder of Fortescue Metals Group told the ABC’s 7.30 program on Monday, the first day of the COP27 in Egypt.
“China is building coal-fired power stations. I'm desperate to try to stop them from doing that, but at this stage, I don't have the solution. I'm working feverishly … to get them solutions and so are other entrepreneurs in China.
“If people want to educate their kids or switch on the lights or turn on a hospital, then unfortunately they go to coal. That's our fault. We need to deliver the non-fossil fuel energy into them so we give them a choice.”
i am expecting the West to try to turn Africa into the 'manufacturing heart ' NWO ( keep the population under-educated and the land full of waste and pollution .. the main reason became the previous 'manufacturing heart ' ) , am not sure how much iron ore is in Africa but they have a fair bit of coal and oil ( and other base metals )Of course he will, just some facts from me today
Europe unable to carry on steel production: lower demand and exploding energy price...Énergie : ArcelorMittal va arrêter temporairement un de ses hauts-fourneaux de Fos-sur-Mer
La baisse de la demande d'acier et l'inflation touchant l'énergie poussent l'industriel à limiter son activité.www.lefigaro.fr
Do not expect the Chinese foundry demand to be replaced by the EU
it does in 'Murdoch World ' i have worked there , ( rules for thee but not for me )And just to underscore that, according to the Evil murdoch press Forrest has been defending Chinas role in being the largest carbon Polluter on the planet.
Yea, Nah. Sorry mate, but either we get rid of fossil fuels or we don't.
You cannot possibly pretend that CO@ emissions from Australia or Europe are somehow different or worse than those emitted from China. "The Science(TM)" does not work that way.
Mick
The thing that separates FMG, is they aren’t just a cash burning IPO, they have a solid cash producing Iron Ore business.All that is true, but for every Elon Musk ad TSLA there are a lot more failures like Trevor Milton and Nikola, or Adrian Nueman and WeWork, or as locally with Ralph Sarich and the orbital Engine co.
Mick
China’s emissions on a person basis is actually lower than America and Australia, so it can be a bit misleading to call them the biggest polluters, especially if you factor in that a lot of their energy use is used to export products we use, so the pollution is really attributable to us, and not them.And just to underscore that, according to the Evil murdoch press Forrest has been defending Chinas role in being the largest carbon Polluter on the planet.
Yea, Nah. Sorry mate, but either we get rid of fossil fuels or we don't.
You cannot possibly pretend that CO@ emissions from Australia or Europe are somehow different or worse than those emitted from China. "The Science(TM)" does not work that way.
Mick
Statistics can be misleading.China’s emissions on a person basis is actually lower than America and Australia, so it can be a bit misleading to call them the biggest polluters, especially if you factor in that a lot of their energy use is used to export products we use, so the pollution is really attributable to us, and not them.
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But either way, China is also a leader in developing renewable energy too, they are moving in the direction of renewables too, it just takes time.
i don't know about 'useful idiot' , with my dealings with Chinese , if you stick to your deals and are a reliable trading partner/customer things go very smoothly , BUT Chinese class haggling as a national sport , so if you want to play rough'n'tumble , they have strategies for that as well .( including zero-Covid policies , i suspect )Andrew Forrest is the useful idiot for China, doing China's bidding. He doesn't mind though as they give him lots of money for it. It's all business.
Yes, that is one of the reasons we have exported our pollution there.. You can't imagine till you experience it first hand.
The thing that separates FMG, is they aren’t just a cash burning IPO, they have a solid cash producing Iron Ore business.
Not to mention, they aren’t reinventing the wheel, a large portion of their move to renewables is low risk proven technology.
Eg,
1. Installing solar panels, wind turbines and batteries to reduce and eventually eliminate the need to burn diesel and natural gas to generate electricity for their operations is pretty straight forward.
2. Converting a bunch of ICE based trains and mining equipment to Battery electric or Hydrogen is still pretty low risk investment in the grand scheme of things.
When it comes to producing hydrogen for export, and electro fuels etc that is more speculative, but not totally off the charts and as I said in earlier posts, if the hydrogen stuff was a complete bust it’s not a 100% loss, because all the solar and wind installed for the hydrogen project can still be used to generate electricity for other purposes.
I just hope it doesn't end up like our coal and gas resources, all for export and stuff all for us.
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