FORTESCUE METAL GRP (NASDAQOTH:FSUMF.PK)

This will be a $40 stock one day.

I've owned this for two years - it is 20% owned by China, but is located in Australia. I expect iron ore to be in large demand for years due to ongoing emerging market growth and in the short-term for rebuilding Japan. The Aussie will likely rise 5 to 10% against the dollar, adding to gains.

Fortescue has delivered on everything they say they will do. And, they do it on schedule, on budget. This company has in my opinion performed miracles! I am thoroughly convinced that there expansion will continue and sales to the Chinese will be a continuing source of revenue to finance that expansion.

poor management, poor infrastructure and an over valued metal

Excellent

At some point China will want to take over this company for it's raw mineral holdings.

The physical building of Fortesque Metals Group Ltd. Mining facilities started about five years ago and they shipped their first iron ore less than two years ago.

FSUMF has enormous "tenements" as they call them. We call them mining rights and they cover gigantic reserves in the Pilbara region of Western Australia.

FSUMF is still in the early, and very costly, stages of building their mining infrastructure. Several of their processes are industry innovations. They have a history of getting things done on time.

FSUMF is strategically located close to the worlds biggest ore customers: China, Korea, Japan. Shipping distance is about one-third the distance from Brazil.

FSUMF is currently in the process of building their second major mining hub and is constructing a major heavy haul rail spur to it. Production will jump when it opens late this year.

FSUMF can mine, clean and sort, transport and load on ship a ton of ore for less than $30. The current negotiated price paid by China is around $100 a ton and they don’t like it. China is trying to buy miners to get their costs down.

If the global economy recovers nicely FSUMF will be at center stage. Without economic recovery it will be a long slog paying down debt but they plan to emerge as the worlds low cost iron ore producer.

Red Raider is Lord

Broke the ore price for china and will be rewarded.

FSUMF is smart 3 year plus investment and will out perform most company 401K's. If your looking to expand your retirement portfolio with low risk and moderate gains then FSUMF is a good option fo you to research & consider.

LOVE THE POTENTIAL HERE. Purchased at 1.60.... looking for a ten

On June 02, 2009 at 8:44 PM, rhallbick (99.21) wrote:

So much movement since March in commodities makes me wary, but I do sort of buy into Jim Rogers' bullish outlook for them over the next 5-10 years. I would like to suggest a western Australian iron ore miner. Australia is on my personal list of top ten countries to invest in here. While everyone has been hit badly during the last year, Australia ranks very high in the soundness of their banking sector. They have large amounts of natural resources and are close trading partners with Asia.

FSUMF.PK

I became aware of Fortescue when an investment company I own, Leucadia National (LUK), became involved in the development of the project. The completion of the project roughly corresponded with the collapse of commodity prices in 2008, and then so followed their stock price. I do recommend it at the current level due to 1) other projects will be postponed by the financial crisis (supply side) and 2) Asia is now where the money is (demand side). They won't be receiving the same high prices in 2009 for their iron ore as they did in 2008, but I think they will perform well from here and I am also impressed with the accomplishments of current management. I think that anyone who is familar with this company would agree with this. Do your own DD.

I don't have any problem at this time in saying 5yr hold. If the situation changes, then I might also change my mind.

With China now taking the number 1 spot away from Detroit with everything to do with cars, I see this stock soaring in time. The Asian economies are booming and even though they will not be exporting as many goods, they will become consumers themselves. The Chinese have experienced a middle class lifestyle that they will continue to pursue and will not look back. Believe the Captain!

China infrastructure play.

I think that in a five year time frame it will outperform the S&P.

I recently unzipped my fly (and my wife's) with a substantial investment in a company (FSUMF) we think will reward us handsomely @ 2012. Of course it is dependent on China, India and other emerging nations need for iron ore, however the infrastructural projections are predictable! As a double play, we also invested in Guangshen Railway (GSH), a certain beneficiary of the Chinese economic infusion of cash. We predict FSUMF to be at US$23.89 by 3rd quarter of 2012. We also feel well enough about GSH to predict US$30.22 the same year.

Just had to include a real low priced holding with a China influence. Should give at least a 100% return.

I have owned this stock for a year or so. It has been a long ride down hill since. But I have averaged down to respectible level. They have an awful lot going for them if they can keep there debt paid. Paid in US dollars pay their help in AUD. Stock will improve 30 % if AUD recovers to last summers levels. Look at the cost of production compared to BHP and others on their web site on the ASX All New Equipment, blah blah blah.

For the Australian mining industries to survive and expand their operations, cash is needed. CHINA!!! There will be unrealistic resistance from the government and perhaps some of the larger players. Shut up, take the money, just make sure the t's are crossed and the i's are dotted!!!