Fortescue Metals Group Limited’s (ASX:FMG) founder and chairman Andrew Forrest has affirmed the demand for iron ore remains robust and will trade at an average price of more than $US100.
The comments come after reports emerged last week that renowned American hedge fund manager Jim Chanos had labelled Fortescue a ''value trap'' stock.
Responding to the reports, Mr Forrest says the iron ore price may fall to as low as $US90, but investors should not be surprised to see prices trade at more $US100 over the next five to 10 years.
Fortescue is currently undertaking a ramp up to nearly triple production to 155 million tonnes per annum by 2013.
Shares in Fortescue Metals Group dropped 0.88 per cent on Friday, finishing the week at $5.63.
Fortescue Metals reported a net profit of $789 million in the first half of its 2012 financial year.
