FMG - Fortescue Ltd

[rcw1]

Gotta love a trade like this!...well done Mate & may Mr Market give you a little more gravy to Enjoy with your Roast!

if rcw had waited another 24 hours would have been a quadruple gorilla swing trade ha ha ha ha ha ha ... but hey you get that ...

Kind regards
rcw1

 

[Value Collector]

FMG on decent run in the past few weeks. Closed at $19. Was down to $14.31 on June 23rd. Be interesting to see how the divvie pays out.

Quarterly Production figures out. Record sales /delivery of ore. Costs contained. Couple of the hydrogen projects killed.
Focus on producing Green Steel for Chinese buyers.

View attachment 204529
View attachment 204530 June 2025 Quarterly Production Report (PDF 280.0 KB)

I am guessing the divvy will be between $0.35 and $0.50 depending on payout ratio + franking credits.

 

[farmerge]

Full Year Comp
FMG showed SP improvement recently.
Still like this company going into the future.

 

[basilio]

Significant BIG decision by FMG today. They announced a syndicated 14.2 B REM ($2B US) loan from a group of Chinese banks.
On a commercial basis it supports the FMG/China joint ventures in developing Green Steel projects for their mutual benefit.

At the same time it signals that the current US policy of deliberating undermining green energy initiatives is unacceptable and a financial mistake.

SP has jumped so the "market" thinks its an OK deal

The interest is 3.8% .

FORTESCUE SECURES LANDMARK RMB 14.2 BILLION SYNDICATED TERM LOAN

Fortescue Ltd (Fortescue, ASX: FMG) today advises of the successful syndication of a Renminbidenominated (RMB) Syndicated Term Loan Facility of 14.2 billion (approximately US$2 billion) with participation from leading Chinese, Australian and international lenders.

This is the first RMB Syndicated Term Loan of its kind by an Australian corporate – a landmark transaction that reflects the depth of Fortescue’s long-standing relationships in China. Proceeds will be used for general corporate purposes and support Fortescue’s ambitious decarbonisation agenda, including partnerships with Chinese suppliers and technology leaders. Fortescue is a core supplier of iron ore to China and generates RMB revenues through its iron ore sales.

Fortescue Executive Chairman, Dr Andrew Forrest AO, said “This isn’t just a financial transaction. It’s a signal of what is possible when partners are aligned in ambition. As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution."

“China continues to lead the world in industrial scale and innovation. Fortescue shares that ambition and drive. This landmark RMB financing strengthens our long-standing partnerships with Chinese institutions and opens new frontiers for collaboration.” Group Chief Financial Officer, Apple Paget, said “This financing deepens our engagement with existing financial partners and further expands our banking syndicate to institutions with Renminbi lending capabilities. The exceptional demand through the syndication process is recognition of Fortescue’s strong credit profile, track record for operating excellence and disciplined capital allocation.

“It marks another milestone in execution of our capital management strategy, diversifying funding sources, enhancing flexibility and lowering our cost of capital, including achieving Fortescue’s lowest ever cost of debt. It reinforces our position as responsible custodians of capital.

Fortescue Secures RMB 14.2 Billion Syndicated Term Loan (PDF 150.6 KB)

 

[Value Collector]

Significant BIG decision by FMG today. They announced a syndicated 14.2 B REM ($2B US) loan from a group of Chinese banks.
On a commercial basis it supports the FMG/China joint ventures in developing Green Steel projects for their mutual benefit.

At the same time it signals that the current US policy of deliberating undermining green energy initiatives is unacceptable and a financial mistake.

SP has jumped so the "market" thinks its an OK deal

The interest is 3.8% .

FORTESCUE SECURES LANDMARK RMB 14.2 BILLION SYNDICATED TERM LOAN

Fortescue Ltd (Fortescue, ASX: FMG) today advises of the successful syndication of a Renminbidenominated (RMB) Syndicated Term Loan Facility of 14.2 billion (approximately US$2 billion) with participation from leading Chinese, Australian and international lenders.

This is the first RMB Syndicated Term Loan of its kind by an Australian corporate – a landmark transaction that reflects the depth of Fortescue’s long-standing relationships in China. Proceeds will be used for general corporate purposes and support Fortescue’s ambitious decarbonisation agenda, including partnerships with Chinese suppliers and technology leaders. Fortescue is a core supplier of iron ore to China and generates RMB revenues through its iron ore sales.

Fortescue Executive Chairman, Dr Andrew Forrest AO, said “This isn’t just a financial transaction. It’s a signal of what is possible when partners are aligned in ambition. As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution."

“China continues to lead the world in industrial scale and innovation. Fortescue shares that ambition and drive. This landmark RMB financing strengthens our long-standing partnerships with Chinese institutions and opens new frontiers for collaboration.” Group Chief Financial Officer, Apple Paget, said “This financing deepens our engagement with existing financial partners and further expands our banking syndicate to institutions with Renminbi lending capabilities. The exceptional demand through the syndication process is recognition of Fortescue’s strong credit profile, track record for operating excellence and disciplined capital allocation.

“It marks another milestone in execution of our capital management strategy, diversifying funding sources, enhancing flexibility and lowering our cost of capital, including achieving Fortescue’s lowest ever cost of debt. It reinforces our position as responsible custodians of capital.

View attachment 205630 Fortescue Secures RMB 14.2 Billion Syndicated Term Loan (PDF 150.6 KB)

Here is a good animation showing how a steel mill would make “Direct Reduced Iron” using hydrogen or Natural gas rather using coal in a blast furnace.

One the Iron Ore has been converted into “Direct reduced Iron” it can be melted into steel in an electric Arc furnace, to supplement the amount of scrap steel needed to be sourced, and offset the amount of pig iron needed.

 

[basilio]

Annual results out. Divvie is 80c per share. $1.10 in total for the year. Overall I think a very good result.

FY25 Full Year Results (PDF 337.4 KB) FY25 Full Year Results Presentation (PDF 6,541.8 KB)

 

[farmerge]

Annual results out. Divvie is 80c per share. $1.10 in total for the year. Overall I think a very good result.

View attachment 206870

View attachment 206871 FY25 Full Year Results (PDF 337.4 KB) View attachment 206872 FY25 Full Year Results Presentation (PDF 6,541.8 KB)

AS most shareholder would be more than happy with these results.
Well run and structured company delivering to Twiggy as the biggest shareholder and the peasants reap the benefits.

 

[basilio]

Typo in my FMG post. The Divvie for the second half of the year was 60c. Year total was $1.10

 

[divs4ever]

Annual results out. Divvie is 80c per share. $1.10 in total for the year. Overall I think a very good result.

View attachment 206870

View attachment 206871 FY25 Full Year Results (PDF 337.4 KB) View attachment 206872 FY25 Full Year Results Presentation (PDF 6,541.8 KB)

the market disagrees , currently down more than 2%

but hasn't dumped the shares low enough to tempt me to add to the holding

i don't know what the market expected in these volatile times , maybe they are reading predictions of a very storm-ridden Summer coming , somewhere

a quirk or the start of a trend ( lower ) , i guess time will tell

i hold FMG

 

[basilio]

the market disagrees , currently down more than 2%

but hasn't dumped the shares low enough to tempt me to add to the holding

i don't know what the market expected in these volatile times , maybe they are reading predictions of a very storm-ridden Summer coming , somewhere

a quirk or the start of a trend ( lower ) , i guess time will tell

i hold FMG

Yeah it has been a solid sell down on the market today. Realistically I can't see how the result could have been materially better.
I think the good buying price for FMG in the current environment was $17 or lower. It was certainly under that price for a fair time.

I think the next bit if significant news could come if the Sparc Solar Hydrogen reactor demonstrates a commercial capacity to produce cheap hydrogen, FMG has a 30% stake and Sparc has just commissioned its first Solar reactor to produce Hydrogen. Still a way to go of course.

Novel green hydrogen pilot plant wins $2.7 million grant

A Sparc Hydrogen photocatalytic water splitting reactor pilot plant under development in South Australia has been granted $2.75 million to accelerate development of the novel technology toward commercialisation.

www.pv-magazine-australia.com

Sparc Hydrogen | Green Hydrogen Australia | Photocatalytic Water Splitting

Sparc Hydrogen is developing next generation green hydrogen production technology using a process known as photocatalytic water splitting (PWS). This process is an alternative to producing green hydrogen via electrolysis, using only sunlight, water and a photocatalyst.

www.sparchydrogen.com

 

[Value Collector]

Typo in my FMG post. The Divvie for the second half of the year was 60c. Year total was $1.10

At today’s closing price, a $0.60 divvy represents a 9% yield inc franking, to equal CBA’s 4% yield, FMG’s share price would have to rise to $42.

 

[TimeISmoney]

This stock is punished by the conservatives, FMG has proved itself year after year, and yet a crummy stock like MIN is trading double its SP. Even GYG is trading more than FMG.

 

[divs4ever]

This stock is punished by the conservatives, FMG has proved itself year after year, and yet a crummy stock like MIN is trading double its SP. Even GYG is trading more than FMG.

you make that sound like a BAD thing

( i hold FMG @ $13.60 and MIN @ $13.92 )

good outcomes come for good decisions ( by yourself and the company management )

consensus may give you a warm supportive feel , but opportunities are there to be noticed and taken

sure i am apprehensive of the government grants being thrown about ( it lulls the adventurous into sloppier cost discipline )

but Twiggy is likely to try very hard to keep the iron business robust ( just don't blindly buy into any nickel plays that Twiggy does )

i never found GYG attractive probably for the same reason i avoided RFG

 

[mullokintyre]

This stock is punished by the conservatives, FMG has proved itself year after year, and yet a crummy stock like MIN is trading double its SP. Even GYG is trading more than FMG.

Always smarter/better to trade what the market actually does, not what we think it should do.
Mick

 

[TimeISmoney]

Always smarter/better to trade what the market actually does, not what we think it should do.
Mick

The big problem is that there's a lot of dumb money entering the markets, which is even known to be in the US. Once people get burned by the lies they don't come back, and money leaves the markets forever. This last year I've been trading by charts and barely look into company fundamentals. Everything seems to be public perception now, it's like what dopamine hit, some crazy article can give someone that a company is going to the moon until they lose their own pants.

 

[Value Collector]

Always smarter/better to trade what the market actually does, not what we think it should do.
Mick

Except that in the stock market following the facts rather than the crowd is far more profitable in the long run.

All of the life changing investments I have made in my life have been in the stocks that market is shunning for one reason or another at a certain point of time.

Following the crowd gets you into investments like CBA (which I do own and has done well), but CBA has massively under performed shares like FMG over time, in both capital growth and dividends. Taking "secure/safe" positions is expensive, taking the opportunities that are more volatile but produce the better longterm returns is more profitable.

 

[divs4ever]

The big problem is that there's a lot of dumb money entering the markets, which is even known to be in the US. Once people get burned by the lies they don't come back, and money leaves the markets forever. This last year I've been trading by charts and barely look into company fundamentals. Everything seems to be public perception now, it's like what dopamine hit, some crazy article can give someone that a company is going to the moon until they lose their own pants.

and a
lot of the dumb money is via super funds and ETF managers

not being a trader has certainly slowed down my buying activity in the last two years , many large/mid cap. stocks have unattractive metrics

 

[divs4ever]

Except that in the stock market following the facts rather than the crowd is far more profitable in the long run.

All of the life changing investments I have made in my life have been in the stocks that market is shunning for one reason or another at a certain point of time.

as have been some of mine , but others have just been luck ( and fund-manager fixation later )

the hard part is finding the stocks that endure a major dip without destroying the company business plan ( and directors strapping on the golden parachutes )

 

[mullokintyre]

The big problem is that there's a lot of dumb money entering the markets, which is even known to be in the US. Once people get burned by the lies they don't come back, and money leaves the markets forever. This last year I've been trading by charts and barely look into company fundamentals. Everything seems to be public perception now, it's like what dopamine hit, some crazy article can give someone that a company is going to the moon until they lose their own pants.

The market is dominated by the big players.
Every week/month millions of bucks of Super contributions get plonked into the funds, ad they have to find a home for it.
The retail market, that may or not get "burned", is but a blip.
They exist for the big players to extract money from.
Mick

 

[TimeISmoney]

The market is dominated by the big players.
Every week/month millions of bucks of Super contributions get plonked into the funds, ad they have to find a home for it.
The retail market, that may or not get "burned", is but a blip.
They exist for the big players to extract money from.
Mick

Of course, the markets are manipulated by big institutions. That's how they make their money; someone has to lose money in order for them to survive. Money doesn't pop out of thin air in the markets; otherwise all the brokering firms would be shut down. It would be similar to the Liehrman brother collapse but at a slower rate.

Brokers also make money from buying and selling for retail. The old rhetoric that big instos don't make much from retail is BS, I've heard retired brokers from large broking firms say they make money from large retail orders. The money they earn and pay out to other investors has to come from somewhere.