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Yes, he has torched quite a bit of capital with pie in the sky green energy projects.
I take some solace from the fact that he will shut down a project when it becomes apparent that it is failing.
FMG - Fortescue Ltd
- Thread starter GreatPig
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I take some solace from the fact that he will shut down a project when it becomes apparent that it is failing.
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yes , the key for me is 'cheap'
it is not the 'woke ' or even 'green' that concerns me , it is the expenditure on new technology ( and research ) when the global economy is liable to contract
cutting/bleeding edge technology is called that for a reason .. investors are often hurt badly
and yes again , i hold a selection of miners big and small , some operate inside Australia and also some operate in Asia , some of those smaller miners have crazy ( compelling ) metrics
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from memory he didn't have a great success on nickel either
shut-down or moth-ball ? ( i suspect moth-ball until better ideas arrive )
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The thing is he'll pay for it, while the other competitors will learn from his mistakes.
My grandmother used to say, when you're the first to do something you make walking the path easier for others, as you've walked through all the prickle patches first. Twiggy is like one of those old draught horses with the blinkers on, so focused on what's in front of him but not reading the environment around him.
If I get close to my buy-in price, I'm never looking back and sure as hell glad that I didn't keep buying down into this mess, as other buys have been very profitable and this one a dismal fail. The SP might take off again, but it's going to be years before you see big gains with the price of IO.
If he were smart enough to diversify into gold and copper, he would have had enough to do anything he wanted to do.
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iron is a tough game , and worse still he is competing against giants BHP and RIO in the same geographical area , so they are more likely to buy any new quality discoveries , that FMG could acquire to upgrade efficiency , Twiggy did try adding nickel plays but that seems to have ended badly or did that just stall
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Everyone got burnt with Nickel.
The development of the Chinese funded cheap Nickel projects in Indonesia has mothballed many Australian projects
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Yearly Comp FMG pick No1 in the yearly comp, is continuing to drop but still a good investment vehicle I reckon. Hold for the divide and hopefully a SP increase later on.
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not as bad as some i hold BHP which took-over OZL ( crystallizing as profit ) , NIC and ATMEveryone got burnt with Nickel.
MCR take-over crystallized a profit , PAN was a disaster and WSA crystallized a loss
and what can i say , Australia has plenty of iron ,coal , uranium oil and gas , which could have been used to value-add to the nickel/steel production .. we had/have all the essential ingredients ( except high IQs in high places )
Good morning
Announcement today - the quarterly, see attached.
Kind regards
rcw1
Announcement today - the quarterly, see attached.
- Reported higher iron ore output and shipments in the three months to March, compared to the prior corresponding period, but the performance is weaker than the December quarter due to significant weather events;
- Mined 55.5 million tonnes of ore in the third quarter, a 19 per cent jump on the pcp, but a 10 per cent drop on the December quarter result of 61.9 million tonnes;
- About 46.1 million tonnes was shipped in the March quarter, up 6 per cent on the pcp, but a 7 per cent drop on the December performance;
- On a nine-month basis, Fortescue processed a record 146.7 million tonnes of ore and shipped a record 143.2 million tonnes;
- A review of the schedule for its struggling Iron Bridge operations to operate at its nameplate capacity of 22 million tonnes per annum is ongoing with the assessment “optimise the performance of the air classification circuit and downstream aerobelt conveyors” to be completed by June;
- Hematite average revenue for the quarter was US$87/dry metric tonne (dmt), with the cost of production at $US17.53/wet metric tonne (wmt), down 4 per cent on the December quarter;
- Chief executive Dino Otranto said the group is on track to deliver on its full year guidance of 190-200 million tonnes, including 5-9 million tonnes for Iron Bridge (100 per cent basis) at a production cost of $US18.50-$US19.75/wmt;
- Fortescue’s cash balance was $US3.3bn at the end of March;
- In the energy business, Fortescue Zero completed the production and shipment of the first T264 Power System to Liebherr from its production facilities in the UK;
- Fortescue Energy is continuing to progress and refine its green energy project pipeline with timelines adjusted to reflect global market conditions and uncertain policy settings following the election of US President Donald Trump and a shift in policies;
- Its Arizona Project and Gladstone PEM50 Project are being reassessed, with Fortescue expecting greater clarity on the impact of external factors on these projects by the end of the financial year; and
- FY25 guidance is for Fortescue Metals’ capital expenditure of $US3.5-$US3.8bn. Fortescue Energy’s net operating expenditure is forecast at $US700m and capital expenditure at $US400m.
Kind regards
rcw1
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It was good Quarter result for FMG. I wouldn't say brilliant but solid and reassuring.
The Market however seems to have really liked it. I think many people have decided that at $14-15 it was way over sold and that the dividends were still going to make it excellent value.
Up 5.7% at this stage.
The Market however seems to have really liked it. I think many people have decided that at $14-15 it was way over sold and that the dividends were still going to make it excellent value.
Up 5.7% at this stage.
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Spot on divs, when you have been around for a long time and seen a few things.
You realise nothing is forever. Lol
Shay Gap, Western Australia - Wikipedia
en.m.wikipedia.org
End of an era as last train from WA iron ore mine arrives at port
WA's Yilgarn region has been home to iron ore mining on and off since the 1950s, but the final trainload of the steel-making ingredient has arrived at Esperance Port.
www.abc.net.au
