FMG - Fortescue Ltd

[Sean K]

Wonder how he's going to get away with this?

Is it jail material? Or a slap on the wrist, and a fine? Banned as a company dirctor? Looks pretty ordinary.


Fortescue knew Chinese deal was dead, documents show
April 29, 2009
Article from: Australian Associated Press

FORTESCUE Metals Group knew a deal with a Chinese company had collapsed a month before a newspaper article forced the miner's admission, court documents show.

Documents released by the Federal Court in Perth show Fortescue received a fax from China Metallurgical Construction (Group) Corporation on February 3, 2005, advising that a deal with the iron ore miner was off.

But Fortescue did not announce to the stock exchange that its so-called "binding" deal with MCC had collapsed until a newspaper article on March 24, 2005, forced its hand.

In the documents released yesterday, former Fortescue executive assistant Wei Fisher said in a witness statement company chief executive Andrew "Twiggy" Forrest was "very upset" when he received a fax from MCC saying the deal was off. Her statement alleges she heard Mr Forrest say words to the effect: "This is ridiculous. If anyone tells the press, we've had it."

Her statement also said she was fired shortly after the fax arrived for not doing well in negotiations with the Chinese. The deal in question was announced by Fortescue on November 5, 2004, as a binding contract under which MCC would provide financing, design and construction for Fortescue's Pilbara mine and beneficiation plant.

The miner later admitted, on March 31, 2005, the deals were in fact only "framework agreements". The talks between MCC and Fortescue hit a brick wall when the Chinese company demanded an 80 per cent stake in the miner but Mr Forrest was only prepared to offer 30 per cent.

 

[Warren Buffet II]

Wonder how he's going to get away with this?

Is it jail material? Or a slap on the wrist, and a fine? Banned as a company dirctor? Looks pretty ordinary.


Fortescue knew Chinese deal was dead, documents show
April 29, 2009
Article from: Australian Associated Press

FORTESCUE Metals Group knew a deal with a Chinese company had collapsed a month before a newspaper article forced the miner's admission, court documents show.

Documents released by the Federal Court in Perth show Fortescue received a fax from China Metallurgical Construction (Group) Corporation on February 3, 2005, advising that a deal with the iron ore miner was off.

But Fortescue did not announce to the stock exchange that its so-called "binding" deal with MCC had collapsed until a newspaper article on March 24, 2005, forced its hand.

In the documents released yesterday, former Fortescue executive assistant Wei Fisher said in a witness statement company chief executive Andrew "Twiggy" Forrest was "very upset" when he received a fax from MCC saying the deal was off. Her statement alleges she heard Mr Forrest say words to the effect: "This is ridiculous. If anyone tells the press, we've had it."

Her statement also said she was fired shortly after the fax arrived for not doing well in negotiations with the Chinese. The deal in question was announced by Fortescue on November 5, 2004, as a binding contract under which MCC would provide financing, design and construction for Fortescue's Pilbara mine and beneficiation plant.

The miner later admitted, on March 31, 2005, the deals were in fact only "framework agreements". The talks between MCC and Fortescue hit a brick wall when the Chinese company demanded an 80 per cent stake in the miner but Mr Forrest was only prepared to offer 30 per cent.

He misleaded the market in a big big way. And many people have notice that in the last few years with every company announcement they just keep talking and talking the company up, how much of that has been real?. I would be very afraid to trust from now on that kind of behaviour.

WBII

 

[shag]

that has to be fraud, in one way or the other.
and you would like to think he would get slammer time.
if they can show he benefited finacially from this, as he must have in one way or the other, they have to look to do something serious.
but u doubt it would happen here. too much money, assests and friends.
so you wounder what excuse they will use....charities....big fine.....too long ago...
it must have leaked out from either the china or aus end, and people make fortunes. its a big can of worms, u wonder why the opened it.
i'm no lawyer tho.

 

[vincent191]

That is what happens when you count your chickens before they are hatched. Twiggy tells you he has a "contract" with China and people start to read all sorts of things into one brief statement and push the share price up, whose fault is it? Can't put all the blame on Twiggy can you? Punters want to speculate, they will have to take the risk.

 

[prawn_86]

That is what happens when you count your chickens before they are hatched. Twiggy tells you he has a "contract" with China and people start to read all sorts of things into one brief statement and push the share price up, whose fault is it? Can't put all the blame on Twiggy can you? Punters want to speculate, they will have to take the risk.

You dont say you have a contract until you have a contract. You say you are in negotiations. The issue here appears to be the fact he didnt inform the market meaning he was trying to keep the price artificially inflated...

 

[Warren Buffet II]

Dud deals and dud CEO and now dud results.

I wonder how many post in this forum are about the now infamous 80 tonns per year? Now the guidance is 26 and falling!!. No wait, probably an announcement is coming with soon....

Never had a share in this company, never will, no connection in any form with them or know anyone with interest on them (apart from the guys in the forum buying dreams of 80 tons a year). I just hate this corporate cowboys.

WBII

 

[enigmatic]

Warren Buffet II - I was just wondering were it stated that they were going to have 80million tonnes a year and secondly were it stated this 26million tonnes a year.

I know recently I haven't been following FMG to thoroughly the last few months but i dont think both of those annoucements would of come out over the last few months. surely there contradicting views.

Any how It would be nice to see some actually facts.

 

[Warren Buffet II]

Warren Buffet II - I was just wondering were it stated that they were going to have 80million tonnes a year and secondly were it stated this 26million tonnes a year.

I know recently I haven't been following FMG to thoroughly the last few months but i dont think both of those annoucements would of come out over the last few months. surely there contradicting views.

Any how It would be nice to see some actually facts.

The 26 million for this year was announced yesterday, check on the www.asx.com.au website the "March Quarterly Production Report"".

And for the 80 million it has been their goal for a long long time and they say they were going to achieve that in 2009/2010, you can check their announcements too or this forum is full of that blant crap.

But as I said before, dud company, dud CEO, dud deals and dud announcements, maybe they change their minds about the 26 millions tomorrow!!

WBII

 

[enigmatic]

Not that it matter to much but i believe the targets were 55mtpa once Lump circuit was completed and up and running for a year 45mtpa once there Desand circuit had been completed for a year..

I yet to hear anything about lump but desands i believe was completed arround Feb.. so I assume they have some time to iron out the issues.

I have yet to see a company maybe its just me that says the plant will be capable of so many tonnes and in the first year they even come close to so called tonnes.

Although 26million is slightly dissappointing I have some confidence that they will atleast make 35million next year

The 80mtpa I'm not to sure about I actually thought it was 80mtpa more from Christmas Creek.. which was unfortunetly stopped due to finances. so that one is not in the cards for 2009 maybe its now 2010-2011.

Even so there share price is undervalued slightly no were near as may have been when expectations were blown out of proportions by the media and FMG

When ever buying into shares you should expect less then is promised especially in the mining industry. so many times things are over budget over scheduled heck the plant was initial expected to be up and running Sept 07 which turned out to be March 08 thats a few months difference.

 

[vincent191]

It all boils down to one thing.....if you buy in at the right price and made $$$ then he is a good guy. If you bought in at the wrong time and losted you bread then he is the biggest SOB in the world.

 

[SenTineL]

exactly right, FMG has been good to me.

WBII is a hater....yawn. Maybe because he's missed the boat on riding all the waves.

FMG has still put together a company that has been become a producer and is shipping ore. It has put in place millions of dollars of infrastructure in the Pilbara. You don't do that over night by being a 'cowboy'. During their boom they probably were very sensitive to media releases.

We'll see what happens but even I admit it's not looking good for the court case. Then again there's a lot of hearsay evidence.

 

[Front Runner]

On DJ after market... FMG possibly listing on shanghai exchange. No release on the ASX yet. Wish i knew ahead of time too!


0621 GMT [Dow Jones] Fortescue Metals (FMG.AU) shares surge as Chief Executive Andrew Forrest says the miner is considering listing on the Shanghai Stock Exchange. Forrest tells reporters in Changsha the company has been discussing the possible listing with the relevant regulator and will soon announce a bank as a listing advisor. FMG shares up 16% to A$3.07 in what looks like a speculative rally on the possibility that a Shanghai listing could help fund the iron ore miner's expansion plans. One analyst says the rally in the shares looks overdone and any China listing, if it eventuated, would likely be a long way off. (APW)

 

[jono1887]

I wish i knew about this listing!! I bought 2 weeks ago at 2.34 and sold today at 2.75 should've held them oh well... what can you do...

 

[kpas]

Some profit is better then no profit.

Be happy that you made money and didn't lose any.

Be interesting to see how this one opens tomorrow, it closed very strongly on the buzzer.

 

[nomore4s]

****Putting my Mods hat on for a moment****

This is a warning for everyone who posts in this thread. As this stock is starting to move up again and the market in general is somewhat bullish atm we are starting to get some mild ramping and low content posts - this will not be tolerated on ASF - so please think before you post.

I have already had to delete some posts on this thread tonight and as this thread has a bad history for ramping there will be no more warnings.

Thank you.

 

[choochoo35]

Chinese have asked Rio to take 45% cut from '08 IO benchmark price. Any guesses as to impact on FMG sp?

 

[Nesa]

not many replies as of late? what's going on.. just becuase the price is stagnant.

strong spike in volume today though.

 

[DVEOUS]

Stagnant?

I'm riding the wave.
Bought 10 days ago @ $2.51.
Peaked at $2.71 today, with a $2.67 close.
There's an uptrend (since early April) that blind Freddy can see.

 

[renim]

so what do you make of today's profit announcement. Is it real profit or is something else? and how does it compare to other ASX 20 companies?

 

[Miner]

FMG is looking for a perfect condition: High Ore price, No accident even if no care was taken on OSHE front, price realisation based on negotiation done by Rio and BHPB, perfect weather without any rain when every one looks for it

Then they will produce modest production with every opportunity to dodge the naive investor

Here u go with latest press

Disclaimer : Still holding FMG

Rains hit Fortescue's iron ore mining
June 1, 2009

Fortescue Metals Group shipped 20 million tonnes of iron ore to China in the first three quarters of the financial year after heavy rain affected mining, the company says.

Mined iron ore was impacted by heavy rains across the Pilbara, Fortescue says in a financial report on the nine months to March 31.

Patersons analyst Alex Passmore said Fortescue's 20 million tonnes of iron ore exports was below original estimates, but had been expected.

He said original estimates from the company varied between 45 million tonnes per annum (mtpa) and 80mtpa, with 55mtpa as a base case, depending on market conditions.

"It is 20 million so far this year, to the March quarter," Mr Passmore said.

"They are on track for 26 million for the 12 months, and they have said their target is about 35 for next year.

"Their last guidance was after the wet season which impacted on their rail and mine, so that has come down, but they did announce that in February," Mr Passmore said.

In the nine months to March 31, Fortescue had almost $US1.4 ($A1.74) billion in revenue, and a gross profit of about $US497 million ($A618.93 million).

Fortescue shares finished up five cents at $2.67 on Monday.