FMG - Fortescue Ltd

Value Collector · 22 January 2021

basilio said:
Twiggy Forest, Chairman of Fortescue Metals, has been redirecting his energy to producing green hydrogen on a vast scale with the final intention of of producing green steel and revolutionizing Australias energy and steel industry. Just spent 5 months touring the investment centres around the world to create the framework for this nation changing venture.

Twiggy also sees this as an essential part of dealing with CC in the very near future. He is producing the Boyer Lectures on the ABC this year with the theme being Rebooting Australia: How ethical entrepreneurs can help shape a better future,.

Powerful stuff. I will repost this in other relevant threads.

'The solution is hydrogen': Andrew Forrest lays out his plan to address climate change

Green hydrogen gives Australia an opportunity to slash our emissions — and if we get this right, the impact could be nothing short of nation-building, argues business leader Andrew Forrest.

www.abc.net.au

Great article, but I don't understand the need to try and push Elon down to try and lift hydrogen, if you care about the environment and want to push the world towards renewable electricity, why attack Elon?? Elon is correct in that for most of the car industry Battery EV's are better suited that hydrogen, Hydrogen will be niche in vehicles, but still have big applications in storage, industrial and agricultural fertilisers etc.

basilio · 22 January 2021

FMG highlighted the first Boyer lecture by Twiggy on an ASX announcement.

Also noted that the unaudited net profit after tax for FMG for the first 6 months of 2020/21 will be $4 to 4.1B. Huge result. Suggests perhaps double that for the full year.

jbocker · 22 January 2021

Value Collector said:
Great article, but I don't understand the need to try and push Elon down to try and lift hydrogen, if you care about the environment and want to push the world towards renewable electricity, why attack Elon?? Elon is correct in that for most of the car industry Battery EV's are better suited that hydrogen, Hydrogen will be niche in vehicles, but still have big applications in storage, industrial and agricultural fertilisers etc.

Agree, good article and maybe the 'push down' it is a ploy to grab attention and announce you are aiming to run in a green energy race.

Value Collector · 22 January 2021

basilio said:
FMG highlighted the first Boyer lecture by Twiggy on an ASX announcement.

Also noted that the unaudited net profit after tax for FMG for the first 6 months of 2020/21 will be $4 to 4.1B. Huge result. Suggests perhaps double that for the full year.

And $940 Million for the month of December alone, the mind boggles.

basilio · 25 January 2021

I was surprised that the market didn't respond well on Friday to the Twiggy Forrests Boyer presentation and in particular to the preliminary profit announcement announced through FMG.

Seems like enough people recognized the relevance over the weekend.

SP currently up almost 5% ! Very strong show.

joeno · 26 January 2021

A case can be made that FMG is overvalued if we take into consideration the % chance that Iron Ore prices crashes (because it's "cyclical").

But when you compare to other companies in the global market, it is still dead cheap. 10 PE? Are you serious? When the market is around 30. 20-30% annual growth. Good margins. Good management. Plans for expansion.

This is the last stock i'd sell in my portfolio atm. I really see FMG becoming a $200B AUD company easy. Even if there's a market crash some time in the future. After all what is a $200B AUD company these days when you have companies hitting the $1TRILLION USD market cap every other month.

over9k · 26 January 2021

Yeah, if the banks would give me any money, I would have already bought a ton of dividend stocks with it.

dat111 · 28 January 2021

Why the 6.4% drop in FMG...7.87% drop in FSUMF(US FMG) ? I understand that the price of iron ore dropped 2.4% but the quarterly production report is tomorrow and I would expect a good to great report. I also understand that China usually head fakes all of us (basketball reference)... Is it time to buy again?

Value Collector · 28 January 2021

dat111 said:
Why the 6.4% drop in FMG...7.87% drop in FSUMF(US FMG) ? I understand that the price of iron ore dropped 2.4% but the quarterly production report is tomorrow and I would expect a good to great report. I also understand that China usually head fakes all of us (basketball reference)... Is it time to buy again?

I don't know what caused the drop, it could be a combination of jitters around Andrew announcing his push into energy and hydrogen making people nervous about whether it might turn into a money pit, and also jitters around the Iron ore price, not to mention we did have a decent run up on the prior trading day so it could have just been some of that coming back.

One constant with markets is that they will fluctuate, these sorts of swings are always bound to happen, FMG tends to attract alot of speculators and short sellers who add to volatility.

joeno · 28 January 2021

Unfortunately investing in Australia hasn't caught up with the rest of the world. Which is why you see excellent performers like FMG not realising their full stock value potential (let alone being inflated like a lot of US stocks).

There's a lack of investing culture due to poor performance of the ASX in the last 10 years. People are also contrarian and usually pessimistic and overly frugal. I mean people were complaining when prices were $2.

Unlike the US and Europe where it's so easy to find a fee-free broker, the only decent option we have is IB which requires considerable investment and has commissions. Commsec and other brokers are leeches with their crap brokerage rates. This makes it hard for youths to invest their $100s/1000s for the future.

If FMG was listed in the US and "US owned" we'd easily be 3-4x our current market cap. A mining company with the growth, balance sheet, and income stream that FMG has is unheard of.

over9k · 28 January 2021

Twiggy's fault for not listing in the 'states.

RIO & BHP can be bought with ADR's.

dat111 · 29 January 2021

over9k said:
Twiggy's fault for not listing in the 'states.

RIO & BHP can be bought with ADR's.

There are two ways to buy in the US. I have bought both ways. The first way is via FSUMF... I am charged a trading fee for purchasing these shares...

The second is FSUGY...there are no fees associated with trading this stock in the states... it is 2 shares of FMG for each share of FSUGY...

It has only been a couple of years that I have received free trades...

joeno · 29 January 2021

Typical large cap US miner:
NYSE: FCX Freeport-McMoran

60 PE this year
Sometimes makes a profit (inconsistent). Sometimes makes a loss.
Lousy 0.7% dividend
Negative revenue growth last 3 years
Negative cash flow last 2 years
Mediocre Debt:Equity (1.1)

But it's American so all the fat hedge funds and pension funds pile in. FMG is treated like it's going to go bust in the next 5-10 years.

If *some people* presented the pros of owning a stock like FMG on Reddit like what happened with $VALE we'd definitely some good good price action upwards. But i'm not saying anybody should cause it's a cop-out and makes this stock seem like it's a pump-and-dump.

Value Collector · 29 January 2021

joeno said:
Unfortunately investing in Australia hasn't caught up with the rest of the world. Which is why you see excellent performers like FMG not realising their full stock value potential (let alone being inflated like a lot of US stocks).

There's a lack of investing culture due to poor performance of the ASX in the last 10 years. People are also contrarian and usually pessimistic and overly frugal. I mean people were complaining when prices were $2.

Unlike the US and Europe where it's so easy to find a fee-free broker, the only decent option we have is IB which requires considerable investment and has commissions. Commsec and other brokers are leeches with their crap brokerage rates. This makes it hard for youths to invest their $100s/1000s for the future.

If FMG was listed in the US and "US owned" we'd easily be 3-4x our current market cap. A mining company with the growth, balance sheet, and income stream that FMG has is unheard of.

Just remember “Fee free” Brokers can end up being pretty expensive, they should really be called “hidden fee” brokers.

joeno · 29 January 2021

Value Collector said:
Just remember “Fee free” Brokers can end up being pretty expensive, they should really be called “hidden fee” brokers.

Robinhood is free commissions for all stock trades and options trades iir. It's just the service can suck sometimes and there's limitations to what you can buy. I don't/can't use it though.

I'm using Trading212 since i moved here in the UK. It's also fee free and you get to use it as an ISA investment account (basically up to £20k a year to invest completely tax-free). $0 trades and tax-free when i sell. I hear it's not as good as Robinhood as there's not that much variety of stocks, but still it's ahead of what Aus has.

I think they can be expensive if you're an atypical investor with more than a few million and buy exotic instruments like CFDs. But for regular folks they should be fine.

Value Collector · 29 January 2021

joeno said:
Robinhood is free commissions for all stock trades and options trades iir. It's just the service can suck sometimes and there's limitations to what you can buy. I don't/can't use it though.

I'm using Trading212 since i moved here in the UK. It's also fee free and you get to use it as an ISA investment account (basically up to £20k a year to invest completely tax-free). $0 trades and tax-free when i sell. I hear it's not as good as Robinhood as there's not that much variety of stocks, but still it's ahead of what Aus has.

I think they can be expensive if you're an atypical investor with more than a few million and buy exotic instruments like CFDs. But for regular folks they should be fine.

Robin Hood make money on the back end, so in theory they are offering customers slightly worse buy and sell prices that they would get if they bought and sold through a regular broker, but I guess it depends how much stock you are purchasing whether this works out cheaper or more expensive.

its a bit like banks offer travel money cards that don’t have fees, however they make money by giving you an exchange rate that is 3% - 5% worse than other options, that’s why I say these things are hidden fees not zero fees.

joeno · 29 January 2021

Value Collector said:
Robin Hood make money on the back end, so in theory they are offering customers slightly worse buy and sell prices that they would get if they bought and sold through a regular broker, but I guess it depends how much stock you are purchasing whether this works out cheaper or more expensive.

its a bit like banks offer travel money cards that don’t have fees, however they make money by giving you an exchange rate that is 3% - 5% worse than other options, that’s why I say these things are hidden fees not zero fees.

Perhaps you're right. I did get the lowest price for a limit order one time though on Trading212 - as verified by google. IB is definitely legit and won't play with bid asks.

On the topic of FMG again - i'm speechless the market punished FMG due to this article:

'The solution is hydrogen': Andrew Forrest lays out his plan to address climate change

Green hydrogen gives Australia an opportunity to slash our emissions — and if we get this right, the impact could be nothing short of nation-building, argues business leader Andrew Forrest.

www.abc.net.au

- Committing to be green when green energy, renewables, and environmental friendliness is becoming a mandate. Wouldn't be surprised if there's tax credits for being green in the future. And fines for messing around with CO2 emissions.

- Hydrogen energy is growing. AF wants to get into Hydrogen. That's amazing. It's called diversified business model. Like Facebook not having just facebook but also instagram and whatsapp as backup bread-winners (that could eventually be their main bread winner). Or Apple diversifying into phones from computers. Amazon diversifying from selling books to cloud services..

- It looks like he has the interest of society and the environment before profits. Who does that sound like? Elon Musk in the early 2010s talking about how he wasn't aiming to be the biggest car maker but to usher in a new era and enable others to follow his lead. Eventually the market rewards good morals, innovation, and willingness to adapt/listen.

Take the GME fiasco right now: the hedge funds are getting blasted from all corners because
- They lied
- They manipulated the markets
- They don't care about "the people" or society. They just care about making a dirty buck
- Not willing to adapt/listen. Didn't close their shorts even after at risk of a short squeeze of a lifetime

sptrawler · 29 January 2021

IMO there will be two types of hydrogen, one that is derived through electrolysis from renewables and the other that is derived from using human waste derived gas, to produce hydrogen.
At the moment, we are very much focused on the first, but the second is just as important IMO, the first has center stage but the second increases every day as we eat more and the population grows.

Value Collector · 31 January 2021

sptrawler said:
IMO there will be two types of hydrogen, one that is derived through electrolysis from renewables and the other that is derived from using human waste derived gas, to produce hydrogen.
At the moment, we are very much focused on the first, but the second is just as important IMO, the first has center stage but the second increases every day as we eat more and the population grows.

Almost all human waste goes to land fill, and a lot of landfills capture the methane they generate and make electricity, so we are already using some of the methane produced by our sewage.

SirRumpole · 31 January 2021

Value Collector said:
Almost all human waste goes to land fill, and a lot of landfills capture the methane they generate and make electricity, so we are already using some of the methane produced by our sewage.

Where do batteries go when they die ?

FMG - Fortescue Ltd

Value Collector

Have courage, and be kind.

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Have courage, and be kind.

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