FMG - Fortescue Ltd

[Austwide]

Melbourne's sewerage plant uses the methane generated to run large V18's to pump away the treated sewer to Bass Straight and as fuel to to generate electricity for their own use. I worked there in the 70's and were doing that then but were limited to 50% power generation as the supply authority wanted to sell some power to cover infrastructure costs. I would assume the 50% limit has now been removed.

 

[qldfrog]

Where do batteries go when they die ?

Leaching toxic rare earth in a slum in India Bangladesh or Africa
So green, reducing both co2 and world population

 

[Value Collector]

Where do batteries go when they die ?

They will be recycled and made into new batteries.

 

[Value Collector]

Melbourne's sewerage plant uses the methane generated to run large V18's to pump away the treated sewer to Bass Straight and as fuel to to generate electricity for their own use. I worked there in the 70's and were doing that then but were limited to 50% power generation as the supply authority wanted to sell some power to cover infrastructure costs. I would assume the 50% limit has now been removed.

Yep, but only clean clear water is pumped into the ocean, all the rest of the matter is filtered out, compressed and then buried in land fill, where it continues to break down releasing methane and possibly powering more power plants via landfill gas generators.

 

[Austwide]

Yep, but only clean clear water is pumped into the ocean, all the rest of the matter is filtered out, compressed and then buried in land fill, where it continues to break down releasing methane and possibly powering more power plants via landfill gas generators.

Yes the treated sewerage water is "Drinkable" when it leaves the plant. Some new housing estates have the treated water supplied to all houses for use in toilets and the garden, charged half the regular water price for it.

 

[Value Collector]

Yes the treated sewerage water is "Drinkable" when it leaves the plant. Some new housing estates have the treated water supplied to all houses for use in toilets and the garden, charged half the regular water price for it.

In south east Queensland, when the water system gets below 50% storage the treated water passes through an additional treatment and then is put back into our two biggest dams and eventually makes its way back through the system.

When there is no drought it gets used to water sports fields and council land.

 

[basilio]

Update from Share Cafe on Iron Ore prices. Let's enjoy the current returns while we can and look forward to significant changes in FMG activities in response to Chinas direction.
Some significant observations

• Current Iron Ore prices falling because of reduced China demand
• New China policy in place to ensure a long term reduction in steel demand as part of low carbon initiatives
• The new policy will reduce demand for lower quality iron ore, 58% fines (mostly Australian source)
• And yes China is intending to reduce its dependence on Australian iron ore.

Poor Start to Feb for Iron Ore - ShareCafe

Contrary to historical trends, Iron ore prices are down sharply in February ahead of the Lunar New Year Festival starting February 11.

www.sharecafe.com.au

 

[basilio]

Very significant Change of Management announcement from FMG.
COO Greg Lilleyman has resigned effective immediately as have Don Hyma, Director Projects and Manie McDonald, Director Iron Bridge

Something has gone seriously wrong but there seems to be no further information. Appears as if there are big problems with the Iron Bridge project.

SP has responded accordingly.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02341908-6A1020523?access_token=83ff96335c2d45a094df02a206a39ff4

 

[Beaches]

FMG is currently down over 6% after the announcement
Is this a great buying opportunity prior to the release of the results on Thursday?
Or will the update reveal bigger problems and the current drop today be just the start?


From the announcement:
"The detailed review underway for the Iron Bridge Magnetite project is continuing and an update is expected to be provided with the release of Fortescue’s half year financial results on 18 February 2021 "

Where are all our resident bottom pickers?

 

[Ferret]

Sounds bad. I'm taking some profits.

 

[basilio]

FMG is currently down over 6% after the announcement
Is this a great buying opportunity prior to the release of the results on Thursday?
Or will the update reveal bigger problems and the current drop today be just the start?


From the announcement:
"The detailed review underway for the Iron Bridge Magnetite project is continuing and an update is expected to be provided with the release of Fortescue’s half year financial results on 18 February 2021 "

Where are all our resident bottom pickers?

Who knows? There will be an excellent financial result from the previous 6 months. However it's clear something has gone seriously wrong at Iron Bridge, How much impact will it have overall ? My guess is that the development of the site is not going properly and there will be ramifications for the amount and quality of ore being shifted .

 

[Dark1975]

Sounds bad. I'm taking some profits.

Not bad at all, profits is good ?
I jumped in on the oversold value and was out in 5mins, pitty I missed the buy as it went under $23.00 for 2mins ( my little girl switched off my net ?)

 

[Ferret]

COO, Director of Projects, Director of Iron Bridge - all resigned with immediate effect.
Sounds to me like something has gone badly wrong with Iron Bridge.

I'll see what further details come out on 18th. I'm happy to buy back in if all is well.

 

[Value Collector]

Who knows? There will be an excellent financial result from the previous 6 months. However it's clear something has gone seriously wrong at Iron Bridge, How much impact will it have overall ? My guess is that the development of the site is not going properly and there will be ramifications for the amount and quality of ore being shifted .

I guess we will just have to wait and see what is announced on Thursday, If its just a cost blow out at Iron Bridge of $1 Billion or so, thats only 1 months operating earnings at the moment so no big deal really.

Worst case scenario is a major set back at Iron bridge involving failed technology etc that was covered up until now, because the process involved there is a lot more complex than their other 5 mines.

Saying that though, we have 5 mines that firing on all cylinders, so I can't see the Iron bridge Joint Venture affecting us to badly even if they entire thing had to be written off, however hopefully its just some hidden cost blow out and we will still get the project up and running in the next 2 years or so.

But, in the mean time the market will do what markets do and freak out, and the rumour mill will run wild.

I neither bought nor sold on the news, I am happy to wait and see what is announced.

 

[basilio]

The issues seem to be about cost blowouts on the Iron Ridge development and, perhaps, significant operational problems.
The overarching issue is that the Iron Ridge mine was intended to produce high quality fines that when mixed with other lower quality ore would raise the fines standard sufficiently to command a premium price. If it doesn't come on line that objective is stalled.

It seems from the article below that magnetite mines are very tricky beasts to develop.

Fortescue COO, executives step down amid Iron Bridge review

Australia's Fortescue Metals Group Ltd said on Tuesday Chief Operating Officer Greg Lilleyman and two other executives have resigned as part of a review of its Iron Bridge Magnetite project in Western Australia.

www.reuters.com

 

[Value Collector]

The issues seem to be about cost blowouts on the Iron Ridge development and, perhaps, significant operational problems.
The overarching issue is that the Iron Ridge mine was intended to produce high quality fines that when mixed with other lower quality ore would raise the fines standard sufficiently to command a premium price. If it doesn't come on line that objective is stalled.

It seems from the article below that magnetite mines are very tricky beasts to develop.

Fortescue COO, executives step down amid Iron Bridge review

Australia's Fortescue Metals Group Ltd said on Tuesday Chief Operating Officer Greg Lilleyman and two other executives have resigned as part of a review of its Iron Bridge Magnetite project in Western Australia.

www.reuters.com

No, the Iron Bridge ore was not going to be used in blending, that is the eliwana mine.

The Iron Bridge mine produces low quality magnitite ore, which is crushed made into a slurry, then piped to a processing plant where it is processed and upgraded into a high quality concentrate, the concentrate is then compressed and heated to form high grade pellets.

this is a technical process that many companies have struggled with, but some have made profitable businesses on.

I will link a video later describing the process.

 

[Value Collector]

No, the Iron Bridge ore was not going to be used in blending, that is the eliwana mine.

The Iron Bridge mine produces low quality magnitite ore, which is crushed made into a slurry, then piped to a processing plant where it is processed and upgraded into a high quality concentrate, the concentrate is then compressed and heated to form high grade pellets.

this is a technical process that many companies have struggled with, but some have made profitable businesses on.

I will link a video later describing the process.

check out this video from the 3.30 mark, it’s shows how a magnitite mine and processing works.

These mines in the USA ran out of high grade ore decades ago but have been able to continue producing high grade ore by processing taconite rocks and removing the magnitite ore.

 

[basilio]

Can't remember exactly where I read it but I believed that a significant element of ensuring continued Chinese purchase of Australian Iron Ore was providing a premium product. In that context my memory was that the high grade fines from Iron Bark could be used to improve the lower quality grades.

Having said that checking out articles on the net throws up some quite contradictory stories. Certainly not worth dying in ditch for.

ANALYSIS: The complicated growth of the 58% Fe iron ore market - Fastmarkets

The seaborne spot iron ore market has long considered 62% Fe material its benchmark product, after a shift away from annual price negotiations in 2008.

www.metalbulletin.com

 

[Value Collector]

Can't remember exactly where I read it but I believed that a significant element of ensuring continued Chinese purchase of Australian Iron Ore was providing a premium product. In that context my memory was that the high grade fines from Iron Bark could be used to improve the lower quality grades.

Having said that checking out articles on the net throws up some quite contradictory stories. Certainly not worth dying in ditch for.

ANALYSIS: The complicated growth of the 58% Fe iron ore market - Fastmarkets

The seaborne spot iron ore market has long considered 62% Fe material its benchmark product, after a shift away from annual price negotiations in 2008.

www.metalbulletin.com

View attachment 120170

Yeah, as I said it’s the eliwana mines output that is going to be used to upgrade the lower quality ores from other mines, but the Iron Bridge ore is going to be a stand alone super high quality product sold at a large premium.

the input ore is low grade 30% but after it’s been processed it will be 65%

 

[Jackass]

Does anybody else think that this is p*ss poor form from Fortescue in terms of continuous disclosure? This story was all over various media outlets for a full 24 hrs before they informed the ASX. Also have heard speculation that the story was confirmed form sources within Fortescue itself, which if it is true is not a good look, talking to the media before making an announcement to market. And how was it not market sensitive?