FMG - Fortescue Ltd

[basilio]

Shouldn't Twiggy just stick to digging up iron?

Is he going/gone woke?

How much of FMG's profits are going into changing the weather?

Or perhaps because Twiggy is well aware that renewable energy is the new industry baseline ? Why because -

1) It is cheaper in both development and running costs than fossil fuels
2) It is far cleaner in terms of emissions
3) And FMH is fast tracking development of these new industries as profit centres against the day China is able to source it's iron ore needs from another country.

And yes Twiggy absolutely lines up with all the world climate scientists on the urgency of decarbonisaing the world economy ASAP if we are to have any hope of a future beyond the next 30 years.

Have to say I'm surprised at the dig about being "woke" or trying to change the weather.

I honestly thought even the most confirmed historical CC deniers had been quietly reassessing their views as the relentless effects of global warming were becoming impossible to ignore .

 

[Sean K]

I honestly thought even the most confirmed historical CC deniers had been quietly reassessing their views as the relentless effects of global warming were becoming impossible to ignore .

I'm on the Galileo side of that argument. I'll leave that outside of my comments on stocks from now on.

 

[basilio]

Even leaving CC considerations aside the economic rationale behind Twiggy focus on developing renewable energy is compelling.

As a huge energy user himself dropping these costs off his balance sheet goes straight to the bottom line profits and reduces his costs of production on an ongoing basis. At the same time he is well aware that China is not going to tolerate being under the economic thumb of Australian iron ore miners. So diversifying into a new world wide industry is just astute business sense against the day he can't sell multi millions of tons of iron ore for $200 + a ton.

And Galileo as a prop against the evidence of global warming ?

 

[bux2000]

I'm on the Galileo side of that argument. I'll leave that outside of my comments on stocks from now on.

This is probably not the time nor the place but all I will say

The Myth That the Polar Bear Population Is Declining

Data from conservation groups and the government show that the polar bear population is roughly five times what it was in the 1950s and three or four times what it was in the 1970s when polar bears became protected under international treaty.

fee.org

And wait to feel the wind in my face ?️ ?



All the best
bux

 

[sptrawler]

Even leaving CC considerations aside the economic rationale behind Twiggy focus on developing renewable energy is compelling.

As a huge energy user himself dropping these costs off his balance sheet goes straight to the bottom line profits and reduces his costs of production on an ongoing basis. At the same time he is well aware that China is not going to tolerate being under the economic thumb of Australian iron ore miners. So diversifying into a new world wide industry is just astute business sense against the day he can't sell multi millions of tons of iron ore for $200 + a ton.

Isn't the dam that is mentioned, near the area the Chinese want mine the iron ore and where the Australian resource company had its lease revoked?

 

[Value Collector]

Shouldn't Twiggy just stick to digging up iron?

Is he going/gone woke?

How much of FMG's profits are going into changing the weather?

View attachment 126064

Fmg is putting 10% of their profits into their Fortescue future industries division, 10% into mining, and 80% as dividends.

There is ship loads of iron ore in the Congo, not to mention copper, but you need energy (and a relationship) to mine.

the Congo is also very centrally located in an energy starved continent, I have spent the past 24 hours learning about the various options to expand the Congo’s electricity exports, it seems like a good opportunity to me.

 

[Ferret]

Shouldn't Twiggy just stick to digging up iron?

I've mentioned before my concerns about FMG moving away from what they do well.

Add to this all the sovereign risk of a project in Congo and Australian companies' track records in Africa and it's got alarm bells ringing for me.

I hope Twiggy knows what he's doing...

 

[Value Collector]

Check out this video that talks a bit about the exact project FMG are looking at, the video is 6 years old but it is the project, it shows how the industry is hamstrung by lack of energy.

 

[bux2000]

I hope Twiggy knows what he's doing...

I have been following the Andrew Forrest Story since FMG was formed. I have recounted his story to many people and found it an inspiration for myself over the years. He has been underestimated so many times and if some recent valuations of FMG are concerned, still is.
I am not sure if this video has been quoted before and it is the best part of an hour...... but it is a great story.




bux

 

[bux2000]

Apologies for my Technical inability you may have to reset the video above to 0.00 manually to get its full impact.

All the best
bux

 

[Value Collector]

Apologies for my Technical inability you may have to reset the video above to 0.00 manually to get its full impact.

All the best
bux

If you delete your YouTube history it prevents videos doing that.

 

[basilio]

This is probably not the time nor the place but all I will say

The Myth That the Polar Bear Population Is Declining

Data from conservation groups and the government show that the polar bear population is roughly five times what it was in the 1950s and three or four times what it was in the 1970s when polar bears became protected under international treaty.

fee.org

And wait to feel the wind in my face ?️ ?



All the best
bux

Interesting.. Is that just a very cautious, subtle way of perhaps suggesting that actually CC is not real or serious ? Sort of tip toeing around it ?
Frankly one can find plenty of other evidence that polars bears are being affected by rapidly melting polar ice and if they aren't going to fall off the perch tomorrow another 30 years of disappearing ice caps will nail the coffin shut. By that stage we will have far more important things to worry about than lovable ol' polar bears..

But after checking out the rest of the fee.org website the fate of polar bears is small potatoes.

 

[basilio]

But back to the topic - FMG and its development of renewable energy projects.

CSIRO and partners are launching a mission to make hydrogen production commercially viable. One of the partners is... FMG

Enabling science and technology through investment in breakthrough science, including a $20m partnership with Fortescue which focuses on the development and commercialisation of new hydrogen technologies.

Fuelling a clean and bright future: CSIRO and partners launch $68M Hydrogen Industry Mission - CSIRO

www.csiro.au

 

[bux2000]

Interesting.. Is that just a very cautious, subtle way of perhaps suggesting that actually CC is not real or serious ? Sort of tip toeing around it ?

How very perceptive of you .

I must admit the blast of air straight off the Polar Cap was not as cold as I thought it might be ?.

I am a boomer so apparently I am the one that solo handedly fudged the Planet and enjoyed my life so much that the world has spun off its axis I will not tell you my skin colour or I will really have to apologise .......... ooops gave that away ?‍

What then is it connected to.

Perhaps it’s a case of selective connection
When it suits the pundits.

I’ve noticed that it doesn’t matter how you view anything in life
There will always be those who think at 180 degrees to you.
Your opinion is only valid to those in your 180 degrees!

I Hope @tech/a does not mind me quoting his post

From my 180 degrees and a life starting without a University education and leaving school without a huge friendship of academia, and living in a world being dominated by the scourge of Funding which again appears to turn honest people into dishonest people.

Just saying ......probably really offended you now ??

bux

 

[Value Collector]

Just saying ......probably really offended you now ??

bux

I think you are the one that’s offended by something. I am unsure what that rant has to do with anything.

 

[bux2000]

think you are the one that’s offended by something. I am unsure what that rant has to do with anything.

Yes well a good example of a post written when tired and grumpy with the world for which I apologise.

I will go back to watching the 6 o'clock news and be happy

bux

 

[qldfrog]

Yes well a good example of a post written when tired and grumpy with the world for which I apologise.

I will go back to watching the 6 o'clock news and be happy

bux

watching the 6 o'clock brainwash is a sure thing to make me unhappy :-( , luckily, here on the sunshine coast, there is the local weather and surf report ;-)
We can all get cranky, thanks for posting

 

[basilio]

Don't know if FMG managed to load a few more ships last month but the overall exports of iron ore to China jumped to record levels in May. And the May price averaged $200- 210 plus a ton.

Australia’s iron ore exports to China have risen by 20 per cent, stunning new figures show

It should have been a month that signalled the start of a new era in China’s great escape from Australian exports, but stunning new figures show Beijing is going to have to wait a whole lot longer.

www.news.com.au

 

[Gunnerguy]

Hi all,

With the impending, hopefully, good quarterly results in July for FMG, I am considering placing a Bull Put Credit Spread for FMG. The price has risen nicely in the last couple of days.

The details are.

15 July, 22.5/22.0 Bull Put, 10 contracts. Credit of $68. Max possible loss of -$432, if FMG price goes below $22.0 before 15 July.

I believe it’s unlikely FMG will go below $22.0 before 15 July. If it does I will buy FMG Long.

Not looking for Financial Advice (as no one can provide it here) but would appreciate any comments, suggestions.

Regards

Gunnerguy.

(Amateur options trading learner).

 

[Sharkman]

IMHO that is a horrible risk:reward ratio, risking 432 to make 68. unlikely doesn't mean never, plus those 22 puts are actually close to 30 delta, so it's not even all that unlikely in terms of how the market is currently pricing it.

on checking the market however, if you're only taking in 68 you are crossing way too much of the spread - in fact it looks like you're crossing all of it. when i looked a few mins ago, the 22s were showing 0.31/0.405, the 22.50s were showing 0.48/0.58.

the mid on the spread is around 0.17 which would make it a risk 332 to make 168 scenario, seems a fairly reasonable proposition on a vertical credit spread. if i was looking to execute this trade i'd start by sticking in a combo at say 0.20. you never know, occasionally you get lucky and one of the MMs is looking to square up their delta in the opposite direction to you, so you can get filled on your side of the spread every now and then. if you don't get filled at 0.20 (likely), then a few secs later drop it to 0.195, then 0.19, 0.185 etc.

if i got down to 0.16 (2 ticks their side of the spread - my general rule of thumb) without being filled, i'd probably take the order off at that point unless i really badly wanted the position. gotta draw the line somewhere, you can't keep crossing spreads otherwise it will put a huge dent in your portfolio once you're doing hundreds of these a year. there is no way i'd do this at 0.07 (crossing the whole spread on both legs), it's just giving money to the MMs.

that's just how i would go about it though, it's not the "correct" way by any means, there isn't one. everyone has their own individual preferences, i'm sure you'll form your own (which may well differ from mine) once you've done a few trades.