FMG - Fortescue Ltd

[DannyB0000]

Reading an autobiography on Warren Buffett, his book suggests investors who get to emotional about stocks and their performance end up losing money. I think FMG is a Hold at the moment, it’s definently on my watch list now. The share price has fallen off a cliff and I would wait until the selling stops before buying into it, wait until the share price starts to stabilise first.

 

[divs4ever]

i don't consider mine rushed , but opportunistic , i work on what i consider a fair price ( some companies i would not buy at any price )

but i DO buy affordable parcels , so i can buy multiple parcels should i wish to ( even on the same day )

i am NOT one to 'back up the truck ' ( well not since the middle of 2011 )

but interesting to see the beat-down of FMG , considering the company is more ESG-friendly than most miners

 

[basilio]

have an order in for $15 ( which i MIGHT move lower next week ) after buying some yesterday @ $17.60

and on order in for more MGX @ 44c

remember i believe the recent commodity highs ( except PMs ) have been out of cycle and the real demand boom is still a few years away

That would be a bargain (I think..) ( I clearly didn't get it right. Topped up way to early... )

I'm wondering if the sharp drop today is triggering a series of stop losses ?

I 'm sure if the iron ore price stabilises at $90-100 FMG will still be a very tidy earner.

 

[waterbottle]

Down 10% today alone. Wow.... What's going on in China?

 

[tech/a]

 

[divs4ever]

maybe this

WHY THE EVERGRANDE COLLAPSE MATTERS...BY LYNETTE ZANG



although i would argue we ( the world in general ) have been in serious debt madness since the middle of 2018 , and that is why i had almost completely fled debt securities ( bonds, hybrids, notes ) , this has been just a long time coming

 

[divs4ever]

Nuclear Subs, Evergrande, and the Iron Ore Conundrum​

Nuclear Subs, Evergrande, and the Iron Ore Conundrum

It’d be very contrarian to take trades on iron ore at this stage, and the coast might not be clear until some support comes in on the iron ore spot price.

www.moneymorning.com.au

DYOR

 

[basilio]

The Evergrande collapse is very big. Is this part of the reason for the current collapse ? I could see that.

Frankly if it does turn out to be a contagious financial disaster the there are plenty of other dominos on the table as well.

 

[tech/a]

The Evergrande collapse is very big. Is this part of the reason for the current collapse ? I could see that.

Frankly if it does turn out to be a contagious financial disaster the there are plenty of other dominos on the table as well.

Have a read and never concern yourself about a sovereign debt ever again

Also on audible.

 

[frugal.rock]

I've never bought any FMG...
But just did !
$15.33

Does everyone know that Twiggy put tenement applications in for an absolutely staggering amount of ground all around that other company that has great hydrogen prospects...?

Csnt remember the name of it now, but someone's posted a snapshot of it in the stock thread.

Dagnamit, what's that stock?
Possibly Gascoyne area? WA

Edit, Province Resources
ASC ticker PRL... huge ground.

I don't think it's been announced yet by FMG ?
Or has it?

 

[frugal.rock]

From PRL thread.
There's more posts about it that thread.
A massive hydrogen hub!
That's a staggering amount of ground... I'm sure FMG know what there doing here...

 

[divs4ever]

describe 'contagious '

while the building industry will certainly be rattled , think of all those extra people wary of buying 'off-the-plan ' , contractors who don't get paid in full ( not to mention insurance premiums hiked )

what about the corporate bond market ( including all those 'sausage-debt ' EFTs ) , what about the derivative market , as sure as apples someone will have credit-default swaps on this debt

we will probably never know the true outstanding debt of Evergrande , let alone who discreetly lost money on this

 

[basilio]

From PRL thread.
There's more posts about it that thread.
A massive hydrogen hub!
That's a staggering amount of ground... I'm sure FMG know what there doing here...

View attachment 130389

Very interesting. We know that FFI (Fortesque Future Industries ) is the vehicle for FMG's move to mass renewable energy. This all about Green Hydrogen. Don't be surprised in FFI becomes a partner with PRL - or takes it over.

Found some further background information.

Australia’s Richest Man Grabs Outrageous Amount of Land Surrounding PRL

In the last few days Andrew "Twiggy" Forrest's FMG Resources has put in applications on all of the land surrounding Province Resources (ASX:PRL) proposed green hydrogen project in the Shire of Carnarvon

www.nextsmallcap.com

 

[sptrawler]

FMG has finally hit my watch list, now becomes a case of watching falling knives.

 

[basilio]

FFI website.

Interestingly I couldn't find any mention of the land applications around PRL's project.

News | Fortescue Future Industries

'I can assure you there is enough renewable energy to economically supply mankind, from this time forth.' - Dr Andrew Forest AO

ffi.com.au

 

[basilio]

Perhaps this is part of the reason why the bottom has fallen out of FMG.

It seems some senior executives have decided to jump.

Mass exodus: Twiggy’s FMG scrambles to fill top jobs

Andrew Forrest’s Fortescue Metals Group is scrambling to fill key management positions after a mass exodus of senior staff in recent weeks.

thewest.com.au

https://thewest.com.au/business/min...nt-positions-after-mass-exodus-ng-b882006903z
Andrew ‘Twiggy’ Forrest’s Fortescue Metals Group scrambles to fill key management positions after mass exodus

Stuart McKinnonThe West Australian
Thu, 16 September 2021 2:00PM
Stuart McKinnon

Fortescue Metals chairman Andrew Forrest, with CEO Elizabeth Gaines, right, and deputy CEO Julie Shuttleworth.Credit: Nic Ellis/The West Australian

Andrew Forrest’s Fortescue Metals Group is scrambling to fill a raft of key management positions after a mass exodus of senior staff.

The iron ore giant’s chief executive Elizabeth Gaines revealed in an internal memo obtained by The West Australian that Pilbara operations director Fernando Pereira had resigned to pursue other opportunities.

His departure follows the recent resignation of health and safety director Rob Watson after 10 years.
Ms Gaines — in a statement after The West contacted the company about the departures — thanked both men for their “outstanding contributions to Fortescue”.
“They leave with our best wishes for the future, and the search process for replacement of their roles is progressing,” she said.

The two high-profile exits follow last month’s resignation of Tim Langmead, Fortescue’s community, environment and government director.

The company also had three key staff depart in February — chief operating officer Greg Lilleyman as well as project directors Don Hyma and Manie McDonald — following a $US400 million ($516 million) cost blowout on its Iron Bridge magnetite project.

The resignations of Mr Pereira and Mr Watson come after Fortescue last month unveiled a 117 per cent jump in annual profit to a record $US10.3 billion.


Fortescue Metals Group CEO Elizabeth Gaines. Credit: Jackson Flindell/The West Australian

The stunning results included a record $2.11-a-share final dividend, which will deliver the company’s billionaire founder and chairman Mr Forrest a payout of $2.35 billion later this month.

Having posted the windfall profit, Fortescue’s board intervened to ensure senior executives didn’t bank “excessive” bonuses because of the iron ore miner’s recent share price surge.

The company disclosed in its annual report last month it had capped share rewards flowing from a 2019 executive bonus scheme to balance “rewarding management effort and the tailwinds driving up iron ore prices”.

The performance-linked scheme would have allowed about 30 eligible executives pocket millions of dollars in profit on the vesting of shares that were issued at just $4.35 in 2019 but were worth more than $23 when the bonus plan matured at the end of the financial year.
Instead, just 28 per cent of the shares will vest with the executives after Fortescue capped the scheme by ruling they could benefit from only half of the price rise to prevent them receiving “a windfall gain as a result of unprecedented growth in Fortescue’s share price”.

Sources told The West Australian yesterday the board’s decision had embittered some mid-level executives, who had been expecting to be rewarded more handsomely after the record year.

The head of the company’s remuneration committee, Jen Morris, said in the annual report the board was “cognisant of the company and shareholder views on executive pay and the circumstances where executives may benefit from windfall gains in vesting”.

“The intent of the long-term incentive plan is to ensure no windfall gains or undue penalty,” she said.
“In reviewing these exceptional outcomes under the financial year LTIP, the board determined that strong share price growth has been driven, in part, by strong iron ore prices which are outside the control of management.”

 

[over9k]

Australian sharemarket sinks into the red as iron ore miners tumble on commodity price collapse​

ASX in the red as iron ore miners tumble on commodity price collapse

The Australian sharemarket was dragged down by the ongoing iron ore price plunge weighing heavily on miners, while a tech firm sank after being left at the altar.

www.news.com.au

And people laughed at me for pointing out how close to the edge china was:

I'm not, but:

An AUD tank is a major factor in competitiveness.

My thoughts exactly.

The company itself is great, it's the actual sector/industry itself that I'm worried about.

Points 2 & 3 are the relevant ones here.

Totally hearing you about the renewable energy stuff - with that in mind, one has to wonder why he's actually doing it? If the iron ore business was going to continue to be so good, why get into renewable energy? Why not just stick with rocks/dirt?

Does twiggy perhaps think, like I do, that the rocks/dirt business of the future is not going to be what it is now, hence the movement to green energy?


Reference hell in a hand basket - this is precisely what I'm anticipating. There are some very rough economic seas ahead for a lot of the world IMO, and china's not a ship I'd want to be on in said seas.

90% of my money is in U.S assets for a reason. NIO & DEG are basically my only other holdings and they're pure degen plays.

China Adds $14 Billion Cash as Evergrande’s Pain Roils Markets

China injected more cash into its banking system in a sign authorities are seeking to avert a funding squeeze amid a seasonal rise in financing demand and the intensifying debt crisis at China Evergrande.

www.bloomberg.com

I wouldn't be surprised if this is china's lehmann brothers' moment.

 

[againsthegrain]

How ironic if china now creates a global crash after creating a global pandemic, all that is left is a global war if things come in 3s

 

[over9k]

How ironic if china now creates a global crash after creating a global pandemic, all that is left is a global war if things come in 3s

How do you fight a war if you're bankrupt?

 

[againsthegrain]

How do you fight a war if you're bankrupt?

When bankrupt and backed into a corner fighting a war might be the only thing left, don't know how Stalin did it