FMG - Fortescue Ltd

[divs4ever]

but what is the talent pool like in 'green energy ' maybe one of the previous CEOs could improve their skill-set , after all FMG is no tiny company even now , wouldn't know the current company well but ready to learn more be a good fit as well

this isn't like starting to chase gold production and poaching an exec from Newmont or Barrick , 'green energy ' is a very steep learning curve as the area develops and morphs

 

[basilio]

but what is the talent pool like in 'green energy ' maybe one of the previous CEOs could improve their skill-set , after all FMG is no tiny company even now , wouldn't know the current company well but ready to learn more be a good fit as well

this isn't like starting to chase gold production and poaching an exec from Newmont or Barrick , 'green energy ' is a very steep learning curve as the area develops and morphs

I disagree. The areas they are developing are quite different to their traditional iron ore exploration. mining and transport. It's worth checking out the scope of FFI and the range of projects they intend to successfully develop. From what I can gather FMG wants to develop the projects with its own mangement and workforce rather than pulling in outsiders. I'm sure there will be an opportunity for current staff to reskill.

I believe it will take quite special skills to ensure the technical development of quite new technologies inside the financial and time strictures Twiggy will be demanding. The most apt comparison would be Elon Musk solving multiple new issues with car manufacturing and ensuring all the balls stay in the air.

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

 

[divs4ever]

but i have been burned previously by established companies striving into new directions but leaving the cash cow ( core business ) to carry on neglected , but having the kitty and credit rating plundered

now sure FMG might be different , but it has happened before , so it might happen again ( to a stock i hold )


i had lots of dreams over the last 65 years and have lots of bite-marks from reality

( unlike many long term FMG holders i am not in massive profits on FMG , so watching and worrying is obligatory here while i still have a graceful exit opportunity , to take if desired )

 

[bk1]

From what I can gather FMG wants to develop the projects with its own mangement and workforce rather than pulling in outsiders.

Let me get this right, FMG are secretly turning Iron Ore miners into hydrogen engineers? Solar panel fitters? Ship builders?

Your comparison to Musk is laughable, normally i would let this type of drivel pass, but on this occasion i felt obliged to comment.
Forrest is a placeholder for the any hydrogen revolution. He is buying into companies that have technology and presumably the associated IP. He will then seek to leverage that to get first mover advantage when and if he finds customers for green hydrogen in this country.

Fortescue buys into Dutch energy tech business

Fortescue’s green hydrogen arm has bought a 60 per cent stake in Netherlands-based High yield Energy Technologies Group (HyET).

www.businessnews.com.au

 

[Value Collector]

Let me get this right, FMG are secretly turning Iron Ore miners into hydrogen engineers? Solar panel fitters? Ship builders?

Your comparison to Musk is laughable, normally i would let this type of drivel pass, but on this occasion i felt obliged to comment.
Forrest is a placeholder for the any hydrogen revolution. He is buying into companies that have technology and presumably the associated IP. He will then seek to leverage that to get first mover advantage when and if he finds customers for green hydrogen in this country.

Fortescue buys into Dutch energy tech business

Fortescue’s green hydrogen arm has bought a 60 per cent stake in Netherlands-based High yield Energy Technologies Group (HyET).

www.businessnews.com.au

Fmg employs alot more people that simply Iron Ore miners, I think you are forgetting that FMG built their entire company from scratch, which included building massive amounts of infrastructure, including power plants, electric transmission systems, gas pipelines, processing plants, railways lines, ports, ships, airport, and many other parts.

This all takes a lot of skills which are transferable, not to mention the financing and deal making side of things which FMG has proved to be highly capable at.

But, also as has just been announced they are looking to employ some new top management with specialised skills in the area of renewables.

——————————-
watch the short interview at the 43.11 minute mark of this video, it only goes for 1 minute, and you will see that FMG does have a history of moving talent to different fields.

 

[divs4ever]

i am reasonably sure FMG are looking to add staff , the existing iron ore business ( and port facilities ) have a few years of operation left in them , while some engineers MIGHT be switched to the new area , i am guessing many will need to be hired or trained

now sure management has create a successful iron ore business , but this hydrogen path is relatively new at will face unpredicted costs and so far unwritten regulations , SOMETIMES first-mover is not the path to success but only a stepping-stone for those who come later

mankind has been making ( and using ) hydrogen for around 100 years ( it was what was in the Hindenburg ) the question is can it be made in bulk at a profit in the new world of ever-increasing regulations
now another sobering fact to face is iron ore prices are unusually high for this phase of the mining cycle , how many years can the iron price hold up to finance the new direction BECAUSE i do NOT see endless easy credit for decades ( years maybe ) but will hydrogen be a profitable venture by the time the the money machine goes for a rest .

 

[basilio]

Fmg employs alot more people that simply Iron Ore miners, I think you are forgetting that FMG built their entire company from scratch, which included building massive amounts of infrastructure, including power plants, electric transmission systems, gas pipelines, processing plants, railways lines, ports, ships, airport, and many other parts.

This all takes a lot of skills which are transferable, not to mention the financing and deal making side of things which FMG has proved to be highly capable at.

But, also as has just been announced they are looking to employ some new top management with specialised skills in the area of renewables.

——————————-
watch the short interview at the 43.11 minute mark of this video, it only goes for 1 minute, and you will see that FMG does have a history of moving talent to different fields.

That analysis reflects the more nuanced approach I believe FMG is taking in this expansion of the companies operations.

FMG's iron ore projects are largely mature,. The most significant new development will be the magnetite project which hopefully comes on line end of 2023. In that context the company and shareholders can anticipate steady revenue streams for the foreseeable future. If iron ore prices stay around $100 a tonne then dividends should be around $2 per share a year.

Changes to the iron ore section of FMG will be in lower costs as a result of renewable energy replacing fossil fuels and associated maintenance costs in mining, cartage and transport to markets.

The development of whole new industries in hydrogen production, solar energy, re engineering of ships, trains and other transport will require much new talent and capital. It will be interesting to see if they decide to increase the current 10% allocation net profits to FFI. Might be cleverer to just absorb some FFI capital works into the overall capital expenditure costs.

 

[Value Collector]

That analysis reflects the more nuanced approach I believe FMG is taking in this expansion of the companies operations.

FMG's iron ore projects are largely mature,. The most significant new development will be the magnetite project which hopefully comes on line end of 2023. In that context the company and shareholders can anticipate steady revenue streams for the foreseeable future. If iron ore prices stay around $100 a tonne then dividends should be around $2 per share a year.

Changes to the iron ore section of FMG will be in lower costs as a result of renewable energy replacing fossil fuels and associated maintenance costs in mining, cartage and transport to markets.

The development of whole new industries in hydrogen production, solar energy, re engineering of ships, trains and other transport will require much new talent and capital. It will be interesting to see if they decide to increase the current 10% allocation net profits to FFI. Might be cleverer to just absorb some FFI capital works into the overall capital expenditure costs.

I think the energy developments directly related to their mining business should come from general capital expenditure, and the 10% figure should be what is but in as equity into the large stand alone businesses separate from the mining business.

Once the concept is proven, and FFI have large pipeline of possible projects based on proven concepts, I would be happy if it just became a free for all, and all available capital went towards which ever projects promised decent returns.

 

[Value Collector]

I tried to find a video I watch a while back that showed how Fortescue designed all their Ore processing facilities and other infrastructure in house, which allowed them to Create really efficient mine to port outcomes, but I can’t find it, it showed that there is a lot of talent in fmg, more than most people give them credit for.

—————

In the process of looking for the other video I found this video I remember seeing years ago, it sounds like complete propaganda, the awesome part is though that FMG did everything they said they would in this video.

 

[divs4ever]

That analysis reflects the more nuanced approach I believe FMG is taking in this expansion of the companies operations.

FMG's iron ore projects are largely mature,. The most significant new development will be the magnetite project which hopefully comes on line end of 2023. In that context the company and shareholders can anticipate steady revenue streams for the foreseeable future. If iron ore prices stay around $100 a tonne then dividends should be around $2 per share a year.

Changes to the iron ore section of FMG will be in lower costs as a result of renewable energy replacing fossil fuels and associated maintenance costs in mining, cartage and transport to markets.

The development of whole new industries in hydrogen production, solar energy, re engineering of ships, trains and other transport will require much new talent and capital. It will be interesting to see if they decide to increase the current 10% allocation net profits to FFI. Might be cleverer to just absorb some FFI capital works into the overall capital expenditure costs.

yes $2 a year in divs is what i calculated when buying into FMG and the iron ore projects are mature rather than aging , so iron price should be a more immediate concern than mine life

am not sure the renewable energy will REDUCE costs ( only those harvesting hydro energy not wave ) have been good for me investment wise , but let's say resist increasing costs in traditional supplies , because FMG will still have to put plenty into R&D

another possible issue is will future government cut down on R&D tax breaks ( there is a LOT of money already loaded onto future taxpayers , and without migration our population is shrinking )

FMG has delivered ambitious plans before but boy-o-boy going forward there is a lot of uncertainty ahead ( even the global benchmark currency is under pressure )

 

[sptrawler]

From what I have read between the lines, the main driver for Twiggy is H2, the reason being he wants to produce green steel, that would be a Tesla event if he could manage it.
If he can put blast furnaces and steel furnaces in the Pibara, that don't require coal, that would be a game changer. Then steel could be shipped out as pre rolled to spec, or as ignots and then remelted in electric arc furnaces at destination and rolled to spec there.

 

[qldfrog]

But why would it be game changer? Stop for a sec.we can already buy lower emission greener steel from non China origin, but their dirty cheaper steel has and is still closing steel mills everywhere.
Unless cheaper, steel is steel..and whatever the green economy dreams of, the market for steel remains in China, India and developing countries.
So will H2 steel be cheaper?
That is the only question

 

[divs4ever]

personally i think 'green aluminum ' ( alloys ) is the way to go , aluminum creation is a big emissions tax target
aluminum should have a big future IF you can cut production costs , slashing tax liabilities would be a big help

but TF with his profitable iron ore project would see his ideas as 'value-adding ' on an existing asset

 

[Value Collector]

yes $2 a year in divs is what i calculated when buying into FMG and the iron ore projects are mature rather than aging , so iron price should be a more immediate concern than mine life

am not sure the renewable energy will REDUCE costs ( only those harvesting hydro energy not wave ) have been good for me investment wise , but let's say resist increasing costs in traditional supplies , because FMG will still have to put plenty into R&D

another possible issue is will future government cut down on R&D tax breaks ( there is a LOT of money already loaded onto future taxpayers , and without migration our population is shrinking )

FMG has delivered ambitious plans before but boy-o-boy going forward there is a lot of uncertainty ahead ( even the global benchmark currency is under pressure )

Fmg are currently building a hybrid electricity system in the Pilbara to run their mines, because lowering their energy costs has been a consistent goal for them.

6 years ago FMG’s electricity came from diesel generators, then they built a gas pipeline, gas powered power station and electricity transmission networkto get rid of the diesel and reduce costs.

Now they are adding in solar, wind and batteries to reduce the number of hours a day they have to burn natural gas.

Net step is to keep adding renewables to the system, and produce hydrogen from which they can make ammonia to eliminate diesel fuel from their trains and ships.

 

[sptrawler]

But why would it be game changer? Stop for a sec.we can already buy lower emission greener steel from non China origin, but their dirty cheaper steel has and is still closing steel mills everywhere.
Unless cheaper, steel is steel..and whatever the green economy dreams of, the market for steel remains in China, India and developing countries.
So will H2 steel be cheaper?
That is the only question

It depends on how much carbon tax is added to 'dirty' steel, the EU is pushing for a universal carbon tax, it looks as though the U.S will follow suit.
If that happens why would you buy Chinese steel, if it is dearer due to the tax.
So if China say, we will just drop the price,then all that happens is the tax is increased.
Eventually the only market China has got for dirty steel, is the domestic market, you have to remember the only reason countries buy Chinese steel is price, if it isn't cheaper then the decision will be do we install our own electric arc furnaces and rolling mills, or just buy pre rolled.
The EU with its abundance of renewables may decide to go that way and re establish its own steel industry a again.

Swedish Steelmaker Uses Hydrogen Instead Of Coal To Make Fossil-Free Steel

Swedish company HYBRIT hopes to decarbonize an industry responsible for some 5-8% of the globe’s carbon dioxide emissions.

www.forbes.com

From the article:
A number of Europe’s steel companies, as well as several ventures in the U.S., Canada and elsewhere, are testing methods to decarbonize steel, demand for which is set to rise around the world, potentially drastically. But HYBRIT is arguably the leader in the space: company executives are eager not to be castigated by millions of Swedes if their belching steel plants are the reason Sweden fails to meet its 2045 deadline to achieve carbon neutrality.


Right now add to that, in the Pilbara we have the ability to make copious amounts of H2 and have massive amounts of iron ore ka ching.
It's all just speculation, but very interesting, the main issue will be who can make the green H2 cheapest and in the biggest quantities IMO.

 

[dat111]

but what is the talent pool like in 'green energy ' maybe one of the previous CEOs could improve their skill-set , after all FMG is no tiny company even now , wouldn't know the current company well but ready to learn more be a good fit as well

this isn't like starting to chase gold production and poaching an exec from Newmont or Barrick , 'green energy ' is a very steep learning curve as the area develops and morphs

What is needed for a Green Energy CEO is someone who is void of scientific understanding or willing to ignore it and still look themselves in the mirror and preach the lie to take in government money.

 

[divs4ever]

What is needed for a Green Energy CEO is someone who is void of scientific understanding or willing to ignore it and still look themselves in the mirror and preach the lie to take in government money.

WOW !!

that could be a long line of candidates , but would Twiggy be OK with that ( some other boards would be fine and only need to search internally )

 

[dat111]

WOW !!

that could be a long line of candidates , but would Twiggy be OK with that ( some other boards would be fine and only need to search internally )

Unfortunately, Elizabeth Gaines is not one of them...

 

[divs4ever]

time will tell , i have been crippled ( profit-wise ) by 'rock-star imports ' before ( all reputation and no performance when there is a 'bare-earth project ' to build )

be half ready for a period of revolving door directors

 

[Country Lad]

Fortescue and Alinta switch on Australia’s biggest solar farm outside of main grids

Iron ore producer Fortescue Metals Group and Alinta Energy have formally opened the country’s biggest solar farm outside of the country’s main electricity grids, the 60MW Chichester Hub solar farm that will help power two big mines.
Alinta Energy managing director and CEO Jeff Dimery says the opening is a giant leap forward in the race to a low carbon energy future.
“We took an ambitious brief from Fortescue, who wanted to dramatically slash their emissions, and made it a reality in just three years,” Dimery said in a statement.
“I can’t understate the engineering challenge of designing and building a renewable solution on this scale, in a harsh environment like the Pilbara, to meet the reliability standards of mines like these.”

Fortescue and Alinta switch on Australia’s biggest solar farm outside of main grids

Alinta and Fortescue open largest solar farm outside of the main grids, and it accounts for 100 pct of daytime electricity needs of two nearby mines.

reneweconomy.com.au