FMG - Fortescue Ltd

[Austwide]

Last year Twiggy didn't pay the expected bonuses, reckoning the big profits were due to IO prices and not management skills.

So as contracts ends or other jobs come along, I would expect a few to move on.

 

[finicky]

Twiggy is trying to lock down hundreds of agreements around the world to develop renewable energy projects to be funded by hundreds of billions in debt deals ..

Hundreds of billions of debt - is that a typo?
He's a risk it all gambler and he looks like he enjoys a drink; there's key man risk along with concept to realisation risk and then starting off with mountains of debt again. I reckon he had some luck with the sustained price of iron ore when FMG was in debt. I assume FMG will be cordoned off from debt recourse?

 

[divs4ever]

maybe, remember some of these are long term plans AND a billion in ten years time could easily be the current equivalent of a million

remember back when a TRILLION was a jaw-dropping number .. well currently the US national debt is over $30 TRILLION and jaws are NOT welded to the floor

 

[divs4ever]

Record half year shipments contribute to net profit after tax of US$2.8 billion and a fully franked interim dividend of A$0.86 per share Highlights
• Ongoing improvement in safety with the Total Recordable Injury Frequency Rate (TRIFR) of 1.8 for the 12 months to 31 December 2021, 14 per cent lower than 31 December 2020 • Strong operating performance across the supply chain contributed to record half year iron ore shipments of 93.1 million tonnes (mt), three per cent higher than H1 FY21
• Underlying EBITDA of US$4.8 billion for the six months ending 31 December 2021 (H1 FY22), with an Underlying EBITDA margin of 59 per cent
• Net profit after tax (NPAT) of US$2.8 billion and earnings per share (EPS) of US$0.90 (A$1.24)
• Net cashflow from operating activities of US$2.1 billion after payment of the FY21 final tax instalment of US$915 million
• Capital expenditure of US$1.5 billion, inclusive of US$589 million investment in the Iron Bridge growth project and the Pilbara Energy Connect decarbonisation project
• Fully franked interim dividend declared of A$0.86 per share, representing a 70 per cent payout of H1 FY22 NPAT
• Strong balance sheet maintained with net debt of US$1.7 billion at 31 December 2021, inclusive of cash on hand of US$2.9 billion
• Announced an industry leading target to achieve net zero Scope 3 emissions by 2040
• Recognised for outstanding corporate sustainability performance with the inclusion in the 2022 S&P Global Sustainability Yearbook with a Gold Class Sustainability Award
• Fortescue Future Industries continues to rapidly advance a global portfolio of green energy projects and decarbonisation technologies
• Guidance for FY22 shipments, C1 cost and capital expenditure is unchanged.
Fortescue Chief Executive Officer, Elizabeth Gaines, said “Fortescue’s performance for the first half of FY22 has been outstanding and we are proud of the entire team who have delivered record half year shipments and contributed to net profit after tax of US$2.8 billion, the third highest in Fortescue’s history. “Safety is our number one priority and the team’s continued focus resulted in further improvement in our TRIFR safety performance while managing the ongoing challenges resulting from COVID19.
We have a robust COVID-19 management plan in place to prioritise the health and safety of our team and the communities in which we operate, and this is constantly reviewed considering Commonwealth and State health requirements.
Fortescue Metals Group Ltd ABN 57 002 594 872 Level 2, 87 Adelaide Terrace, East Perth, Western Australia 6004 PO Box 6915, East Perth, Western Australia 6004 P +61 8 6218 8888 E fmgl@fmgl.com.au W www.fmgl.com.au Page 2 of 7 “We have continued to reinvest in the business and invest in growth. Our major project, Iron Bridge is progressing well with first production scheduled in December 2022. We remain focused on managing industry cost pressures and challenges posed by Western Australia’s ongoing border restrictions, and we are working closely with the Western Australian Government and relevant authorities to ensure we have access to the specialist skills required. “During the half, Fortescue Future Industries continued to advance a portfolio of renewable energy and green hydrogen project opportunities, while growing its green technology capabilities. As Fortescue continues its transition to a vertically integrated green energy and resources company, Fortescue Future Industries will be a key enabler of our industry-leading targets to decarbonise our operations by 2030 and to remove net emissions from our entire value chain by 2040. “Guided by our unique culture and Values, Fortescue is strongly positioned to deliver on our strategic priorities of optimising returns from our mining operations and investing in growth and green energy, supported by our strong balance sheet and disciplined capital allocation framework.
Our commitment to ESG leadership continues to gain recognition, including the recent distinction of a Gold Class award in the S&P Global Corporate Sustainability Assessment. “The strength of our financial and operating performance, together with our ongoing commitment of delivering returns to shareholders, has resulted in the Board declaring a fully franked interim dividend of A$0.86 per share, representing a 70 per cent payout of the first half net profit after tax. We have had a strong start to the second half which positions us well to deliver on our guidance for the full year,” Ms Gaines said. Sustainability
• Health and safety is Fortescue’s highest priority, and the Fortescue family were devastated by the death of team member David Armstrong on 30 September 2021. The Company continues to work with authorities to investigate the incident as well as making support available to his team members and family.
• A continued focus on safety contributed to a Total Recordable Injury Frequency Rate (TRIFR) of 1.8 for the 12 months to 31 December 2021, a 14 per cent improvement on 31 December 2020.
• Fortescue’s comprehensive COVID-19 management plan remains in place to safeguard Fortescue team members and communities. In response to the increase in COVID-19 community transmission in Western Australia, Fortescue has recently introduced enhanced screening and testing, and is investing in business continuity measures.
• During the half year, a Workplace Integrity Review was conducted together with an independent assessment of site security and safety measures. As a result, a number of initiatives to enhance the safety, culture and experience of working at Fortescue were implemented. All team members are strongly encouraged to Speak Up, in line with Fortescue’s Values and a zerotolerance approach to harassment, bullying and intimidation.
• Fortescue is progressing a range of initiatives to decarbonise its operations by 2030. An important milestone was achieved in the period with the completion of the 60MW Alinta Energy Chichester Solar Gas Hybrid project, which will displace about 100 million litres of diesel annually. The Company announced an industry leading target to achieve net zero Scope 3 emissions by 2040, addressing emissions across its entire value chain.
• Consistent with Fortescue’s commitment to protect places of cultural significance, engagement with Native Title partners remains a priority. In September 2021, Fortescue established a groundbreaking co-management framework with members of the Wintawari Guruma Aboriginal Corporation to oversee the development of new mining areas at the Solomon Hub operations.
• In December 2021 the Aboriginal Cultural Heritage Bill 2021 passed the Western Australian Parliament and was proclaimed into law. Fortescue supports the modernisation of Western Australia’s Aboriginal heritage legislation and will actively engage in contributing to the co-design of the important regulations and guidance which will shape the transition from the 1972 Act. Fortescue Metals Group Ltd ABN 57 002 594 872 Level 2, 87 Adelaide Terrace, East Perth, Western Australia 6004 PO Box 6915, East Perth, Western Australia 6004 P +61 8 6218 8888 E fmgl@fmgl.com.au W www.fmgl.com.au Page 3 of 7
• Fortescue’s commitment to sustainability continues to generate recognition, with the Company achieving industry leading status in the MSCI ESG ratings, a Gold Class award in the S&P Global Corporate Sustainability Assessment and membership of the Australian, Asia Pacific and World Dow Jones Sustainability Indices. Fortescue Future Industries
• Fortescue Future Industries (FFI) is taking a global leadership position in green energy and green technology, leading the effort to decarbonise hard-to-abate sectors.
• FFI is investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030.
• In November 2021 FFI received planning approval from the Queensland Government for the Global Green Energy Manufacturing Centre in Gladstone, Queensland. The first stage development is an electrolyser manufacturing facility with initial capacity of two gigawatts per annum with investment of up to US$83 million.
• FFI has successfully completed the first phase of studies with Incitec Pivot Limited to convert the Gibson Island ammonia production facility to be powered by green hydrogen. The next phase is to progress the project to a Front End Engineering Design study to refine cost, schedule, permitting and commercial agreements.
• In January 2022 Fortescue announced it had entered into an agreement to acquire Williams Advanced Engineering Limited (WAE). WAE will be vertically integrated into Fortescue and will be managed via FFI. FFI will utilise WAE’s critical technology and expertise in high-performance battery systems and electrification to accelerate the decarbonisation of Fortescue’s iron ore operations.
• FFI progressed rail decarbonisation initiatives with the arrival of two additional four stroke locomotives for testing on a blended ammonia fuel system; and in January 2022 announced the purchase of two battery electric locomotives for delivery in 2023.
• Fortescue’s capital allocation policy includes the allocation of 10 per cent of NPAT to fund FFI. As at 31 December 2021, the unutilised funding commitment is US$651 million after H1 FY22 operating and capital expenditure of US$242 million.
• FFI’s FY22 anticipated expenditure is US$400 - US$600 million, inclusive of US$100 - US$200 million of capital expenditure and US$300 - US$400 million of operating expenditure. Operational and financial performance
• The strong operating performance across Fortescue’s supply chain, together with the successful integration of Eliwana, contributed to record first half iron ore shipments and ore processed.
• Revenue of US$8.1 billion in H1 FY22 decreased 13 per cent on H1 FY21. Average revenue of US$96/dry metric tonne (dmt) represented a 70 per cent realisation of the average Platts 62% CFR Index (H1 FY21: US$114/dmt, 90 per cent realisation).
• C1 cost of US$15.28/wet metric tonne (wmt) was 20 per cent higher than H1 FY21 as a result of price escalation of key input costs, including diesel, other consumables and labour rates, the integration of Eliwana as well as mine plan driven cost escalation. • Underlying EBITDA of US$4.8 billion was 28 per cent lower than H1 FY21 with an Underlying EBTIDA margin of 59 per cent (H1 FY21: US$6.6 billion, 71 per cent margin).
• NPAT of US$2.8 billion decreased by 32 per cent compared to H1 FY21 (US$4.1 billion). Earnings per share was US$0.90 (A$1.24).

DYOR

i hold FMG

GAME ON !!

i was hoping for a $1 div. but still have a top up order in around $18.80

 

[basilio]

The market has sold down FMG after the announcement. I'm sure some people are disappointed in the dividend fall. However last years result was totally exceptional and non one expected it to continue at anywhere near the same levels

The dividend payout was also lowered to 70% of profits to reflect the need to support a range of new investments across the whole span of FMG activity.

Taking a broader perspective FMG is still showing a fully franked yield of 8-9% while creating a raft of hopefully new profit generating projects. I'm happy.

 

[divs4ever]

am not unhappy with the results , but will be a tiny bit happier if that top-up order is hit

but let's face it , i got more div. than i hoped for ( full the WHOLE ) year last half , so am not particularly bitter

 

[Value Collector]

Taking a broader perspective FMG is still showing a fully franked yield of 8-9% while creating a raft of hopefully new profit generating projects. I'm happy.

If some bought their shares at $22.50, an $0.86 dividend franked dividend for 6 months is equal to earning bank interest of 11%, what is not to like about that,

So even if the dividends stayed at this level, you still have your money earning 11%, plus as you mentioned you have the 30% retained earnings that is being used to build even more income assets for you that will show results over time,

The Iron ore price is stronger in the current half, so the next dividend will probably be higher, (unless the payout ration is changed)

 

[Value Collector]

but let's face it , i got more div. than i hoped for ( full the WHOLE ) year last half , so am not particularly bitter

Yep, lets face it if you count the last two dividends together (inc franking) its over an 18% return if you bought your shares for $22.50 not a bad capital allocation in my view, better than holding cash in the bank, and its a lot higher if you bought for less.

Not to mention that if you bought your shares for $3 when I first started posting on here about FMG, the last 12 months has been a 140% dividend yield (inc franking), which still blows my mind.

 

[Value Collector]

Hundreds of billions of debt - is that a typo?
He's a risk it all gambler and he looks like he enjoys a drink; there's key man risk along with concept to realisation risk and then starting off with mountains of debt again. I reckon he had some luck with the sustained price of iron ore when FMG was in debt. I assume FMG will be cordoned off from debt recourse?

Yeah, most of the debt will be non recourse bonds secured by the underlying project,

eg, if they decide to build a hydro power scheme in PNG, the will put in some of the equity, and then sell green bonds for that project, but the project will be its own entity, the green bonds will be a long term part of the capital structure.

 

[divs4ever]

i only started buying since August last year and the average is $17.05 ( because i bought more ex. div. in the slide after )

but i have held GRR since 2012 after with a little bit of effort that has been a very nice consolation prize ( up 290% and paid a few divs as well

but the trick in shares is buying at the better times ( and not be forced to sell )

so if i miss these cum. div. , i will CONSIDER lowering the buy price and waiting ex-div.

no hurry for me

 

[Value Collector]

i only started buying since August last year and the average is $17.05

Thats a 14% annual rate dividend for you then at $0.86 franked per 6 months. (including franking)

+ a nice capital gain for you.

 

[sptrawler]

Thats a 14% annual rate dividend for you then at $0.86 franked per 6 months. (including franking)

+ a nice capital gain for you.

Yes I must thank the ASF members like yourself @basilio ,@divs4ever etc for the input on the FMG thread, I really hadn't followed them much in the past, but you members got me in at $14.57 on 19/10/21.
So cheers everyone keep up the good input and robust debate.

 

[basilio]

Yes I must thank the ASF members like yourself @basilio ,@divs4ever etc for the input on the FMG thread, I really hadn't followed them much in the past, but you members got me in at $14.57 on 19/10/21.
So cheers everyone keep up the good input and robust debate.

Indeed. To be fair as far as I can see it was VC's long term analysis that has been the major driver of ASF investors. It certainly turned my head and I have continued to follow it carefully. And getting back in at $14 plus late last year was a fantastic opportunity.

So far so good.

 

[divs4ever]

i have found my calculator has been an invaluable friend , sometimes the maths are compelling ( but you still have to guess the risk you are taking on )

i think FMG will be the topic of gossip ( discussion ) for another couple of years at least
all those worry-warts ( like me ) looking at those huge complex projects , wondering if they can pull off a second massive project

but stay tuned the short-sellers are attracted to FMG as well ( they might still give us a bargain or two )

 

[Country Lad]

Yes I must thank the ASF members.

I must thank a non member here (fastoy on another forum many moons ago) with whom I had debates about GRR or FMG. He convinced me on FMG in the end.

 

[dat111]

Yep, lets face it if you count the last two dividends together (inc franking) its over an 18% return if you bought your shares for $22.50 not a bad capital allocation in my view, better than holding cash in the bank, and its a lot higher if you bought for less.

Not to mention that if you bought your shares for $3 when I first started posting on here about FMG, the last 12 months has been a 140% dividend yield (inc franking), which still blows my mind.

I have been buying since 2004 and my lowest purchase price is $1.5 USD on 11/11/2008 my highest purchase price was $10.98 USD on 9/17/2021... My first purchase was for $44.10 USD which was prior to the 1 for 10 split....

 

[basilio]

If you can get this story on AFR it is well worth a read.

Analyses the why the drive to creat a renewable energy based FMG will result in a more competitive and profitable FMG as well as offering a whole new external profit centre.

Also points out how the risks of FFI are kept within the subsidiary company and thus will not represent a threat to the profits of the iron ore investments.

Worth checking out if someone else can copy more onto the thread. (I was able to read it on my phone but not the computer)

What Australia’s best funded start-up means to Fortescue

It makes sense for Andrew Forrest to fund his green hydrogen ambitions through FMG because of the risk mitigation from China sourcing its iron ore elsewhere.

www.afr.com

 

[Skate]

Worth checking out if someone else can copy more onto the thread. (I was able to read it on my phone but not the computer)

What Australia’s best-funded start-up means to Fortescue (Feb 16, 2022)​

It makes sense for iron ore billionaire Andrew Forrest to fund his green hydrogen ambitions through FMG because of the risk mitigation from China sourcing its iron ore elsewhere.

During its short life, Fortescue Future Industries has attracted more than its fair share of critics, including those who claim it should not be funded by Fortescue Metals Group.

The purist iron ore investors, who bought FMG for its strong cash flow generation and its capacity to pay market-leading dividends, object to 10 per cent of FMG’s profits going to FFI each year. FMG chief executive Elizabeth Gaines says the company’s hydrogen strategy will have no shortage of funding.

The argument against FFI being inside FMG is framed as a governance problem for the FMG board because of the conflict of interest between Andrew Forrest’s green hydrogen ambitions and the interests of FMG shareholders.

Safety net​

What this ignores is the scale of the green energy growth option being shared with FMG shareholders and the benefits that will flow to FMG’s iron ore business from FFI achieving its objectives.

Forrest, who is chairman of FMG and FFI, could have funded the green hydrogen project through his private company by cranking up FMG’s dividend payout ratio. But by keeping FFI under the FMG umbrella, he protects the company against the threat of China finding alternative sources of iron ore over the next decade.

FMG’s outgoing chief executive, Elizabeth Gaines, says the market fails to understand the financial upside for FMG shareholders from having a symbiotic relationship with FFI. “Our view is that the market is recognising that there is a genuine value that’s being created by FFI and the ambitions that we have,” she says. “We’re seeing interest, certainly from our offshore investors, in the activities of FFI, the strategy that we will deliver on by 2030, and the efforts to decarbonise Fortescue.

“A lot of analysts are putting in the capital for decarbonising iron ore operations. They’re doing that for us and our competitors. They’re putting in the costs, but they’re not actually modelling the benefits.

“The benefits will be lower energy costs, better ESG outcomes and lower emissions. We won’t have to rely on expensive offsets. There are genuine benefits, and I think there is still a disconnect between the cost versus the value that’s created.”

FMG’s half-year results included increased transparency of FFI’s funding and expenditure.

FFI’s expenses rose by $US152 million ($212.4 million) to $US174 million in the six months to December 31, “due to the ramp-up in personnel supporting an increase in project assessments and feasibility studies for FFI initiatives”.

Green credentials​

The company said FFI’s expenses were “associated with studies for key projects and expenditure on emerging technologies to develop green electricity, green hydrogen and green ammonia projects in both Australia and globally”.
FFI, which aims to produce 15 million tonnes of green hydrogen by 2030, had $US651 million sitting in the bank as of December 31, after the first-half operating and capital expenditure of $US242 million.

For this fiscal year, FFI’s expenditure is expected to be between $US400 million and $US600 million, inclusive of $US100 million to $US200 million of capital expenditure and $US300 million to $US400 million of operating expenditure.

It is pretty obvious that FFI is the best funded start-up in Australia and will remain so if FMG continues to tip 10 per cent of net profits into the company.

The funding formula means FFI should receive another $US1.8 billion in funding over the next five years, based on the consensus earnings forecasts published by S&P Global Market Intelligence.

Gaines is quick to point out that the bulk of the capital expenditure for green hydrogen projects undertaken by FFI will come from third parties or financial markets and not FMG shareholders.

“FFI will need a source of funding for those projects ... that might be specific project financing, it could be green-related financing, a green and social investment, or it might be partnering with others – there’s a range of opportunities.

“They’ll be assessed on a project-by-project basis. But we’re very disciplined in protecting Fortescue’s balance sheet and the investment-grade credit metrics. “At the same time, we’re committed to decarbonise because it’s the smart thing to do, and it will actually grow value for our stakeholders in our mining operations.”

Skate.

 

[Sean K]

What Australia’s best-funded start-up means to Fortescue (Feb 16, 2022)​

It makes sense for iron ore billionaire Andrew Forrest to fund his green hydrogen ambitions through FMG because of the risk mitigation from China sourcing its iron ore elsewhere.

During its short life, Fortescue Future Industries has attracted more than its fair share of critics, including those who claim it should not be funded by Fortescue Metals Group.

The purist iron ore investors, who bought FMG for its strong cash flow generation and its capacity to pay market-leading dividends, object to 10 per cent of FMG’s profits going to FFI each year. FMG chief executive Elizabeth Gaines says the company’s hydrogen strategy will have no shortage of funding.

The argument against FFI being inside FMG is framed as a governance problem for the FMG board because of the conflict of interest between Andrew Forrest’s green hydrogen ambitions and the interests of FMG shareholders.

Safety net​

What this ignores is the scale of the green energy growth option being shared with FMG shareholders and the benefits that will flow to FMG’s iron ore business from FFI achieving its objectives.

Forrest, who is chairman of FMG and FFI, could have funded the green hydrogen project through his private company by cranking up FMG’s dividend payout ratio. But by keeping FFI under the FMG umbrella, he protects the company against the threat of China finding alternative sources of iron ore over the next decade.

FMG’s outgoing chief executive, Elizabeth Gaines, says the market fails to understand the financial upside for FMG shareholders from having a symbiotic relationship with FFI. “Our view is that the market is recognising that there is a genuine value that’s being created by FFI and the ambitions that we have,” she says. “We’re seeing interest, certainly from our offshore investors, in the activities of FFI, the strategy that we will deliver on by 2030, and the efforts to decarbonise Fortescue.

“A lot of analysts are putting in the capital for decarbonising iron ore operations. They’re doing that for us and our competitors. They’re putting in the costs, but they’re not actually modelling the benefits.

“The benefits will be lower energy costs, better ESG outcomes and lower emissions. We won’t have to rely on expensive offsets. There are genuine benefits, and I think there is still a disconnect between the cost versus the value that’s created.”

FMG’s half-year results included increased transparency of FFI’s funding and expenditure.

FFI’s expenses rose by $US152 million ($212.4 million) to $US174 million in the six months to December 31, “due to the ramp-up in personnel supporting an increase in project assessments and feasibility studies for FFI initiatives”.

Green credentials​

The company said FFI’s expenses were “associated with studies for key projects and expenditure on emerging technologies to develop green electricity, green hydrogen and green ammonia projects in both Australia and globally”.
FFI, which aims to produce 15 million tonnes of green hydrogen by 2030, had $US651 million sitting in the bank as of December 31, after the first-half operating and capital expenditure of $US242 million.

For this fiscal year, FFI’s expenditure is expected to be between $US400 million and $US600 million, inclusive of $US100 million to $US200 million of capital expenditure and $US300 million to $US400 million of operating expenditure.

It is pretty obvious that FFI is the best funded start-up in Australia and will remain so if FMG continues to tip 10 per cent of net profits into the company.

The funding formula means FFI should receive another $US1.8 billion in funding over the next five years, based on the consensus earnings forecasts published by S&P Global Market Intelligence.

Gaines is quick to point out that the bulk of the capital expenditure for green hydrogen projects undertaken by FFI will come from third parties or financial markets and not FMG shareholders.

“FFI will need a source of funding for those projects ... that might be specific project financing, it could be green-related financing, a green and social investment, or it might be partnering with others – there’s a range of opportunities.

“They’ll be assessed on a project-by-project basis. But we’re very disciplined in protecting Fortescue’s balance sheet and the investment-grade credit metrics. “At the same time, we’re committed to decarbonise because it’s the smart thing to do, and it will actually grow value for our stakeholders in our mining operations.”

Skate.

Skate, or anyone, how does this work?

But by keeping FFI under the FMG umbrella, he protects the company against the threat of China finding alternative sources of iron ore over the next decade.

Why would keeping FFI within FMG be motivation for China not to look for better quality or cheaper IO elsewhere? Green credentials? Would that really be a commercial factor for China?

And this:

the market fails to understand the financial upside for FMG shareholders from having a symbiotic relationship with FFI.

It's going to be years, perhaps a decade or more before any of these green projects get up and running. Changing their trucks and trains to run on ammonia is not financial upside really. And 'symbolic relationship', how does that generate cash?

The way it looks at the moment, FMG will have put about $1b into FFI shortly, and maybe up to $7b by the end of the decade, and massively increased their human resources expenditure without having any of their proposed projects anywhere near making a profit for a couple more decades.

 

[Value Collector]

Skate, or anyone, how does this work?



Why would keeping FFI within FMG be motivation for China not to look for better quality or cheaper IO elsewhere? Green credentials? Would that really be a commercial factor for China?

And this:



It's going to be years, perhaps a decade or more before any of these green projects get up and running. Changing their trucks and trains to run on ammonia is not financial upside really. And 'symbolic relationship', how does that generate cash?

The way it looks at the moment, FMG will have put about $1b into FFI shortly, and maybe up to $7b by the end of the decade, and massively increased their human resources expenditure without having any of their proposed projects anywhere near making a profit for a couple more decades.

The green projects won’t take a decade to show results, many will producing results incrementally as different stages are completed, for example FMG already have 60MW of solar installed and producing, which is directly offsetting the consumption of natural gas.

As they continue to roll out gigs watts of solar, wind and batteries, they won’t be waiting till it’s 100% complete before linking it up to their grid, they will link it up in stages.

Your comment also reminds me of a conversation I had with my Dad back in 2009, a Gas company we were invested in was planning to build Australia’s first LNG export plant, but it wasn’t going to be complete until 2013, I was excited about project, but Dad couldn’t be fussed about it because 2013 was 4 years away.

But, now it’s 2022 and that LNG plant has been making money for 9 years, and the projects 4 year time frame seems like nothing.(our company got taken over before the plant was completed, and me made a lot of money)

My point is time will pass anyway, you may as well be investing in long term projects if the end result having stronger cash flows in the future, and especially if as in FMG’s case holding the company provides you will above average income returns in the mean time anyway.