FMG - Fortescue Ltd

[waterbottle]

Airbus strikes deal with Australia's Fortescue as airlines seek hydrogen boost

European planemaker Airbus chose the Australian miner Fortescue Metals Group Ltd's hydrogen unit to help it reduce CO2 emissions from flying, Fortescue Future Industries (FFI) said in a statement on Tuesday.

www.reuters.com

Interesting opportunity for Fmg here now that Russia and Ukraine are at war. Europe is looking for another iron ore supplier and alternative energy sources.

 

[sptrawler]

Reserve bank member to join FFI, this will open a lot of doors IMO and also give a lot of financial insight for FFI.

RBA deputy governor Guy Debelle to join Fortescue's renewable energy push

Reserve Bank deputy governor Guy Debelle is leaving the bank to join Andrew Forrest's renewable energy business, Fortescue Future Industries.

www.abc.net.au

Ahead of the looming federal election, Dr Debelle has announced his resignation from the RBA to join billionaire mining magnate Andrew Forrest's Fortescue Future Industries (FFI) as its chief financial officer.

It is a surprise announcement given Dr Debelle was only reappointed deputy last year and was seen by many as being the front runner to be appointed the next RBA governor.

 

[divs4ever]

i see it as a red flag

a will be keeping a watchful distance from the buy ( extra ) button for an extended time now

this is one of the few times i would have preferred an experienced corporate banker ( from say Macquarie or UBS etc etc )

 

[Country Lad]

this is one of the few times i would have preferred an experienced corporate banker ( from say Macquarie or UBS etc etc )

I think they have plenty of access to top bankers without the need to employ one.

Reserve bank member to join FFI, this will open a lot of doors IMO and also give a lot of financial insight for FFI.

Yep, that is likely why he will be there, after all it is as the CFO.

Dr Debelle joined the RBA in 1994. He has also worked at the International Monetary Fund, Bank for International Settlements, Australian Treasury and as a visiting professor in economics at the Massachusetts Institute of Technology (MIT). He graduated from the University of Adelaide with an honours degree in economics and gained his PhD in economics at MIT under Stanley Fischer and Rudi Dornbusch. Dr Debelle is well regarded in the central banking community, financial markets and the Australian business community.

 

[sptrawler]

i see it as a red flag

a will be keeping a watchful distance from the buy ( extra ) button for an extended time now

this is one of the few times i would have preferred an experienced corporate banker ( from say Macquarie or UBS etc etc )

That is an interesting take divs, I see it as a huge plus, the push to hydrogen is going to require a lot of Government influence, it really is difficult to justify on a financial basis alone IMO.
So having someone with a working knowledge of the Government financial structures and their limitations, protocols etc I would have thought would be a huge plus.
Certainly a big call by Twiggy and I guess it would have been an offer hard to refuse.
I'm hoping that FMG hit the mid $14's again, so I can pick up more.

 

[divs4ever]

That is an interesting take divs, I see it as a huge plus, the push to hydrogen is going to require a lot of Government influence, it really is difficult to justify on a financial basis alone IMO.
So having someone with a working knowledge of the Government financial structures and their limitations, protocols etc I would have thought would be a huge plus.
Certainly a big call by Twiggy and I guess it would have been an offer hard to refuse.
I'm hoping that FMG hit the mid $14's again, so I can pick up more.

i would have thought Twiggy had generated sufficient respect and goodwill by now , not to need anyone to do PR , because that is all i can see here .

get too deeply entangled in governments ( and bureaucrats ) and they tend to think they own you , and THAT was the personal opinion of a former senior banker .

i will be watching VERY CAREFULLY from now on

 

[divs4ever]

I think they have plenty of access to top bankers without the need to employ one.




Yep, that is likely why he will be there, after all it is as the CFO.

Dr Debelle joined the RBA in 1994. He has also worked at the International Monetary Fund, Bank for International Settlements, Australian Treasury and as a visiting professor in economics at the Massachusetts Institute of Technology (MIT). He graduated from the University of Adelaide with an honours degree in economics and gained his PhD in economics at MIT under Stanley Fischer and Rudi Dornbusch. Dr Debelle is well regarded in the central banking community, financial markets and the Australian business community.

and how has Guy done at the RBA in all those years , and he certainly didn't torpedo MMT at MIT either

i would say Twiggy has done much more for the Australian economy ( and balance of payments ) already

 

[Country Lad]

and how has Guy done at the RBA in all those years , and he certainly didn't torpedo MMT at MIT either

No idea, I don't know him, never met him so unlike yourself, I am not in a position to bag or praise him. Others better qualified that I have him in high regard so I will look forward to seeing results from the whole team at FFI.

 

[Garpal Gumnut]

Some " warming the cockles of one's heart " news from my good friends at RenewEconomy on FMG.

Basically Twiggy's green energy Hydrogen targets once thought to be pie in the sky just 12 months ago are now achievable within FFI.

There is a summary and a link to an interview with Julie Shuttleworth.

Fortescue says its “very stretch” 15m tonne green hydrogen targets now very achievable

Fortescue CEO admits 15 million green hydrogen target by 2030 was “very stretch”, but now seems very achievable given developments over last 12 months.

reneweconomy.com.au

gg

 

[systematic]

I'm out

I guess finding a reason to override was never going to work...I'm just a ?

Between FMG (21 months) and CIA (19 months) I was >30% of portfolio in iron ore...and that's after offloading another iron ore play at the end of last year. So, I was pretty well weighed down with it all

I've still got CIA so I'll go see if anyone is on that thread. Long may FMG prosper ?

Not quite a year...I'm back in as of yesterday.

 

[Ann]

Wuk-a-duk I have just seen an island bottom on FMG. Everywhere I am looking I am seeing amazing opportunities for price rises. I need a doggy bag!

 

[Ann]

Just wacked in a bid for $18.15. See if I get it. May not, don't care!

 

[Ferret]

An interesting question about FMG at the AFIC briefing today.

Asked why AFIC holds BHP and RIO but not FMG, AFIC cited the diversification and higher ore quality of BHP & RIO.

They also expressed some concern of the money being thrown at FFI. They are not yet convinced that this will be money well spent.

 

[divs4ever]

An interesting question about FMG at the AFIC briefing today.

Asked why AFIC holds BHP and RIO but not FMG, AFIC cited the diversification and higher ore quality of BHP & RIO.

They also expressed some concern of the money being thrown at FFI. They are not yet convinced that this will be money well spent.

interesting , but cautious , however as a former holder of RIO ( sold several years back ) and current holder of BHP and FMG ( FMG bought the last half of 2021 ) i would have preferred FMG ( better growth potential ) over RIO

given recent investments by BHP ( say the oil/shale gas investments/divestments ) one might ask the same question of BHP as well

so are AFI going for ore quality over management quality ??

 

[Dona Ferentes]

An interesting question about FMG at the AFIC briefing today.

Asked why AFIC holds BHP and RIO but not FMG, AFIC cited the diversification and higher ore quality of BHP & RIO.

and also mentioned the likelihood of Guinea ore (Simandou) arriving on market soon This will be high Fe content, which attracts the higher price. Implied will be lower prices than currently

They also expressed some concern of the money being thrown at FFI. They are not yet convinced that this will be money well spent.

Yes they did. "Our research process is built on observing the key characteristics of a company that our experience indicates will produce strong investment returns."

 

[Value Collector]

An interesting question about FMG at the AFIC briefing today.

Asked why AFIC holds BHP and RIO but not FMG, AFIC cited the diversification and higher ore quality of BHP & RIO.

They also expressed some concern of the money being thrown at FFI. They are not yet convinced that this will be money well spent.

BHP and Rio are not that diversified really, Iron Ore makes a part of both of their businesses, and Bhp is in the process of getting rid of its Oil business.

So I don’t see the benefit of paying a substantial premium for BHP and RIO for “diversification” when you they are getting 2 thirds of their profit from Iron Ore anyway.

Paying a high price for a diversified company is probably not worth it if you can build a diversified portfolio of cheap non diversified companies yourself.

 

[divs4ever]

BHP and Rio are not that diversified really, Iron Ore makes a part of both of their businesses, and Bhp is in the process of getting rid of its Oil business.

So I don’t see the benefit of paying a substantial premium for BHP and RIO for “diversification” when you they are getting 2 thirds of their profit from Iron Ore anyway.

Paying a high price for a diversified company is probably not worth it if you can build a diversified portfolio of cheap non diversified companies yourself.

yes currently ( especially after BHP divests the petroleum arm ) i would have to agree there

now i was buying BHP BEFORE the S32 demerger so on the surface i look to have gotten 'good value ' and hopefully AFIC was buying then , and earlier , i struggle to determine a $50 BHP good value ( but was happily buying sub $20 around the end of 2015 )

whereas the numbers crunched attractively for me in the last half year on FMG , but yes i have small holding in several junior miners ( and S32 ) to diversify risk and commodity exposure , allowing plenty of room for 'cherry-picking '

but then AFIC has to balance administration costs with income received , so a pragmatic balancing act , while a 'hands-on' small investor can be more agile and flexible

 

[Garpal Gumnut]

An interesting question about FMG at the AFIC briefing today.

Asked why AFIC holds BHP and RIO but not FMG, AFIC cited the diversification and higher ore quality of BHP & RIO.

They also expressed some concern of the money being thrown at FFI. They are not yet convinced that this will be money well spent.

The other simple reason for AFIC's reasoning is that they may have missed out on FMG at $14 when BHP was a bargain.

Bigger pots have to make bigger decisions and have bigger regrets.

Like us all AFIC have to justify their regrets.

gg

 

[Value Collector]

and also mentioned the likelihood of Guinea ore (Simandou) arriving on market soon This will be high Fe content, which attracts the higher price. Implied will be lower prices than currently




Yes they did. "Our research process is built on observing the key characteristics of a company that our experience indicates will produce strong investment returns."

FMG have Iron Bridge which will be one of the highest FE content in the world when it starts production, and there is the possibility that they can blend the Iron Bridge production with their other ores to upgrade the lower grade ores.

When it comes to diversification, FMG may end up being very successful in their FFI developments and be a diversified materials and energy business, at which point if they started trading at the same PE of the diversified companies their would be a massive share price upgrade, and $40 or $50 per share wouldn’t be out of the question.

 

[Dona Ferentes]

Some " warming the cockles of one's heart " news from my good friends at RenewEconomy on FMG.

Basically Twiggy's green energy Hydrogen targets once thought to be pie in the sky just 12 months ago are now achievable within FFI.

In trading halt.
..... It is thought to be related to further detail and clarification around the hydrogen supply deal announced on Tuesday in Europe.

They have announced plans to supply 5 million tonnes per year of green hydrogen to Europe by 2030 in a partnership with giant European energy retailer E.on.