FMG - Fortescue Ltd

[farmerge]

Found the information on the larger Twiggy share buys of FMG on the open market. He has regularly bought into the market when he believes it has been badly oversold and represents excellent value.

Contrarian Twiggy tops up on sold-down FMG, sets nickel tongues wagging with Mincor trades

Plus, market’s brutal response to Red 5’s production downgrade ignores the bigger game. It is a good time to be boldly looking beyond the current vapourisation of equity values in response to the coronavirus pandemic to secure what with time, will (hopefully) be seen as astute pick-ups.Mind you...

www.livewiremarkets.com

FMG (ASX) twiggy buys $100m fmg shares

Andrew Forrest's share buying spree fortifies FortescueMICHAEL BENNET From: The Australian September 17, 2011 Andrew Forrest, chairman of Fortescue Metals...

hotcopper.com.au

Andrew Forrest buys up more FMG shares

The value of FMG shares have fallen by around 48 per cent this year, and Andrew ‘Twiggy’ Forrest stepped in

www.australianmining.com.au

Of course when he gets the size dividend cheques then $100 mil is a drop in the ocean.

 

[basilio]

Twiggy learnt th hard way with the failed (I think it was Annaconda) all those years ago. Kept his head down and low profile for some time and popped up with FMG, "the new kid on the block" and now it shows he is thinking far and wide outside of the square.
Only wish I had had the foresight to buy in at 1-2c a share way back then. He was telling all and sundry to get on board for the ride of a lifetime.

Sad indeed... Not being mean here but I came across this story which analysed Twiggys jump into iron ore in 2002 and the value that has accrued since.

At the same time be aware the success of FMG was not a given. There were many huge challenges along the way. It didn't just happen. Hindsight is always so much easier.

Fortescue’s Successor? - Fat Tail Daily

It was the year 2002… But it may as well have been 2022, the similarities are so striking… Any of the following ring any bells?

www.dailyreckoning.com.au

 

[farmerge]

Sad indeed... Not being mean here but I came across this story which analysed Twiggys jump into iron ore in 2002 and the value that has accrued since.

At the same time be aware the success of FMG was not a given. There were many huge challenges along the way. It didn't just happen. Hindsight is always so much easier.

Fortescue’s Successor? - Fat Tail Daily

It was the year 2002… But it may as well have been 2022, the similarities are so striking… Any of the following ring any bells?

www.dailyreckoning.com.au

He cetainly had the bayers of his blood at his heels for some time. Plenty wishing him failure and success.
Ah hindsight, if only it could be bottled and then brought out when needed.

 

[qldfrog]

He cetainly had the bayers of his blood at his heels for some time. Plenty wishing him failure and success.
Ah hindsight, if only it could be bottled and then brought out when needed.

He did a huge huge bet with interest rates as he was well the company was emdebted to the hill..with rates going down down down, it was an amazing success.
Was a gamble, he won, other circumstances would have been a disaster.often the case with mining stocks where he has been outstanding is the management of operational side.obviously,iron ore is as simple as can be in mining as very few post dig processing required, so more a logistic issue but he did very very well
Infrastructure is in place, io price will fall but FMG can still output for decades, this is not coal or copper, as abundant as can be resource.
The real danger for him will be political: taxes, Voice pushed royalties, bad image so his green washing of the FMG name at very limited cost ..I know I am a hater, this type acting to be actually self sufficient instead of talking for a decade about it ....
FMG only other option would be to purchase mines OS and move HQ as well .
Time will tell how it ends.
My experience is that the woke is never satisfied so not sure the greenwash will be enough.
FMG is a good /great business, so what is the good SP.
I had a good entry but my entry sl exited in the same week and I never reentered again.not in position to do it now anyway and not one I would do for a short medium term stable investment

 

[basilio]

He did a huge huge bet with interest rates as he was well the company was emdebted to the hill..with rates going down down down, it was an amazing success.
Was a gamble, he won, other circumstances would have been a disaster.often the case with mining stocks where he has been outstanding is the management of operational side.obviously,iron ore is as simple as can be in mining as very few post dig processing required, so more a logistic issue but he did very very well
Infrastructure is in place, io price will fall but FMG can still output for decades, this is not coal or copper, as abundant as can be resource.
The real danger for him will be political: taxes, Voice pushed royalties, bad image so his green washing of the FMG name at very limited cost ..I know I am a hater, this type acting to be actually self sufficient instead of talking for a decade about it ....
FMG only other option would be to purchase mines OS and move HQ as well .
Time will tell how it ends.
My experience is that the woke is never satisfied so not sure the greenwash will be enough.
FMG is a good /great business, so what is the good SP.
I had a good entry but my entry sl exited in the same week and I never reentered again.not in position to do it now anyway and not one I would do for a short medium term stable investment

That's a fair summation.. in part. From a basic iron ore operational POV I believe FMG will stay profitable for a long time. The renewable energy investment to date has already paid dividends in terms of reducing ongoing operational costs for the iron ore business. These savings will continue indefinitely , go to the bottom line and make FMG even more competitive.

I fundamentally disagree however with your take on the bigger renewable energy projects. I think the judgement call by Twiggy that this is the urgent direction of the future is correct. We will have to wait and see how much operational and financial success this creates for FMG. Objectively I can't see how the energy play will have the sort of huge margins the iron ore business has developed. But that doesn't mean it can't be successful and turn a decent financial result.

As far as criticism from the "woke" ? Again for a start I totally reject that label . Recognising the reality of global warming as well as the intrinsic merit of having a clean renewable energy system is simply good economic/environmental sense and the recognition that global warming has to be dealt with.

But that is not news to you Qfrog. You have made it very clear that on a personal level you see a clean, independent , renewable energy supply as very important to your future. That same decison has been made by many other posters on this forum (myself included) .

 

[Value Collector]

That's a fair summation.. in part. From a basic iron ore operational POV I believe FMG will stay profitable for a long time. The renewable energy investment to date has already paid dividends in terms of reducing ongoing operational costs for the iron ore business. These savings will continue indefinitely , go to the bottom line and make FMG even more competitive.

I fundamentally disagree however with your take on the bigger renewable energy projects. I think the judgement call by Twiggy that this is the urgent direction of the future is correct. We will have to wait and see how much operational and financial success this creates for FMG. Objectively I can't see how the energy play will have the sort of huge margins the iron ore business has developed. But that doesn't mean it can't be successful and turn a decent financial result.

As far as criticism from the "woke" ? Again for a start I totally reject that label . Recognising the reality of global warming as well as the intrinsic merit of having a clean renewable energy system is simply good economic/environmental sense and the recognition that global warming has to be dealt with.

But that is not news to you Qfrog. You have made it very clear that on a personal level you see a clean, independent energy supply as very important to your future. That same decison has been made by many other posters on this forum (myself included) .

I agree the energy projects won’t earn the same margins as Iron Ore, but we really don’t need them to, you can build a fabulous energy business with 15% return on capital, especially if 70% of that capital is coming from long term 8% Bonds, leaving the rest of the profit margin to the equity holders.

 

[TimeISmoney]

The issue is that other iron ore miners have the same problem as Twiggy with the ever high price of fossil energy costs, at least Twiggy is moving early to address this issue. Fortescue is trying to develop hydrogen producing cells to bring the cost down and be green friendly, If he can do this right he will move forwards in leaps and bounds, another initiative is that he has made a gravity fed magnetite slurry piping system to cut the cost of transporting the product from the mine site to the port and reducing the carbon footprint. I'm a bit skeptical ATM but it is a stock to watch.

 

[rcw1]

Good morning
It has been reported today (21/06/23) via New Corp News:

Andrew Forrest will transfer almost $5bn worth of Fortescue Metals Group shares to his philanthropic arm, Minderoo Foundation, in what is believed to be the biggest donation in Australian history.

The transfer, announced late on Tuesday, of one-fifth of the Fortescue shares owned by Dr Forrest and his wife, Nicola, will leave Minderoo with firepower to continue its extensive charitable endeavours far into the future. The donation takes Minderoo’s total endowment to about $7.6bn.

 

[Dona Ferentes]

Nice tax deduction

 

[Value Collector]

Nice tax deduction

I find it annoying when people say things like that when people make charitable donations, it’s like they are trying to down play a persons gift.

It also gives some people that don’t understand money the idea that people make profits from such donations.

———————
I gave a sizeable donation to a charity, and a family member said-

“But you would have claimed that on your tax right, so you got all the money back”

No, that’s not how it works, if you give $100 to charity, you don’t get the full $100 back on your tax, you just don’t have to pay tax on that $100, if you have already paid $30 tax on you will get the $30 back.

But in the case of Andrew Forrest, he hasn’t paid any tax on the capital value of those $5 Billion in shares yet because he hasn’t sold them. He might be able to claim a deduction for the cost he original paid for the shares, if he used after tax dollars to buy them originally, but it is a super sized gift, not something to be written off as just a guy getting a tax deduction.

 

[basilio]

It's a lot of extra money to go to the Minderoo Foundation. The dividends from the shares( 220m) will be worth around $400-500 m a year Some serious philanthropic opportunities.

The Minderoo Foundation already has sponsored some outstanding work. Twiggy is generous but not stupid.

Minderoo Foundation

www.minderoo.org

 

[Value Collector]

It's a lot of extra money to go to the Minderoo Foundation. The dividends from the shares( 220m) will be worth around $400-500 m a year Some serious philanthropic opportunities.

The Minderoo Foundation already has sponsored some outstanding work. Twiggy is generous but not stupid.

Minderoo Foundation

www.minderoo.org

Capitalism gets a lot of trash talked about it, but this is capitalism at its Best, I think Andrew seeded FMG with about $4 Million, but over the last 20 years FMg has -

Created 1,000’s of High paying jobs.
Paid Billions of $$$ in Royalties
Paid Billions in company Taxes
Supplied Millions of tonnes of ore to customers
Paid Millions of $$$ in Interest to debt investors
Paid Billions of $$$ in dividends to investors

And created a huge capital value that Andrew is distributing to charitable causes.

Not to mention the retained earnings being diverted to try and solve climate change.

It does make me proud to be a “Card Carrying Capitalist”, there is a lot of benefits to good old capitalism.

 

[TimeISmoney]

Capitalism gets a lot of trash talked about it, but this is capitalism at its Best, I think Andrew seeded FMG with about $4 Million, but over the last 20 years FMg has -

Created 1,000’s of High paying jobs.
Paid Billions of $$$ in Royalties
Paid Billions in company Taxes
Supplied Millions of tonnes of ore to customers
Paid Millions of $$$ in Interest to debt investors
Paid Billions of $$$ in dividends to investors

And created a huge capital value that Andrew is distributing to charitable causes.

Not to mention the retained earnings being diverted to try and solve climate change.

It does make me proud to be a “Card Carrying Capitalist”, there is a lot of benefits to good old capitalism.

It's always the 'have nots' complaining, the same people that don't want to work towards any goal and sit on their phones all day and complain about how wrong the rest of the world is while they contribute very little to it.

 

[sptrawler]

It's always the 'have nots' complaining, the same people that don't want to work towards any goal and sit on their phones all day and complain about how wrong the rest of the world is while they contribute very little to it.

Talking like that in today's world, will see you taken out the back and thrashed. ?
They're special and can't find any work, that's why we have to bring in 500,000 immigrants and their families every year, to do the work our unemployed can't find.
You need to get on the programme @TimeISmoney before you are cancelled

 

[basilio]

CEO Fiona Kicks made a presentation the World Mining Congress on 28th June.
Worth a read. Highlights included
1) The success to date of the Iron Ridge Magnetite project. Implications for green steel.
2) The beginning of iron ore movement in Gabon with the Belinga project.
3) The role of FMG in creating job opportunities for First Nations Australians in their mining operations.
4) The progress they are making in decarbonising their industry. They have machinery in operation and are testing them to iron out any bugs.

World Mining Congress speech | Fortescue Metals Group Ltd

www.fmgl.com.au

 

[sptrawler]

Andrew Twiggy Forrest and Nicola Forrest separation: Mining couple announce split

amp.9news.com.au

 

[mullokintyre]

Andrew Twiggy Forrest and Nicola Forrest separation: Mining couple announce split

amp.9news.com.au

Market thinks its a good outcome, up 1% this morning.
Perhaps they think he can now focus more on his job.
He may have less spare cash to splash around on things however.
Mick

 

[farmerge]

Market thinks its a good outcome, up 1% this morning.
Perhaps they think he can now focus more on his job.
He may have less spare cash to splash around on things however.
Mick

What's the loss of the odd billion or two??

 

[mullokintyre]

What's the loss of the odd billion or two??

Dunno,, never been in that sort of mulah.
mick

 

[farmerge]

Dunno,, never been in that sort of mulah.
mick

I've given up trying for the first billion but am now working towards the second lot !!!!