FMG - Fortescue Ltd

[basilio]

I sold 70% of my holdings yesterday. I still believe FMG offers excellent short and long term value. Will buy back in before the next dividend (if Armageddon hasn't knocked the door down ) and hopefully at a couple of dollars discount to yesterdays price.

 

[basilio]

I wonder if there is something brewing at FMG ? Last three days have seen serious buying pressure which has really kicked the SP along. Reached $23.47 this morning. Given the overall dark political environment this seems counter intuitive.

Or maybe war means iron ?

 

[Garpal Gumnut]

I wonder if there is something brewing at FMG ? Last three days have seen serious buying pressure which has really kicked the SP along. Reached $23.47 this morning. Given the overall dark political environment this seems counter intuitive.

Or maybe war means iron ?

The AFR have been running "end of party" columns this week on FMG. There have been some quite indecent salaries and dosomethinganythings paid to insiders and girl/boyfriends of folk at the top of late.

It may have some way to go up as Fe ore is tipped to peak at highs in January 24.

However if ASIC/ASX don't get them the shorters will imo in the new year.

Time to make sure that when the music stops one is not holding the nappy full of sh*t.

And then there is hydrogen LOL .

gg

 

[mullokintyre]

I wonder if there is something brewing at FMG ? Last three days have seen serious buying pressure which has really kicked the SP along. Reached $23.47 this morning. Given the overall dark political environment this seems counter intuitive.

Or maybe war means iron ?

No one ever went broke taking profits, and even fewer manage to sell at the top.
mick

 

[TimeISmoney]

The AFR have been running "end of party" columns this week on FMG. There have been some quite indecent salaries and dosomethinganythings paid to insiders and girl/boyfriends of folk at the top of late.

It may have some way to go up as Fe ore is tipped to peak at highs in January 24.

However if ASIC/ASX don't get them the shorters will imo in the new year.

Time to make sure that when the music stops one is not holding the nappy full of sh*t.

And then there is hydrogen LOL .

gg

If labor stays in they'll most likely penalise anyone that's not moving to net zero carbon in the future, have a look at all the conference talks with these new up and comming lithium mobs, fairies really do exist talk is worth money these days. I also think there's overall confidence in the stock market with the US Fed not rising.

 

[basilio]

The AFR have been running "end of party" columns this week on FMG. There have been some quite indecent salaries and dosomethinganythings paid to insiders and girl/boyfriends of folk at the top of late.

It may have some way to go up as Fe ore is tipped to peak at highs in January 24.

However if ASIC/ASX don't get them the shorters will imo in the new year.

Time to make sure that when the music stops one is not holding the nappy full of sh*t.

And then there is hydrogen LOL .

gg

I don't follow AFR stories. Frankly I don't believe FMG will "collapse" - at least not easily. The ongoing demand for iron ore, the margins they operate at and the financial security of the company will keep them profitable ahead of many competitors.

The renewable energy/hydrogen program will initially result in capital investments which improve the overall profits. We will see what happens with large scale Hydrogen.

I still have confidence in the company. Taking a decent profit off the table now and looking for a cheaper re entry seems like a good idea. It's interesting how ones view for the future can change in a instant when your financial interest is at stake. I'm really hoping for a pull back to $20-21 in the next 2-3 months

 

[Sean K]

LOL

Fortescue had planned to build 340 wind turbines and a solar farm with capacity of up to 5.4 gigawatts supported by battery storage on the Uaroo and Emu Creek cattle stations about 120 kilometres south of Onslow in WA.

Uaroo is one of the cattle stations owned by Andrew and Nicola Forrest’s Harvest Road agribusiness. Fortescue acquired Emu Creek in April last year as part of its ambitious green energy strategy.

The wind and solar farm covering more than 10,000 hectares was set to be connected to Fortescue’s Eliwana mining hub via a transmission line spanning 225 kilometres.

 

[qldfrog]

LOL

View attachment 165268


Fortescue had planned to build 340 wind turbines and a solar farm with capacity of up to 5.4 gigawatts supported by battery storage on the Uaroo and Emu Creek cattle stations about 120 kilometres south of Onslow in WA.

Uaroo is one of the cattle stations owned by Andrew and Nicola Forrest’s Harvest Road agribusiness. Fortescue acquired Emu Creek in April last year as part of its ambitious green energy strategy.

The wind and solar farm covering more than 10,000 hectares was set to be connected to Fortescue’s Eliwana mining hub via a transmission line spanning 225 kilometres.

Mankind, and FMG has better things to do that building useless expensive and earth destroying temple to the new fake god.

 

[dat111]

Plug Power plunges as losses mount, hit by 'unprecedented supply challenges'​

Nov. 09, 2023 4:54 PM ETPlug Power Inc. (PLUG)FSUMFBy: Carl Surran, SA News Editor37 Comments

onurdongel/iStock via Getty Images
Plug Power (NASDAQ:PLUG) -13.3% post-market Thursday after reporting a larger than expected Q3 loss and below-consensus revenues, saying results have been hurt by "unprecedented supply challenges" in the North American hydrogen market.
Plug (PLUG) said its Q3 loss rose to $283.5M, or $0.47/share, from a loss of $170.8M, or $0.30/share, in the year-ago quarter.
Q3 overall gross margin was negative 69%, compared to negative 24% for the year-ago quarter; in the fuel business, Q3 margin rate rose by 21% Q/Q.
Q3 sales by segment: Fuel cell systems, related infrastructure and equipment down 8.1% Y/Y to $145.1M; power purchase agreements more than doubled to $20.1M from $9.52M a year earlier; fuel delivered to customers and related equipment up 56% to $19.4M.
The liquid hydrogen market in North America "has been severely constrained by multiple frequent force majeure events, leading to volume constraints which has delayed Plug's deployments and service margin improvements," the company said.
Plug (PLUG) noted the "unprecedented" number of hydrogen facilities in the market running below nameplate capacity, which has "caused significant hydrogen shortages impacting deployment schedules, fuel prices, shipping efficiencies, service on hydrogen infrastructures, and timing of varied reliability rollout programs."
The company said it will need to tap capital markets to fund its business, as it pursues a number of potential project financing solutions, including corporate debt, loan programs through the Department of Energy, and a memorandum of understanding with Fortescue Metals in which Fortescue (OTCQX:FSUMF) would take a 40% equity stake in Plug's (PLUG) Texas hydrogen plant and for Plug to take up to a 25% equity stake in a Fortescue hydrogen plant.

 

[dat111]

Plug Power plunges as losses mount, hit by 'unprecedented supply challenges'​

Nov. 09, 2023 4:54 PM ETPlug Power Inc. (PLUG)FSUMFBy: Carl Surran, SA News Editor37 Comments
View attachment 165554
onurdongel/iStock via Getty Images
Plug Power (NASDAQ:PLUG) -13.3% post-market Thursday after reporting a larger than expected Q3 loss and below-consensus revenues, saying results have been hurt by "unprecedented supply challenges" in the North American hydrogen market.
Plug (PLUG) said its Q3 loss rose to $283.5M, or $0.47/share, from a loss of $170.8M, or $0.30/share, in the year-ago quarter.
Q3 overall gross margin was negative 69%, compared to negative 24% for the year-ago quarter; in the fuel business, Q3 margin rate rose by 21% Q/Q.
Q3 sales by segment: Fuel cell systems, related infrastructure and equipment down 8.1% Y/Y to $145.1M; power purchase agreements more than doubled to $20.1M from $9.52M a year earlier; fuel delivered to customers and related equipment up 56% to $19.4M.
The liquid hydrogen market in North America "has been severely constrained by multiple frequent force majeure events, leading to volume constraints which has delayed Plug's deployments and service margin improvements," the company said.
Plug (PLUG) noted the "unprecedented" number of hydrogen facilities in the market running below nameplate capacity, which has "caused significant hydrogen shortages impacting deployment schedules, fuel prices, shipping efficiencies, service on hydrogen infrastructures, and timing of varied reliability rollout programs."
The company said it will need to tap capital markets to fund its business, as it pursues a number of potential project financing solutions, including corporate debt, loan programs through the Department of Energy, and a memorandum of understanding with Fortescue Metals in which Fortescue (OTCQX:FSUMF) would take a 40% equity stake in Plug's (PLUG) Texas hydrogen plant and for Plug to take up to a 25% equity stake in a Fortescue hydrogen plant.

Here are some of the comments:



People are tired from the company's management which at this stage, I start to believe, is beyond incompetent to deal with the forthcoming challenges. They didn't manage to render the company attractive from a fundamentals point of view when money was pouring in. Now it's too late. Luckily I maintained only a small position just to be interested in the company and have a stimulus on seeing how it's getting on


Does anyone but me think that this is just a giant money laundering operation? PPLUG doesn't even try to pretend that they are a real business.


The real culprit for these results is the shortage of intellectual capital at the company. Two decades and counting with nothing to show for it but PowerPoints and promises.


Record high number of zombie cos…lots to wipe out


Another Biden success


@PITX3 Thanks Obama, am I right?


Plug needs new management capable of dealing effectively with supply and distribution issues. Multiple poor earnings results and little insight about improving the business.


It seems like the Hydrogen business is still in the very early stages of development, this feels like the solar market 10 years ago. While investing in the future may seem like the best thing, there will be many bumps along the road.

Certainly Canadian Solar ( CSIQ ) has seen many of these cycles but it is now heading towards the sunny (no pun intended) uplands of profitable growth, with a PE under 5 it is a big moment


Never turned a profit since it went public. 23 years. Why start now?


The bubbleness around this company the last few years had been really astonishing. Time to pay the piper


Funny it's called PLUG, and they can't plug all the losses and fails...something is out of the ordinary with this thing, reverse splits, etc


When does this company get SEC investigation, and how much are a few execs getting paid by this place, the few, the ones cashing in nicely ....what a goof. This operation has been going nowhere for decades, paying certain few millions, yeah, of course it's legit, investigate this operation already

They just settled an SEC investigation for cooking the books really cheap:


There's a shortage of Hydrogen in the universe.




funny how the green energy scam gets exposed with higher interest rates


@Golfsohard that is a statement not coherent with investing as it's rather sentimental and ideological and has little to do with reality. Green Energy is not there yet but will eventually come.


Well, it is, and has been for many many years, a scam company.


@Bradley Guichard Governments are funding this company. It will be a savior during WW3.


@Bradley Guichard yeah this place needs SEC looking into, a few execs get hefty pay checks, accomplish nothing...Bernie Madoff managed to hose people for decades..


@CEDUP they prey on people. The only reason I know is because I’ve been watching it for 10+ years. I don’t even know If it’s illegal, but it’s definitely dishonest.


Is $5 good point to close my short position or wait for $4? Feeling greedy but perhaps shouldn't.


Green energy continues to be a disaster and we keep spending our great grandchildrens' money to keep it afloat.


@Big Bad Bulls The problem isn't green energy. It's that this particular* green energy is garbage and always has been. Hydrogen is an energy storage medium--not an energy source--and it's a pretty crap one at that. PLUG is also crap, selling dollar bills for 75 cents for the last decade.


Well Andy, if your run low on excuses, you might try:
1. The sun was in my eyes
2. I stepped on a rock.
3. Somebody called my name....

Powell wants a recession by hook or be crook… only the strong will survive


The article ignores the fact this business just does not make money and losses are just getting bigger, while liabilities just getting larger.
Will the company survive this Eco-woke fantasy?



@outlier1007 - It isn't difficult. I figure out the worst case scenario, and expect PLUG to do worse.

They have proven you right.


@Jack.Bolander you're high on PLUG. Long - right


The lies are getting much worse


@deadhead213 lies are getting more expensive as well.

 

[Value Collector]

Or maybe war means iron ?

It certainly does, checkout out this video, global production of artillery shells will need to be increased for over a decade to rebuild the stockpiles depleted by Ukraine War.

Not to mention all the other weapons, eg J-dams, missiles, Tanks, bullets etc etc etc.

Korea is ramping up its weapons production big time to replace what it has sent to USA/Ukraine.


2.45min mark begins talking about the steel used in manufacturing the rounds.

 

[Value Collector]

LOL

View attachment 165268


Fortescue had planned to build 340 wind turbines and a solar farm with capacity of up to 5.4 gigawatts supported by battery storage on the Uaroo and Emu Creek cattle stations about 120 kilometres south of Onslow in WA.

Uaroo is one of the cattle stations owned by Andrew and Nicola Forrest’s Harvest Road agribusiness. Fortescue acquired Emu Creek in April last year as part of its ambitious green energy strategy.

The wind and solar farm covering more than 10,000 hectares was set to be connected to Fortescue’s Eliwana mining hub via a transmission line spanning 225 kilometres.

They are still planning an energy development on the site, just not exactly the one they put the original development plan in for.

 

[basilio]

They are still planning an energy development on the site, just not exactly the one they put the original development plan in for.

Aha ! So have they outlined what the Plan B will be or that still being worked out ?

I was concerned enough about the story to ring/write to FMG about the apparent cancellation of the project.

Still haven't received any response. Quite disappointed with the communication.

 

[Value Collector]

Aha ! So have they outlined what the Plan B will be or that still being worked out ?

I was concerned enough about the story to ring/write to FMG about the apparent cancellation of the project.

Still haven't received any response. Quite disappointed with the communication.

No, they haven’t announced what the alternative is going to be.

But to keep it in perspective, all the other Pilbara renewable developments attached to the mines are still going ahead, eg their solar systems and transmission links etc.

All that has been cancelled is the huge mega project, which is just one of about 5 they are working towards getting going.

And as I said it’s probably not cancelled forever, they have said their will be an alternative on the site.

 

[basilio]

FMG announced the 5 major hydrogen projects they are developing around the world. The market seems to be enthusiastic about the deal. A key element of the announcement IMV was the $750m capital allowance being made over the next 3 years. Quite modest in the context of the overall finances with FMG. There will be further funds required for Australian projects.

GREEN ENERGY AND GREEN METALS PROJECTS APPROVED
•
Selection process applied by the Board reflects not only commercial criteria but diversity in technology selection and geographical location.
•
Final Investment Decision on two green energy projects and a green metal project.
•
Projects to be fast tracked in Asia-Pacific, Latin America and Europe.
•
Disciplined approach to capital allocation is unchanged.
Fortescue Metals Group Ltd (Fortescue, ASX: FMG) has today announced a significant milestone, with the Board approving a Final Investment Decision (FID) on the Phoenix Hydrogen Hub, USA, the Gladstone PEM50 Project in Queensland, Australia and a Green Iron Trial Commercial Plant in Western Australia (WA). Other projects selected to be fast tracked by the Board are Pecem in Brazil, Project Chui in Kenya and Holmaneset in Norway, representing a geographical and technological diversity to establish a global glide path for Fortescue Energy and its green hydrogen and adjacent technologies and industries to be firmly established. The estimated total investment in the three approved projects is approximately US$750 million over the next three years.

These are three of the first green hydrogen deals ever to be progressed to FID in the United States and Australia, with a pipeline of projects to follow which will significantly scale up Fortescue’s global green energy production, with lessons learnt from these first three projects. They represent the diversity Fortescue’s Board was targeting, which is to prove green hydrogen commercial scale production in the USA, electrolyser capacity, and performance in Queensland and new pure green ironmaking in WA. The Gibson Island Green Hydrogen and Ammonia Project in Queensland is requiring further work as Australia struggles to shed its petrostate status and still suffers structurally high green electricity costs.

Green Energy and Green Metals Projects Approved (PDF 143.4 KB)

 

[basilio]

As VC noted previously FMG has simply switched locations for a proposed solar farm to support its mining operations.

Fortescue applied for vast land tenements in WA Pilbara just after scrapping Uaroo

Fortescue has applied for land tenements spanning 150,000 hectares, an area twice the size of Singapore, to build renewable projects to supply its operations in the Pilbara region of Western Australia.

www.pv-magazine-australia.com

 

[farmerge]

As VC noted previously FMG has simply switched locations for a proposed solar farm to support its mining operations.

Fortescue applied for vast land tenements in WA Pilbara just after scrapping Uaroo

Fortescue has applied for land tenements spanning 150,000 hectares, an area twice the size of Singapore, to build renewable projects to supply its operations in the Pilbara region of Western Australia.

www.pv-magazine-australia.com

Twiggy is not known for doing things in half when twice the size will be the go.

 

[Value Collector]

FMG announced the 5 major hydrogen projects they are developing around the world. The market seems to be enthusiastic about the deal. A key element of the announcement IMV was the $750m capital allowance being made over the next 3 years. Quite modest in the context of the overall finances with FMG. There will be further funds required for Australian projects.

GREEN ENERGY AND GREEN METALS PROJECTS APPROVED
•
Selection process applied by the Board reflects not only commercial criteria but diversity in technology selection and geographical location.
•
Final Investment Decision on two green energy projects and a green metal project.
•
Projects to be fast tracked in Asia-Pacific, Latin America and Europe.
•
Disciplined approach to capital allocation is unchanged.
Fortescue Metals Group Ltd (Fortescue, ASX: FMG) has today announced a significant milestone, with the Board approving a Final Investment Decision (FID) on the Phoenix Hydrogen Hub, USA, the Gladstone PEM50 Project in Queensland, Australia and a Green Iron Trial Commercial Plant in Western Australia (WA). Other projects selected to be fast tracked by the Board are Pecem in Brazil, Project Chui in Kenya and Holmaneset in Norway, representing a geographical and technological diversity to establish a global glide path for Fortescue Energy and its green hydrogen and adjacent technologies and industries to be firmly established. The estimated total investment in the three approved projects is approximately US$750 million over the next three years.

These are three of the first green hydrogen deals ever to be progressed to FID in the United States and Australia, with a pipeline of projects to follow which will significantly scale up Fortescue’s global green energy production, with lessons learnt from these first three projects. They represent the diversity Fortescue’s Board was targeting, which is to prove green hydrogen commercial scale production in the USA, electrolyser capacity, and performance in Queensland and new pure green ironmaking in WA. The Gibson Island Green Hydrogen and Ammonia Project in Queensland is requiring further work as Australia struggles to shed its petrostate status and still suffers structurally high green electricity costs.

View attachment 166000 Green Energy and Green Metals Projects Approved (PDF 143.4 KB)

Also FMG announced the launch of Fortescue Capital. This sounds pretty interesting, it seems to be a vehicle that they will use to bring in outside investors to fund or take ownership interest in some of their projects.

FMG might end up becoming not just an owner and operator, but also a funds manager, a bit like the Canadian infrastructure group Brookfield.

If you are interested check out this video, where the CEO of Brookfield explains how they have earned solid returns of 20% per year for the last 20 years by not just investing in infrastructure projects themselves, but by also bringing in outside investors to co invest, and earnings a management fee on the deals.

 

[System]

On November 28th, 2023, Fortescue Metals Group Ltd changed its name to Fortescue Ltd.

 

[Value Collector]

I just don’t understand why people literally stand back and let
others control their financial situations. I came in on the FMG
show at around $23 there is an $8000 saving / 1000 shares
right there. It’s not about being a smart arse it’s about mitigating risk.

I don’t care if you bought 10000 at $10 bucks sitting on your hands
cost &80k now ____ which could be in your pocket ready to buy perhaps
again or something else.

Hard to swallow.I’d fire any financial guy who sat on his hands!

Well, if you did buy Fmg 2 years ago at $23 and "Sat on your hands" you would have earned a 12% per year in dividend and be sitting on another 12% capital gain, making it about an 18% return per year, Some times it pays (a lot) to sit on your hands.

to be honest I'd fire any financial guy that showed signs of hyperactivity, but I guess we are different people.