FMG - Fortescue Ltd

[agro]

20/05/2008 9:49AM 2 App 3Y - Change of Directors Interest

one of the directors must have transferred a quanity in to a fund of some description

 

[Frankhalo]

Yeah, into their bank account Agro, why not he / she owns 6 million + shares, selling 250k odd and enjoying it....

 

[renim]

I have'nt looked at their resource map closely, but its Pilbara, they have a lot of holding, I won't be worrying about tonnage (I may worry about grade, but at the moment tonnes are king)

Originally they were to be about a 50Mtpa operation (limited by port stock yard) but BHP blocked their preferred location forcing FMG further inland and needing to build a capital intensive conveyor. One side effect was that FMG now sits on a port yard that can grow to 200mtpA, someone at BHP will be rueing that obstructionist decision. This would have influenced their design from the start.

FMG need to move 2mt over a 4 week period before their bond caveats allow them to start the next expansion. Thats a 52mtpA rate. FMG will gun for this as soon as possible.

As a private, non competition authority constrained, not government funded, not PPP funded, FMG has the luxury of being able to design for future growth. Remember virtually all of Mr Forrests money is tied in this one company, he will be aiming to maximise it for both the short haul and the long haul. This might be called 'gold plating' the design for throughput.

They will have a cost for the break between expansion, whether short or long time break, people leave etc. If they can start the expansion very soon, then they may have some opportunity for saving.

As I alluded to before, 50mtpA is a giant starting rate, it probably took decades for Rio or Bhp to achieve that (don't believe me, go to BHPs iron ore history site). The investment community in this country don't have a historical equivalent in living memory for this type of start-up.

I haven't seen their future ramp up plan, I would find it interesting.

Port works are expensive,
additional locos, surface miners, truck etc are not expensive.

yeah I bet most of the directors have already 90% of their money is in FMG, If they want to play a little, they may need to sell some.

 

[Lukeyz]

Yeah, into their bank account Agro, why not he / she owns 6 million + shares, selling 250k odd and enjoying it....

Maybe they wanted to get a Import Luxury Car before the taxes go up on them.. If I had that many FMG shares, the first shipment would be enough of an excuse for me to splurge.. my

 

[Duckman#72]

Big swings today - low of $8.91 and high of $9.70 (which it closed at).

The big $10.00 hurdle is inching closer.

Duckman

 

[michael_selway]

Big swings today - low of $8.91 and high of $9.70 (which it closed at).

The big $10.00 hurdle is inching closer.

Duckman

Hm they raised forecasts yet again!

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -2.6 -31.5 38.6 99.3
DPS 0.0 0.0 0.0 0.0

Date: 16/5/2008
Author: Julie-Anne Sprague; Michael Vaughan
Source: The Australian Financial Review --- Page: 1/57
A number of leading businesspeople and politicians celebrated a milestone withAndrew Forrest on 15 May 2008 in Western Australia (WA). The CEO of iron oremining company Fortescue Metals Group was officially starting the loading ofiron ore from the $A2.8bn mine it has built along with rail and port facilitiesin the Pilbara region of WA. There had been many doubters of the project, butForrest has been vindicated by a massive boost to Fortescue's share price,in the process also becoming Australia's richest man. On the day, the stockclosed $A0.11 lower at $A9.24. Forrest admits readily that his track record inthe resources sector also shows some spectacular failures. He is not averse toChinese investment in Fortescue, and is donating the money from the sale of thefirst 5,000 tonnes of ore, to earthquake victims in that country

thx

MS

 

[renim]

my maths is not so good. 2mt over 4 weeks is only 26mtpA.

are FMG sharing shipping costs?

are they paying premium shipping cause of BHP booking up everyone?

what happens when oil hits $200

 

[njc.corp]

Big swings today - low of $8.91 and high of $9.70 (which it closed at).

The big $10.00 hurdle is inching closer.

Duckman

correct what a dog of a start and early morning trading -i saw it again as more of a buying day-

when $10.00 come's- that will be a good day- is it me or does this stock regain well after a couple of bad day's- thats what i have notice

Anyone?

 

[agro]

Irons in the fire: Sinosteel says it's still interested in Fortescue Metals



Kevin Andrusiak | May 23, 2008

CHINESE steel giant Sinosteel is again stoking the fires for a potential run at Fortescue Metals Group.

Company chairman Huang Tianwen was reported as saying yesterday that Sinosteel had kept Fortescue on its radar and would not reject the idea of buying shares in the iron ore upstart.

Fortescue last week broke the BHP-Rio iron ore duopoly in the Pilbara with the first shipment of ore from its Cloud Break operations in the West Australian Pilbara.

"We're not ruling out the possibility of buying shares in Fortescue Metals Group," Mr Huang said when reporters asked whether Sinosteel was interested in Fortescue.

Shares in Fortescue, which had been trading down before Mr Huang's comments, closed 46c higher at a record high of $9.70.

The share surge pushed company founder Andrew Forrest's personal fortune to within a whisker of $10 billion.

Mr Huang said Sinosteel would not participate in a multi-party raid on BHP Billiton's share register by Chinese companies.

It has been rumoured that China is preparing to take a strategic stake in BHP in a bid to gain leverage in BHP's takeover bid for Rio Tinto.

Austock, one of the few broking firms without conflicts of interest in relation to the bid, said this week that it believed BHP was about 20 per cent away from a successful result.

Analysts Hunter Hillcoat and Tim Gerrard said in a note to clients that a BHP takeover of Rio would establish a platform to "transform the way in which investors view the resources sector".

The pair even floated the idea that a combined BHP and Rio could then make a play for an oil major.

"We suspect one of the drivers behind the BHP Billiton bid for Rio is to be better positioned to grow significantly in the oil and gas sector," Austock analysts said.

"The merged group would be well-positioned in the thermal coal and uranium energy sectors with a reasonable, but relatively modest, exposure to oil and gas and LNG in the absence of any further acquisitions.

"BHP is intent on getting the message across to investors that it is already a metal, minerals and energy diversified company and it is looking to aggressively grow the oil and gas side of the business.

"This may have massive implications for the future strategies of Exxon Mobil, BP, Shell, Total.

"Interestingly, Rusal and Norilsk appear to be embarking along the same path as BHP as they plan to add oil and gas to their aluminium and nickel businesses."
Story Tools

http://www.theaustralian.news.com.au/story /0,25197,23743475-5005200,00.html

 

[Prospector]

I just posted this on the FDL thread, but I was flying to Hong Kong yesterday and presumed because of the fall in the US the night before, I would have lost some serious money. Thanks to FMG and FDL, well, tonight will be champagne for me - unless it all comes apart today. So, is this because of the increase in production or the rumours of Chinese interest? Again. At this rate I might even have a look in at the Annual Share competition.

 

[agro]

I just posted this on the FDL thread, but I was flying to Hong Kong yesterday and presumed because of the fall in the US the night before, I would have lost some serious money. Thanks to FMG and FDL, well, tonight will be champagne for me - unless it all comes apart today. So, is this because of the increase in production or the rumours of Chinese interest? Again. At this rate I might even have a look in at the Annual Share competition.

like wise i might crack open a bottle if it hits $10

sure packer and twiggy both happy

and the chinese,, well they know where to put their money

 

[Nesa]

like wise i might crack open a bottle if it hits $10

sure packer and twiggy both happy

and the chinese,, well they know where to put their money

It came very close today. 2 cents short. maybe it will happen next week

very late fade though...

 

[agro]

should see $10 today

up on strong volume backed by the construction report (not that anything has changed)

would have thought by now that the ship is in China..

should hear an ann too

 

[alwaysactive]

Simple question. Why would you sell today?
10 bucks plus any day now... surely.
..................................................................
FMG news -

A Chinese steel company has confirmed its intention to buy at least a $2.2 billion stake in burgeoning miner Fortescue Metals Group.

Sinosteel, the steel trading giant, told the Australian Financial Review it was in discussions with US hedge fund Harbinger Capital Partners about acquiring half of its 16% stake in Australian miner.

Sinosteel Australia deputy general manager William Ren said the company would prefer to buy Harbinger's entire $4.4 billion stake but the fund would sell only half, the paper said.

cheers.

 

[agro]

Simple question. Why would you sell today?
10 bucks plus any day now... surely.
..................................................................
FMG news -

A Chinese steel company has confirmed its intention to buy at least a $2.2 billion stake in burgeoning miner Fortescue Metals Group.

Sinosteel, the steel trading giant, told the Australian Financial Review it was in discussions with US hedge fund Harbinger Capital Partners about acquiring half of its 16% stake in Australian miner.

Sinosteel Australia deputy general manager William Ren said the company would prefer to buy Harbinger's entire $4.4 billion stake but the fund would sell only half, the paper said.

cheers.

Sinosteel plans $2.2b Fortescue stake

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* Chris Zappone
* May 26, 2008 - 4:24PM
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Chinese steel company Sinosteel is eyeing at least a $2.2 billion stake in burgeoning miner Fortescue Metals Group.

Sinosteel, the steel trading giant, told the Australian Financial Review it was in discussions with US hedge fund Harbinger Capital Partners about acquiring half of its 16% stake in the Australian miner.

Sinosteel Australia deputy general manager William Ren said the company would prefer to buy Harbinger's entire $4.4 billion stake but the fund would sell only half, the paper said.

Fortescue shares ended the day 34 cents, or 3.6%, higher at the new closing high of $9.90, valuing the company at more than $28 billion.

Chinese steelmakers have been anxious to acquire stakes in Australian resources companies in order to secure the materials needed to sustain the nation's rapid industrialisation and growth.

In January Chinese aluminium company Chinalco partnered with Alcoa to take a 12% stake in Rio Tinto worth about $15 billion. Rumours persist the Chinese will make a play for a stake in Rio's larger rival BHP Billiton as well.

Fortescue, which has contracts to supply ore with ten major Chinese steelmakers, has been viewed as a potential acquisition target by the Chinese since the company's founding three years ago.

The Perth company loaded its first shipment of iron ore on schedule in West Australia two weeks ago, making good on a deadline promised by chief Andrew Forrest. Fortescue, which has extensive reserves in the Pilbara, is the third-largest Australian supplier of ore to China.

Sinosteel had made a previous play for Fortescue in 2007, but the deal fell apart over price issues, according to the AFR, but Fortescue's success in making its first shipment has triggered Sinosteel to take another look at the mining company.

Fellow Chinese miners Chinalco and Baosteel have also reportedly been linked to discussion with Harbringer over a stake in Fortescue.

Resources analyst Ben Kakoschke at Tolhurst said foreign investment by a strategic shareholder like Sinosteel would likely boost Fortescue's stock in the near term. Shares in the resources company neared Friday's highs on excitement about a potential deal, rising 2.4%, or 23 cents, to $9.79 in afternoon trade.

Mr Kakoschke has a price target of $7 a share on Fortescue. He said the stock is already overvalued based on fundamentals.

Fortescue's first shipment of ore was a "fantastic milestone for the company but largely factored in by the market."

"Now the challenge is to demonstrate reliable ore production and shipping at high volumes," he said.

An eventual Chinese bid for Fortescue is unlikely to ignite the firestorm over national interest issues as BHP or Rio, Mr Kakoschke said, in part because Fortescue's stock is not as widely held.

Also the mining company has grown through significant US investment and Chinese off-take agreements, which gives it a different image among investors than BHP or Rio, which are seen as cornerstones to the Australian sharemarket.

 

[agro]

hit new high of $10.15 today

congratulations all who hold.. patience has paid off

now wait for the next big ann to come

 

[njc.corp]

hit new high of $10.15 today

congratulations all who hold.. patience has paid off

now wait for the next big ann to come

My target was met and i lefted-this has been such a good stock to me-

i like to see who hold's do well has sky's the limit with this stock-

good luck to everyone-

Thanks

Nick--

 

[awg]

this stock is replete with money making opportunities.

quite volatile for the day trader, which is were it was with me

Radge recomended shorting it a while back, even in his free teaser ( was a good call)

I have recently upgraded it to my medium term hold category buying at $9.30, and widening my trailing stop.

seems everyone wants a piece of it, I think the big buyers cant ignore it


tony

 

[gav]

FMG was my first ever trade. Bought at $9.30, 15 days ago (or 11 trading days). At close today I'm up 13.87%, which for me works out to be almost an entire weeks wage

 

[bergers_n_fries]

FMG was my first ever trade. Bought at $9.30, 15 days ago (or 11 trading days). At close today I'm up 13.87%, which for me works out to be almost an entire weeks wage

well done...i hate you

hopefully this levels off soon enough so i can chuck in a few quid if need be...seems a goer