FMG - Fortescue Ltd

[Value Collector]

Lowest price that I paid was $1.50USD on 11/11/2008

It must feel like winning the lotto every dividend

 

[TimeISmoney]

What did I tell you all about doing business in Africa?

Communities appeal Simandou environmental permits in Guinea Supreme Court​

August 22, 2024

Ghana-based non-profit organization Advocates for Community Alternatives (ACA) said on Thursday that local communities have filed an administrative appeal with the Supreme Court of Guinea to contest the renewal of environmental compliance certificates (ECCs) for the massive Simandou iron ore project.

ACA said communities from the prefectures of Forécariah, Kérouané, Mamou and Kindia are appealing the ECCs granted to Winning Consortium Simandou (WCS), citing “inadequacies in environmental studies and environmental and social oversight, and lack of dissemination of key information.”

​

The project, which has already faced almost 30 years of setbacks, is led by two consortiums: Simfer, a joint venture between Rio Tinto (ASX: RIO) and Chalco, a Chinese aluminum producer; and WCS, which is composed of Hongqiao, China’s largest aluminum producer, in collaboration with Winning International Group, a Singapore-based entity. The Guinean government is also a member of each consortium.
“This action aims to challenge, demand the revision or annulment of permits deemed illegal, and denounce the numerous environmental and social violations associated with the project,” ACA said in a statement.

Located in the forested mountains of the West African nation, Simandou is reportedly the world’s biggest untapped high-grade iron ore deposit. It covers a total area of 1,500 square kilometers where ore will be extracted, processed and then transported by rail to ports.
The project entails the exploitation of 8 billion tonnes in iron ore deposits, with an estimated annual output of 160 million tonnes. A $15 billion investment is planned in the mines, a port and 650-kilometer railway, of which 100 kilometers has been built so far.
Last month, Rio Tinto said the Simandou project, which is expected to start exports in two years, is set to contribute to the world’s decarbonization efforts.

But opponents say the rail line cuts through the country’s endangered species habitats, agricultural lands and protected areas before being exported from a new deep-water port located in an area they say is “key to the local fisheries industry”.
ACA said despite WCS’s promises to minimize negative impacts on the environment and local communities, the project has caused “river pollution, soil erosion, the destruction of habitats for protected species such as chimpanzees, as well as cracks in homes caused by explosions.”
“Moreover, many inhabitants have lost their livelihoods, such as their fields and fishing nets, without receiving adequate compensation. The destruction of mangroves for the construction of port facilities has further exacerbated the negative impacts on local populations,” ACA said.
Set to be the world’s largest and highest-grade new iron ore mine, Simandou would add around 5% to global seaborne supply.

 

[sptrawler]

So what’s looking ahead for fmg ? Will it just go up a few bucks , or power on till Xmas . $98 bucks a ton atm

My guess and only my guess, which often go wrong,is.
China has Australia in a pincer movement, they have screwed over our Nickel and lithium prices, while rubbing soothing oil on our Canbera politicians backs who are loving the BFF narrative.
Meanwhile they are setting us up for the biggest fall of all, they will look to pick up our coal miners, while we have coal on the hate list and then screw down the iron ore price.
Fck knows what happens then. Lol
It's a bit like our critical minerals list, which will support our critical industries, which are also looking very much like our green can dreaming list of non events
.

 

[sptrawler]

What did I tell you all about doing business in Africa?

Communities appeal Simandou environmental permits in Guinea Supreme Court​

August 22, 2024

Ghana-based non-profit organization Advocates for Community Alternatives (ACA) said on Thursday that local communities have filed an administrative appeal with the Supreme Court of Guinea to contest the renewal of environmental compliance certificates (ECCs) for the massive Simandou iron ore project.

ACA said communities from the prefectures of Forécariah, Kérouané, Mamou and Kindia are appealing the ECCs granted to Winning Consortium Simandou (WCS), citing “inadequacies in environmental studies and environmental and social oversight, and lack of dissemination of key information.”

​

The project, which has already faced almost 30 years of setbacks, is led by two consortiums: Simfer, a joint venture between Rio Tinto (ASX: RIO) and Chalco, a Chinese aluminum producer; and WCS, which is composed of Hongqiao, China’s largest aluminum producer, in collaboration with Winning International Group, a Singapore-based entity. The Guinean government is also a member of each consortium.
“This action aims to challenge, demand the revision or annulment of permits deemed illegal, and denounce the numerous environmental and social violations associated with the project,” ACA said in a statement.

Located in the forested mountains of the West African nation, Simandou is reportedly the world’s biggest untapped high-grade iron ore deposit. It covers a total area of 1,500 square kilometers where ore will be extracted, processed and then transported by rail to ports.
The project entails the exploitation of 8 billion tonnes in iron ore deposits, with an estimated annual output of 160 million tonnes. A $15 billion investment is planned in the mines, a port and 650-kilometer railway, of which 100 kilometers has been built so far.
Last month, Rio Tinto said the Simandou project, which is expected to start exports in two years, is set to contribute to the world’s decarbonization efforts.

But opponents say the rail line cuts through the country’s endangered species habitats, agricultural lands and protected areas before being exported from a new deep-water port located in an area they say is “key to the local fisheries industry”.
ACA said despite WCS’s promises to minimize negative impacts on the environment and local communities, the project has caused “river pollution, soil erosion, the destruction of habitats for protected species such as chimpanzees, as well as cracks in homes caused by explosions.”
“Moreover, many inhabitants have lost their livelihoods, such as their fields and fishing nets, without receiving adequate compensation. The destruction of mangroves for the construction of port facilities has further exacerbated the negative impacts on local populations,” ACA said.
Set to be the world’s largest and highest-grade new iron ore mine, Simandou would add around 5% to global seaborne supply.

Just a few million more in bribes, ash tray money, if people remember what that was.

 

[TimeISmoney]

Just a few million more in bribes, ash tray money, if people remember what that was.

I bet it's the start of their problems, they'll have a ton of problems just trying to ship it out of port.

 

[Value Collector]

My guess and only my guess, which often go wrong,is.
China has Australia in a pincer movement, they have screwed over our Nickel and lithium prices, while rubbing soothing oil on our Canbera politicians backs who are loving the BFF narrative.
Meanwhile they are setting us up for the biggest fall of all, they will look to pick up our coal miners, while we have coal on the hate list and then screw down the iron ore price.
Fck knows what happens then. Lol
It's a bit like our critical minerals list, which will support our critical industries, which are also looking very much like our green can dreaming list of non events
.

The problem with the Australian nickle mines is simply that they are high cost producers, that’s it.

There is nothing sinister happening besides bad economics, it’s exactly what our Iron Ore mines have done to Iron Ore miners in the rest of the world.

 

[sptrawler]

I bet it's the start of their problems, they'll have a ton of problems just trying to ship it out of port.

That actually doesn't matter to China, in the scheme of things, that's what investors overlook.
China prints its own money, it isn't floated like ours, so China actually doesn't give a $hit.
All they rely on is us having to buy their junk and as we dont make anything, we don't have many options.
So moving on, they control both input costs of our raw materials and also the cost of what we buy back from them.
So really iron ore port costs is a pizz in a bath in the scheme of things.
We are the ones in deep poo poo, meanwhile we navel gaze about what social issue we should worry about, I think raw materials like iron ore need to looked at as a spec, not as a given.
I think Twiggy and his ex are well aware of that, but that is just my opinion.
Australia is riding a wave of wokeness, where the nervous masses are looking to the rich for guidance, but the rich are riding the property wave, dventually every wave breaks, just ask @IFocus

 

[sptrawler]

The problem with the Australian nickle mines is simply that they are high cost producers, that’s it.

There is nothing sinister happening besides bad economics, it’s exactly what our Iron Ore mines have done to Iron Ore miners in the rest of the world.

You go with that, that's your perogative, everyone who has done well from something, hangs onto to the dream.
Nothing wrong with that, it's human nature, there are just as many who buy into bad outcomes that never buy shates again.
People learn from experience, yours up untill now has been good, but as they say...
Going back to your quote, nickel miners are high cost producers, their input costs are the same as iron ore, the only difference is our iron ore is above ground and easily extractable.
If I was China, I would be funding third world countries to compete against each other, to reduce their cost base.
I wouldn't be worrying about Australia, their cost base is increasing every 6 months with cpi and the Govt keeping wages tracking it, to increase inflation.
Also the advantage is diminishing with every cubic meter removed.
Something has to give, sooner or later.
Appologies if the text is crap, I'm on a wifi hotspot in Tokyo.

 

[Value Collector]

You go with that, that's your perogative, everyone who has done well from something, hangs onto to the dream.
Nothing wrong with that, it's human nature, there are just as many who buy into bad outcomes that never buy shates again.
People learn from experience, yours up untill now has been good, but as they say...
Going back to your quote, nickel miners are high cost producers, their input costs are the same as iron ore, the only difference is our iron ore is above ground and easily extractable.
If I was China, I would be funding third world countries to compete against each other, to reduce their cost base.
I wouldn't be worrying about Australia, their cost base is increasing every 6 months with cpi and the Govt keeping wages tracking it, to increase inflation.
Also the advantage is diminishing with every cubic meter removed.
Something has to give, sooner or later.
Appologies if the text is crap, I'm on a wifi hotspot in Tokyo.

Mining is an Industry where the only real competitive advantage you get is low cost.

High cost producers make a decent return when the price is high but fail when the price is low.

low cost producers make ship loads of money when the price is high but still make a decent amount when the price is low, so they are lower risk.

————————
I didn’t make this stuff up, it’s straight out of Phil Fishers 1958 edition of “Common stocks, Uncommon profits”

I am sorry if the basic economics of mining upsets you, but I have explained this concept multiple times over the years.

BHP knew their Nickle projects were high cost/high risk, but they gambled on high prices continuing, it was a fair bet.

 

[TimeISmoney]

That actually doesn't matter to China, in the scheme of things, that's what investors overlook.
China prints its own money, it isn't floated like ours, so China actually doesn't give a $hit.
All they rely on is us having to buy their junk and as we dont make anything, we don't have many options.
So moving on, they control both input costs of our raw materials and also the cost of what we buy back from them.
So really iron ore port costs is a pizz in a bath in the scheme of things.
We are the ones in deep poo poo, meanwhile we navel gaze about what social issue we should worry about, I think raw materials like iron ore need to looked at as a spec, not as a given.
I think Twiggy and his ex are well aware of that, but that is just my opinion.
Australia is riding a wave of wokeness, where the nervous masses are looking to the rich for guidance, but the rich are riding the property wave, dventually every wave breaks, just ask @IFocus

China needs us more than we need them, One billion people to feed on overpopulated and polluted lands.

Taking advantage of 3rd world countries only goes so far these days or works for so long, a lot of the stuff that happens in these countries never reaches mainstream media.

As history has proven how well did OK Tedi go for BHP?

Australia's mindset shouldn't be us vs them, the big USA isn't going to buy all our stuff or much of what we manufacture for that point, and I can't help if Australia wants to breed pussies that don't want to work hard, I did my part on a wage that barely supported me.

 

[sptrawler]

Mining is an Industry where the only real competitive advantage you get is low cost.

High cost producers make a decent return when the price is high but fail when the price is low.

low cost producers make ship loads of money when the price is high but still make a decent amount when the price is low, so they are lower risk.

————————
I didn’t make this stuff up, it’s straight out of Phil Fishers 1958 edition of “Common stocks, Uncommon profits”

I am sorry if the basic economics of mining upsets you, but I have explained this concept multiple times over the years.

BHP knew their Nickle projects were high cost/high risk, but they gambled on high prices continuing, it was a fair bet.

Well you, unlike me, are the only one that's invested in ithe iron ore forever dream.
So it actually doesn't matter to me really, I buy when when I think there is a profit in mining, I don't buy because I believe there is a never ending profit in it.

I've had a lot of people explain a lot of things to me over the years and not all of them have been correct.
But one thing they all had, was a fanatical belief in themselves, unfortunately I've never had that, I have always taken a conservative path.
Time will tell if it works out for me. Lol
When I sold FMG at about $27 and bought VAS, I thought you mentioned it was the mainstay in your super, so really the long term reality is you feel it is better to spread the risk, but talk up the spec. Lol
By the way if the never ending story of FMG and its Dividsends are so fabulous why not just load your super with them, why bother with VAS ?

 

[Value Collector]

Well you, unlike me, are the only one that's invested in ithe iron ore forever dream.
So it actually doesn't matter to me really, I buy when when I think there is a profit in mining, I don't buy because I believe there is a never ending profit in it.

I've had a lot of people explain a lot of things to me over the years and not all of them have been correct.
But one thing they all had, was a fanatical belief in themselves, unfortunately I've never had that, I have always taken a conservative path.
Time will tell if it works out for me. Lol
When I sold FMG at about $27 and bought VAS, I thought you mentioned it was the mainstay in your super, so really the long term reality is you feel it is better to spread the risk, but talk up the spec. Lol
By the way if the never ending story of FMG and its Dividsends are so fabulous why not just load your super with them, why bother with VAS ?

Yeah VAS and VGS are mainstays for me.

I operate two sides to my portfolio, one side which is strictly dollar cost averaging into the local and global index and a property index every single Thursday on auto payment, where I am happy just to earn the market average return and get to feel like I own a slice of the entire global economy. This is what 99% of people should be doing.

The other side of my portfolio is my more concentrated / focused side where I focus on value investing and try and beat the market average returns of the other side of my portfolio.

———/————-

My comments in the posts above about high cost vs low cost miners are just the way it works, as prices increase the high cost guys will have their profits double, triple or quadruple but the profits evaporate fast as the price falls below their cost of production. So they are much more of a speculation than the low cost guys.

Where as the low cost guys generally continue earning throughout the cycle, they benefit from the high prices, but don’t see the same huge growth in profits.

It’s just the way it is, it’s kinda fundamental to investing in miners. It’s something you have to understand when valuing miners.its why so many small iron ore miners have come and gone.

They start their mine when iron ore is $150, producing at $80 a tonne and make awesome money for 2 years, then collapse when Iron ore hits $60, but FMG with a break even of $30 is still making $15 a tonne at $60, while the high cost guys are dead in the water.

 

[farmerge]

FMG my no 2 pick for the yearly comp.
Still in love with Twiggy and his FMG.
The SP has certainly slid a bit this month, but what goes up or down usually does the reverse.
These big miners are still digging tonnage up and the dividends will still keep coming.
Definitely a hold for me.

 

[TimeISmoney]

Another good day at the races.

 

[farmerge]

Another good day at the races.

View attachment 183167

View attachment 183168

Another good jump from the barrier when the starters pistol went off.

 

[Value Collector]

Another 6 months, and Another solid dividend $0.89 or $1.27 including franking.

Making it an -
8.46 % - return for those who bought at the peak of $30
10.16 % - for those who paid $25
13.50 % - For those who bought at todays price of $18.69
84.60 % - for those that paid $3 who I first recommended the company

Happy investing

 

[basilio]

FORTESCUE | FY24 FULL YEAR RESULTS Page 1 of 6
Net profit after tax of US$5.7 billion and fully franked FY24 total dividends of A$1.97 per share, representing a payout ratio of 70 per cent

Highlights
•
Achieved the lowest ever Total Recordable Injury Frequency Rate (TRIFR) for Metals of 1.3 for the 12 months to 30 June 2024 (FY24), a 28 per cent improvement on 30 June 2023.
•
Strong operating performance, including iron ore shipments of 191.6 million tonnes (Mt), contributed to the third highest earnings in the Company’s history.
•
Underlying EBITDA of US$10.7 billion, seven per cent higher than FY23, with an Underlying EBITDA margin of 59 per cent.
•
Net profit after tax (NPAT) of US$5.7 billion and earnings per share of US$1.85 (A$2.82).
•
Net cash flow from operating activities of US$7.9 billion and free cash flow of US$5.1 billion after investing US$2.9 billion in capital expenditure.
•
Fully franked final dividend of A$0.89 per share, increasing total dividends declared in FY24 to A$1.97 per share, equating to A$6.1 billion and a 70 per cent payout of NPAT.
•
Strong balance sheet with cash of US$4.9 billion and net debt of US$0.5 billion at 30 June 2024. Gross debt to last 12 months EBITDA of 0.5 times and gross gearing of 22 per cent.
•
Decarbonisation progress included construction of a new solar farm, deployment of electric excavators and the development of battery electric and hydrogen fuel cell haul truck prototypes.
•
Fortescue Zero established, significant progress on green technology including first contracts to sell electrolysers and a multi-year deal for battery intelligence software.
•
Arizona Hydrogen and the Gladstone PEM50 Projects achieved Final Investment Decisions in FY24 and the Holmaneset and Pecém green energy projects advanced to the feasibility phase.
•
Total global economic contribution of A$27.5 billion in FY24, including A$6.1 billion in corporate taxes and State royalties.

FY24 Full Year Results (PDF 334.4 KB)

 

[qldfrog]

Fortescue aims to split the bill on hydrogen build

A plan to build an ammonia project in the Norwegian fjords will cost in the “low $US1 billion” range.

www.afr.com

Split the bill with taxpayers, keep the gains.
Probably the reason VC wants more taxes, to pay his fmg dividends
I should not be hypocritical, i currently own some FMG as a trade play, with nice raising SL

 

[Chipp]

Early analyst earnings markdowns already

 

[TimeISmoney]

Fortescue aims to split the bill on hydrogen build

A plan to build an ammonia project in the Norwegian fjords will cost in the “low $US1 billion” range.

www.afr.com

Split the bill with taxpayers, keep the gains.
Probably the reason VC wants more taxes, to pay his fmg dividends
I should not be hypocritical, i currently own some FMG as a trade play, with nice raising SL

Have you got access to the complete article, my paywall bypass doesn't work on afr?