Australian (ASX) Stock Market Forum

FMG - Fortescue Ltd

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Ooops, forgot to attach this screen shot to my last post @sptrawler

IMG_2735.jpeg
 
TimeISmoney said:
The licenced capacity at Herb Eliot Port for FMG is 210 MTPA
Click to expand...
That is significant isn't it ? Seems to put an upper limit on iron ore exports very close to current output. Still be interesting know if the Iron Bridge exports are included in the overall guidance. It could be as low as 190 tones all up or 209 tons if they are separate figures.
 
basilio said:
That is significant isn't it ? Seems to put an upper limit on iron ore exports very close to current output. Still be interesting know if the Iron Bridge exports are included in the overall guidance. It could be as low as 190 tones all up or 209 tons if they are separate figures.
Click to expand...
I'd say it would be inclusive because they can't export over that amount and it's all ending up in Port Hedland.
 
basilio said:
I'm wondering if the Iron Bridge concentratae is included in the total iron ore shipments ? Or a separate item ?
Click to expand...
Yep, it’ is.

So the Iron Bridge concentrate is higher cost per tonne than the regular direct shipping ore, however it also sells at a higher price.

Where their direct shipping Ore sells at about a 15% discount to stated Iron Ore bench mark price, the Iron Bridge product sells at a 15% - 20% premium.

So due to the premium more than offsetting the higher costs, and the smaller volumes, I just ignore it and treat it all as direct shipping Ore in my calculation.
 
basilio said:
That is significant isn't it ? Seems to put an upper limit on iron ore exports very close to current output. Still be interesting know if the Iron Bridge exports are included in the overall guidance. It could be as low as 190 tones all up or 209 tons if they are separate figures.
Click to expand...
FMG’s production guidance includes their share of the Iron Bridge output (61%), but not the 31% owned by their partner in the project Formosa.

The 31% owned by Formosa, isn’t in FMG’s guidance, however it does move through FMG’s port and FMG does earn a handling fee on it.

I am unsure if the Formosa portion of the ore is exported using FMG’s licence or their own, but either way as FMG has raised production over time they haven’t had any trouble raising their export capacity licence. I think the real bottle neck would be how many ships they can physically load each year. The have 5 berths to park ships, and 3 ship loaders moving between them,

In a perfect world of zero down time, the ship loaders would be able load 260 Million tonnes a year, but in practice with actual maintenance down time and shift changes and cyclones etc, I don’t know how much the actual maximum export rate is of the port.
 
@basilio @TimeISmoney

Here is some photos of FMGs port.

In the first photo you can see 5 ships parked, arrows point to the ship loaders that roll on tracks up and down beside the ships. The two ships on the left side of the port are serviced by one ship loader, and the three ships on the right are serviced by two loaders.

In the second photo you can see I zoomed in on one of the ship loaders that is loading a ship.

The third and forth photo show a different angle of the port and ship loader.

IMG_2744.jpeg
IMG_2745.jpeg
IMG_2746.jpeg
IMG_2747.jpeg
 
FMG is slowly finding its natural SP, it definitely poses a lot of risk holding in these times but 'Risk' is our middles names. ;)

3.4 x buyers than sellers, I can see the SP sneeking up a bit over the next few months unless we hear some bad news at the next AMG.

1726722736621.png
 
25 September 2024
FORTESCUE SIGNS US$2.8 BILLION GREEN EQUIPMENT PARTNERSHIP WITH LIEBHERR
FOR ZERO EMISSION MINING SOLUTIONS
Fortescue Ltd (Fortescue, ASX: FMG) today announced a significant expansion of its partnership
with global equipment manufacturer Liebherr, to jointly develop and validate a range of zero
emission mining solutions. It builds on the partnership established in June 2022 and increases the
total number of machines to be supplied by Liebherr to approximately 475. The equipment will be
powered by the battery power system developed by Fortescue Zero. Liebherr and Fortescue will
also deploy an autonomous battery electric haulage solution for large scale mining operations.
The partnership is expected to create one of the world's largest zero emission mining fleets and
represents a major breakthrough in the pursuit of a mining industry no longer reliant on fossil fuels.
It demonstrates tangible progress towards transitioning Fortescue’s diesel mining fleet to a zero
emission fleet, aligned with the Company’s target to achieve Real Zero Scope 1 and 2 emissions
across its Australian terrestrial iron ore operations by 2030.
Expanding on the partnership announced in June 2022, it increases the mining fleet to be supplied
by Liebherr from 120 haul trucks to approximately 475 zero emission machines. Fortescue is
anticipated to purchase approximately 360 autonomous battery electric trucks, 55 electric
excavators and 60 battery powered dozers. This represents about two thirds of the current mining
fleet at Fortescue’s operations. Fortescue’s mining fleet consumed approximately 450 million litres
of diesel in FY24 and accounted for 51 per cent of its Scope 1 emissions.
The phased supply of the equipment commenced in October 2023 and it is planned to be complete
by 2030. Delivery of the fleet is aligned with Fortescue's fleet replacement cycle and sustaining
capital expenditure and decarbonisation capital expenditure forecast. The total value of the
partnership, comprising the supply of machines by Liebherr and the battery power system from
Fortescue Zero, is up to US$2.8 billion. This is the single largest equipment deal in Europe’s highly
successful manufacturing and technology company Liebherr’s 75 year history and is Fortescue’s
single largest ever contract in its history.
Fortescue Executive Chairman, Dr Andrew Forrest AO said, “Partnerships with companies and
people like Liebherr and Willi Liebherr – where ambition is backed by action – are critical.
“This is an important next step in our 2030 Real Zero target – to eliminate emissions from our
Australian terrestrial iron ore operations by the end of the decade. The world needs Real Zero now
– it simply cannot afford to wait. The green solutions we need are here today, and Fortescue Zero
is supplying them and rolling them out across our massive mining operations. Fortescue Zero
developed this battery technology and jointly developed the Automated Haulage Solution, leading
the way to provide green innovative solutions to eliminate emissions from heavy industry.
“We invite all companies in the mining, heavy industry and haulage sectors to join us. The solutions
are there, and the missing ingredient is leadership. The time of others persuading you that
greenwashing is a better return to shareholders and your community is over. Fortescue invites you
to join us. We can together be the trailblazers who forge the world's move away from fossil fuels.
 
eskys said:
25 September 2024
FORTESCUE SIGNS US$2.8 BILLION GREEN EQUIPMENT PARTNERSHIP WITH LIEBHERR
FOR ZERO EMISSION MINING SOLUTIONS
Fortescue Ltd (Fortescue, ASX: FMG) today announced a significant expansion of its partnership
with global equipment manufacturer Liebherr, to jointly develop and validate a range of zero
emission mining solutions. It builds on the partnership established in June 2022 and increases the
total number of machines to be supplied by Liebherr to approximately 475. The equipment will be
powered by the battery power system developed by Fortescue Zero. Liebherr and Fortescue will
also deploy an autonomous battery electric haulage solution for large scale mining operations.
The partnership is expected to create one of the world's largest zero emission mining fleets and
represents a major breakthrough in the pursuit of a mining industry no longer reliant on fossil fuels.
It demonstrates tangible progress towards transitioning Fortescue’s diesel mining fleet to a zero
emission fleet, aligned with the Company’s target to achieve Real Zero Scope 1 and 2 emissions
across its Australian terrestrial iron ore operations by 2030.
Expanding on the partnership announced in June 2022, it increases the mining fleet to be supplied
by Liebherr from 120 haul trucks to approximately 475 zero emission machines. Fortescue is
anticipated to purchase approximately 360 autonomous battery electric trucks, 55 electric
excavators and 60 battery powered dozers. This represents about two thirds of the current mining
fleet at Fortescue’s operations. Fortescue’s mining fleet consumed approximately 450 million litres
of diesel in FY24 and accounted for 51 per cent of its Scope 1 emissions.
The phased supply of the equipment commenced in October 2023 and it is planned to be complete
by 2030. Delivery of the fleet is aligned with Fortescue's fleet replacement cycle and sustaining
capital expenditure and decarbonisation capital expenditure forecast. The total value of the
partnership, comprising the supply of machines by Liebherr and the battery power system from
Fortescue Zero, is up to US$2.8 billion. This is the single largest equipment deal in Europe’s highly
successful manufacturing and technology company Liebherr’s 75 year history and is Fortescue’s
single largest ever contract in its history.
Fortescue Executive Chairman, Dr Andrew Forrest AO said, “Partnerships with companies and
people like Liebherr and Willi Liebherr – where ambition is backed by action – are critical.
“This is an important next step in our 2030 Real Zero target – to eliminate emissions from our
Australian terrestrial iron ore operations by the end of the decade. The world needs Real Zero now
– it simply cannot afford to wait. The green solutions we need are here today, and Fortescue Zero
is supplying them and rolling them out across our massive mining operations. Fortescue Zero
developed this battery technology and jointly developed the Automated Haulage Solution, leading
the way to provide green innovative solutions to eliminate emissions from heavy industry.
“We invite all companies in the mining, heavy industry and haulage sectors to join us. The solutions
are there, and the missing ingredient is leadership. The time of others persuading you that
greenwashing is a better return to shareholders and your community is over. Fortescue invites you
to join us. We can together be the trailblazers who forge the world's move away from fossil fuels.
Click to expand...
It's an excellent story for Fortescue. The cost effective decarbonisation of their mining operations is the clearest best value investment they can make (in the energy cost field) . Each electric truck/dozer/excavater they have reduces their operating costs and (hopefully) adds a profit from the joint partnership with Liebherr. Given the uptake will be phased in to current replacement cycles there should be no real additional expenditure.

This announcement however is also a sell job to other mining companies. Considering there is a financial partnership between FMG and Liebherr the overall success of rapid decarbonistaion in the industry should add to FMG bottom line.
 
Last edited:
basilio said:
It's an excellent story for Fortescue. The cost effective decarbonisation of their mining operations is the clearest best value investment they can make (in the energy cost field) . Each electric truck/dozer/excavater they have reduces their operating costs and (hopefully) adds a profit from the joint partnership with Liebherr. Given the uptake will be phased in to current replacement cycles there should be no real additional expenditure.

This announcement however is also a sell job to other mining companies. Considering there is a financial partnership between FMG and Liebherr the overall success of rapid decarbonistaion in the industry should add to FMG bottom line.
Click to expand...
Sooner or later every mining company in Australia will need to cut back on fossil fuels whether investors like it or not, but Twiggy is way ahead of the field. I personally think that it will reap rewards in the future but not the instant success many want to see, but contrary to what many may believe the company has a bright future if it stays on the right path. Twiggy didn't get to where he stands now by making tons of mistakes.
 
TimeISmoney said:
Sooner or later every mining company in Australia will need to cut back on fossil fuels whether investors like it or not, but Twiggy is way ahead of the field. I personally think that it will reap rewards in the future but not the instant success many want to see, but contrary to what many may believe the company has a bright future if it stays on the right path. Twiggy didn't get to where he stands now by making tons of mistakes.
Click to expand...
BHP is also moving in the direction albeit slower, and using a third party (APA Group) to supply the capital, obviously this leaves profit margin at APA group.

But that’s one of the difference’s with BHP vs FMG, FMG deploys capital in a much more vertically integrated manner, than BHP for example FMG owns some of its own ships, where BHP doesn’t.

 
FMG my No 2 pick in the Comp.
SP has improved recently which is god news.
We watched Twiggy unveil one of his new green machines on TV tonight.
Will this be the beginning of a substantial increase in SP and profits?
I feel it is the beginning of a new age in mining, and the good Dr Twiggy is just the bloke to show them how.
Definitely a hold.
 
farmerge said:
FMG my No 2 pick in the Comp.
SP has improved recently which is god news.
We watched Twiggy unveil one of his new green machines on TV tonight.
Will this be the beginning of a substantial increase in SP and profits?
I feel it is the beginning of a new age in mining, and the good Dr Twiggy is just the bloke to show them how.
Definitely a hold.
Click to expand...

I think the partnership with Liebherr and the decarbonisation of mining is great. I don't know if we will see any big profit boom in the short or medium term from these ventures. Frankly (almost) nothing can match the money minting machinery of iron ore sales at current prices.

But there will be value to FMG's bottom line as it decreases operating costs and perhaps has a financial stake in some of the engineering ventures in its fold. For example the Williams Advanced engineering group which it bought into FMG could turn a dollar.
 
basilio said:
I think the partnership with Liebherr and the decarbonisation of mining is great. I don't know if we will see any big profit boom in the short or medium term from these ventures. Frankly (almost) nothing can match the money minting machinery of iron ore sales at current prices.

But there will be value to FMG's bottom line as it decreases operating costs and perhaps has a financial stake in some of the engineering ventures in its fold. For example the Williams Advanced engineering group which it bought into FMG could turn a dollar.
Click to expand...
I don't think that Twiggy's sole aim is to save the world from itself, the black bottom line has a lot to do with all of his decisions.
But, what is good forTwiggy's hip pocket nerve is also great for the peasants.
 

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