FMG - Fortescue Ltd

[Kauri]

Cyclones George (and Jacob?) at Port Hedland have been particularly tough on FMG sites and constructions. Poor bugas in site sheds that blew over. Surely FMG shares will slow down (if not go backwards) in the short term at least.

Theoretically it shouldn't affect them too much, the affected camps were rail construction camps, ...still a very sad day.... riding out cyclones in donga's is never a nice experience. Hope evacs for Jacob have been carried out!!!

 

[Kauri]

Investigators arrive at devastated mining camp

13th March 2007, 10:15 WST

Investigators have travelled to the remote construction camp where two people died and more than 20 were injured when Cyclone George swept through Western Australia's north last week.

Twelve forensics experts, crime scene investigators and WorkSafe investigators this morning took a helicopter to the Fortescue Metals Group railway construction camp RV1, 105km south of Port Hedland.

Perth mother of two Debra Till, 47, died and Craig Raabe, 42, was fatally injured when George slammed into the camp early on Friday morning.

At nearby Indee station, Sydney Baker, 74, died of a suspected heart attack.

Unions have voiced concerns that the camp was not adequately prepared for the powerful category four cyclone.

Police have launched a major inquiry into the deaths and investigators will today begin examining the FMG camp and sift through the wreckage of portable homes smashed by the cyclone.

Police spokesman Brian Cowie said officers would interview about 200 people in what was likely to be a long and protracted investigation.

"It depends on what they find and they've got lots of witnesses to speak to," Mr Cowie said.

Police will be speaking to all of the surviving workers from the mine site as well as rescue workers and others, he said.

FMG's billionaire chief executive Andrew Forrest yesterday defended the company's decision not to evacuate workers from the camp ahead of the cyclone.

AAP

Might be a bit of bad publicity coming up... no matter how many investigators they send the (Fleetwood) dongas are built to withstand cyclones, I think the simple fact that they were just dropped on the deck as opposed to being anchored to slabs/ buried concrete blocks might be the problem in a 270kmh breeze. Interestingly enough I hear the office block was chained down to about 1 tonne of buried concrete!!!

 

[2020hindsight]

some polly saying they were designed for force 3 winds but not for force 4 I'm surprised he didnt say there were designed for force 3.9 but not 4 anyway earlier in the week I got out of FMG and got into ABY -, FMG down 2.7%, ABY down 4.7% lol.

 

[Freeballinginawetsuit]

Strong finish for FMG on the close today if you timed an exit, unfortunate for those that bailed days back. Touching all time highs ATM

Not sure what effect the cyclone publicity will have?, not much effect ATM though. A bit of a concern they can't anchor Donga's to skids......lets hope they can build a mine better .

 

[michael_selway]

Strong finish for FMG on the close today if you timed an exit, unfortunate for those that bailed days back. Touching all time highs ATM

Not sure what effect the cyclone publicity will have?, not much effect ATM though. A bit of a concern they can't anchor Donga's to skids......lets hope they can build a mine better .

This one beats PDN's story imo!

thx

MS

 

[Kimosabi]

I can't believe the Share Price of this stock and they've hardly sold anything yet.

 

[michael_selway]

I can't believe the Share Price of this stock and they've hardly sold anything yet.

FMG is totally unbelivable!

even the recent correction didnt affect it!

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS -1.0 -40.8 -26.7 11,659.9
DPS 0.0 0.0 0.0 0.0

thx

MS

 

[Kauri]

I can't believe the Share Price of this stock and they've hardly sold anything yet.

A peice of an article from the West Australian paper last week...

Though it was yet to ship a single tonne of ore, Fortescue still offered “reasonably good value” when compared to the massive iron ore arms of BHP Billiton and Rio Tinto, he said. Fortescue was trading at $2.39 per tonne of resource, compared to $2.61 for Rio.

But Fortescue’s rapid increase and the potential for lengthy construction and commissioning delays after the cyclone are causing some concern.

“When you get coronial inquiries and so on . . . it can get messy, and what worries me is how they are going to retain all their people,” one east coast analyst said.

 

[Freeballinginawetsuit]

A peice of an article from the West Australian paper last week...

FMG's SP has appreciated another 10 percent since the West's article Kauri.

That brings the valuation of thier expected ore tonnages in line with peers and they haven't even mined yet...........whats the further upside?.

An amazing stock FMG, what a story for long term investors.

 

[2020hindsight]

Theoretically it shouldn't affect them too much

Kauri, I'll never doubt your word again. - I notice that "eastern state analyst" is still predicting some probs with "messy" coronial enquiries - but FMG just charges upwards - 33% this month.

 

[Kauri]

FMG's SP has appreciated another 10 percent since the West's article Kauri.

That brings the valuation of thier expected ore tonnages in line with peers and they haven't even mined yet...........whats the further upside?.

An amazing stock FMG, what a story for long term investors.

Everytime I see FMG I get that warm fuzzy feeling.... as I posted elsewhere my scalp trade on AMS...just before Forrest got involved and it was renamed FMG...
Now with that infallible indicator hindsight.....a $250 profit could now be.. ....... $680,000.. but just think of all the tax I saved!!!!

 

[2020hindsight]

$250 profit could now be.. ....... $680,000..

lol - thanks - I feel better already my $25 profit could have been $68 lol. pleased to see you bludy gurus are human after all. question is, - does one charge back in, or wait for the next correction (?) - which again, everyone seems to know about in hindsight

 

[Freeballinginawetsuit]

is, - does one charge back in, or wait for the next

In the case of FMG and a (host of former materials minnows), one dosen't charge at all, despite all the noise.........unless youre a scalper as Kauri pointed out.

Much better to scalp an AFRO than a Crew Cut, especially when its a new barber shop and the barber wants steel scissors rather than bamboo ones.

Seems reasonable to sugest he may well aspire to future aspirations of stainless ones and car to get to work rather than a pushy.

But as you have said thats all hindsight.......and was never realistic, he should be more concerned with wordly economics!.....or possably wordly economics should be concerned with him

 

[2020hindsight]

lol - k m8 I'll (probably) go looking for an afro to scalp. :afro: (to be honest I'm watching from the sidelines for a day or so - my usual impeccable timing lol)

Fortescue was trading at $2.39 per tonne of resource, compared to $2.61 for Rio.

this would imply (I assume) that long term FMG will increase 10% more than RIO will.

 

[Freeballinginawetsuit]

LOL, even for those with afro's they still need to keep the hair off thier eyes, ears and neck. A good trim can be rewarding and make hair grow better

The barbers a busy man nowaday's, plenty of customers. Still I have a sneaky opinion he may well open in the evenings in the future.....with lights, a chair and even electric clippers.

Best to be the first customer then, or even a customer on the first day........and enjoy the fruits of a full service 'shampoo and all', I'll be having a full shave then..

Hopefully he is still open for business.

 

[krisbarry]

Ohhh...this is really starting to hurt now, seeing the share price continue to rise. 64 cents was my buy price.... I would be worth almost $350,000 if i had held for just under 3 years.

I better ring my psych and make another appointment

 

[Kauri]

From todays West Australian paper....
Russian talk drives FMG through $6b


23rd March 2007, 7:15 WST



Fortescue Metals Group has cracked the $6 billion market barrier after its surging shares hit a fresh record close yesterday amid speculation Russian steel interests are again casting their eyes over the budding Pilbara iron ore producer.






The group fanned the flames that it had drawn the attention of prospective foreign investors yesterday after being prodded into an explanation for rampant buying which has sent the stock flying since cyclone George tore through one of its Pilbara construction camps early this month.

The stock, which touched $23.35 on Wednesday, closed 30 ¢ up at $22.70 to value the company at just over $6 billion.

Since George hit on March 10, Fortescue’s shares have surged almost 30 per cent ”” in the process making chief executive Andrew Forrest WA’s second multi-billionaire with a personal stake now valued at $2.3 billion.

In its statement yesterday, Fortescue said it “continues its practice to negotiate with various partners in regard to its normal course of stated business objectives”.

If concluded, such negotiations “may lead to agreements which would have a material impact” on the company, though they currently remained “incomplete and confidential”.

Several industry sources said there had been evidence that Russian interests were taking another look at Fortescue after missing out on a cornerstone stake last year.

The sources named Metalloinvest iron and steel billionaire Alisher Usmanov, already the biggest shareholder in Mt Gibson Iron, and fellow metals oligarch Viktor Vekselberg as possible investors.

Mr Vekselberg was an early supporter of Brian Gilbertson’s Pallinghurst Resources private equity vehicle which is now offering $320 million for control of WA nickel and manganese miner Consolidated Minerals.

Fortescue executive director Graeme Rowley would neither confirm nor deny yesterday that Fortescue was negotiating with Russian interests.

“I’ve had that question asked a couple of times today,” he said.

However, it would be inappropriate and premature to expand upon the company’s formal statement, he said.

In its statement, Fortescue noted that a number of analysts had just upgraded their iron ore price forecasts for next year and that Fortescue had been added to the FTSE All World Index in London, underpinning interest in the stock.

It also said its stock was being rerated as work progressed at its $3.7 billion Pilbara iron ore project.

Though Fortescue has admitted that it will no longer be able to ship first ore in March next year due to the impact of cyclone George, it still expects to start iron ore exports from Port Hedland by mid-2008.

The project is slated to ship about 30 million tonnes of ore in its first year, rising to 45 million tonnes a year within 18 months.

JOHN PHACEAS

 

[happytown]

interesting kauri,

here's today's smh take on it,

"Fortescue booming

Fortescue Metals' recent share price run has been nothing short of astonishing, especially given unknown delays to the project after two of its workers were killed in a cyclone.
The company yesterday found fit to list a few possible reasons it shares have broken the $20 barrier, which is well above founder Andrew "Twiggy" Forrest's 8c a share entry price, to say the least.

Fortescue said the rise could be linked to increased iron ore price forecasts along with fund buying linked to its recent addition to the mid-cap FTSE World Index.

But true to form, the company couldn't resist adding a final paragraph which could incite takeover speculation.

"Fortescue continues its practice to negotiate with various parties in regard to its normal course of stated business objectives," the company said. "If such negotiations are from time to time concluded, they may lead to agreements which would have a material impact on the company and therefore need to be disclosed to the market. At this stage none of the negotiations are concluded and they remain incomplete and confidential."

But it's understood the negotiations refer to offtake agreements with steelmakers and the company's plans to increase production beyond 45 million tonnes a year rather than interest from a corporate buyer.

Fortescue shares closed 30c higher at $22.70 yesterday."

in the end so long as the price goes up

cheers

 

[Kauri]

happytown
Twiggy has proved he is a master at playing the market time after time Can still remember his early foray into importing Lama's where eventually the investors as well as the Lama's were spitting.
As trajic as the deaths in Cyclone George are, the general consensus around town was that they were not going to meet their March shipment deadline, George seems to have given them the reason they needed to put it back initially by 3 months.
Regardless, it is onwards and upwards.. barely pausing to catch breath.

 

[Kimosabi]

hhhhmmmmm, Trading Halt, this could be interesting...