Site menu

Search by ticker code:
Generic filters

Menu

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Fortescue Metals Group Limited (FMG) Shares Fall Despite 40mt Production

The Fortescue Metals Group Limited (ASX: FMG) share price was trading 4% lower on Thursday after the Australian iron ore heavyweight released its quarterly production report.

Fortescue, which produces and ships its ore from Western Australia, revealed in an ASX filing that it produced some 40.2 million tonnes of iron ore during the quarter ended September 2018.

Costs to produce the ore were US$13.19 per wet tonne (wmt), slightly higher than the previous quarter’s average cost of $US12.17 per tonne.

However, Fortescue CEO Elizabeth Gaines was quick to point out that the average price rose to $US45 per tonne and the company remains on track for a full year production profile of between 165 million and 173 million tonnes.

“The Fortescue team have delivered a strong start to FY19 with shipments of 40.2mt for the quarter, an increase in realised price to US$45/dmt through our optimised product strategy and C1 costs of US$13.19/wmt,” Gaines said.

“Shipments of our 60.1% iron grade product, West Pilbara Fines (WPF) are scheduled to commence from December this year, further enhancing our product mix.”

Fortescue noted that its $US500 million share buyback program will be funded from cash flows from the business and remain in effect for 12 months.

Fortescue ended the quarter with $US972 million of cash and net debt of $US3 billion.

“Fortescue’s disciplined capital management is a key focus, with our A$500 million share buy-back program announced during the quarter,” Gaines added.

According to data from Indexmundi, iron ore prices have fallen 10% so far in 2018 but ended September at $US68.44 per tonne.

The Fortescue share price is down from almost $5 in February to $3.70 today, according to Yahoo!Finance.

Free Investing Report: 3 Proven ASX Shares

The Rask Group has just issued an investing research report on 3 proven ASX dividend + growth shares. Click here to access the free report. No credit card or payment required. (sponsored)

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our Terms, Financial Services Guide, Privacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content