Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Fortescue (ASX:FMG) Share Price Jumps On Dividend Boost

Fortescue Metals Group Ltd (ASX: FMG) shares have jumped after it released its half-year results to 31 December 2018, with its net profit after tax (NPAT) down 5.4% to USD $644 million.

Despite this, the market seemed to like it (probably due to the dividends) with Fortescue shares up as much as 7.5% in early trading to $6.83.

Fortescue is an iron ore production and exploration company with assets located in Western Australia.

Key Results

Fortescue reported:

  • Revenue down 3.77% to US$3.54 billion
  • NPAT down 5.4% to US$644 million
  • Total dividend of 30 cents per share fully franked, comprised of:
    • Interim dividend up 73% to 19 cents fully franked (previously 11 cents)
    • Special dividend of 11 cents fully franked.
  • US$948 million cash from operating activities.

Operational Performance

From its mining activities, Fortescue reported:

  • Mined ore tonnes up 9% from prior half to 101.1 wmt (wet metric tonnes)
  • Processed tonnes up 3% from prior half to 85.3 wmt
  • Shipped tonnes down 2% from prior half to 82.7 wmt
  • Realised price unchanged from prior half at USD $47/wmt
  • C1 costs of up 8% from prior half at USD $13.11

Fortescue stated that 10% of its sales this half were now outside China. Put another way, 90% of its sales were to China making it completely reliant on China for economic prosperity and survival.


Fortescue’s net debt is US$3.036 billion, with a net gearing ratio of 23%. This is a far cry from when it had as much as US$13 billion of debt in 2013 with a net gearing of 199%.

Management Commentary

CEO, Elizabeth Gaines, said, “the Fortescue team have successfully delivered on our integrated operations and marketing strategy, resulting in an average realised price of US$47/dmt for the half year. This reflects strengthening iron ore markets, demand for our products…”

Rask Perspective

Fortescue’s underdog story of breaking up the Rio Tinto (ASX: RIO) and BHP Group (ASX: BHP) oligopoly on the iron ore market in Australia is incredible and a testament to Andrew Forrest. As much as I love the story, however, I don’t like the company at all from an investment perspective because it is a price taker selling commodities.

[ls_content_block id=”14945″ para=”paragraphs”]

$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 TermsFinancial Services GuidePrivacy 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