The share price of Fortescue Metals Group Limited (ASX: FMG) rose more than 6% in response to commodity market movements.
Fortescue Metals Group or FMG is a global leader in the iron ore industry, known for its leading development of world class infrastructure and mining assets in the Pilbara region of Western Australia. Fortescue was founded in 2003 by Andrew Forrest, who is now one of Australia’s wealthiest people. The vast majority of Fortescue’s iron ore, a steel-making ingredient, is shipped and sold to Chinese customers.
Fortescue Share Price Grows
The Fortescue share price displayed the best rise in the ASX 200. Fortescue is known for mining lower grade iron ore. Luckily for Fortescue, the lower grade iron ore price hit a five year high this week and has increased by more than 100% since the low in November 2018.
With a high level of fixed costs, most of the additional revenue that Fortescue can get for its resources falls straight to the bottom line, which is why the share price has done so well this year and particularly today.
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