Image source: © Viewimage | Megapixl.com

Highlights

  • FMG is an ASX-listed exploration, development, production, processing, and marketing company with focus on copper, gold, lithium deposits, and rare earth elements
  • In 1HFY24, revenue of FMG surged by 21.40% YoY to USD 9,512 million
  • Forrest (John Andrew Henry) has the highest stake in the company with a shareholding of ~36.75%

Fortescue Limited (ASX: FMG) is involved in the exploration, development, production, processing, and marketing of copper, gold, lithium deposits, and rare earth elements. Moreover, the company is an integrated green technology, metals and energy organisation.

In the first half of the financial year 2024 (1HFY24), FMG’s revenue increased by 21.40% YoY to USD 9,512 million, supported by increase in shipping and iron ore sales, partially offset by a fall in revenue from engineering and manufacturing services. The period recorded 41% YoY rise in net profit to USD 3,337 million, driven by favourable price movements and disciplined cost management. Net cash flow from operating activities increased by 41.45% to USD 4,170 million in 1HFY24.

Top 10 shareholders of FMG

The top 10 shareholders of FMG have nearly 58.47% shareholding in the company, while the top four have around 52.14% of the shareholding. Forrest (John Andrew Henry), and Valin Investments (Singapore) Pte. Ltd. have the highest stake in the firm with the shareholding of ~36.75% and ~7.41%, respectively.

Recent business update

On 17 July 2024, the company informed about the appointment of Apple Paget, existing acting CFO, as the group CFO. Existing chief corporate officer, Shelley Robertson has been appointed as the chief operating officer and assistant company secretary, Navdeep (Mona) will transition into the role of company secretary.

Outlook

In FY24, the C1 cost for Pilbara Hematite is expected to range from USD 18 to 19 per wet metric tonne. During the reported period, metals capital expenditure of USD 2.5-2.7 billion is expected and energy net operating expenditure is anticipated to reach USD 700 million.

Preparations are underway for initiating drilling campaigns in South Australian and Western Australia, with copper targets set for 4QFY24 as part of the mineral’s exploration initiatives.   

Share performance of FMG

FMG shares closed 1.44% lower at AUD 21.21 apiece on 23 July 2024. FMG’s share price has dropped by almost 4.42% in the last one year and recorded a fall of 24.38% in the last six months.

52-week high of FMG is AUD 29.95, recorded on 2 February 2024, while 52-week low is AUD 19.29, recorded on 11 September 2023.

FMG Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 23 July 2024. The reference data in this report has been partly sourced from REFINITIV.