Reporting Season: Fortescue Metals Group Ltd (FMG.ASX)

Reporting Season, Stocks Aug 21, 2020 / Reading Time: < 1 min
By Edward Heng Reading Time: < 1 min

Overall, FMG beat expectations, with its dividend being the highlight of the report (significantly higher than expectations, with a payout ratio of 77%). Its outlook is neutral/slightly bearish, with production numbers not expected to change much from FY20, its C1 costs to increase from US12.94/wmt to US$13-13.5/wmt, and its capital expenditure to increase from $1.97 bn to $3.0-3.4 bn.

https://maqro.com.au/download/35019/

 

Key Metrics:

Tonnes shipped178.2m wmt shipped in FY20, a 6.26% increase on FY19.
Capital Expenditure$1.97 bn
Cost/wmt (C1 costs)C1 cost was US$12.94/wmt, a 1.3% decrease on FY19.
Total Recordable Injury Frequency Rate.Total Recordable Injury Frequency Rate was 2.4 in FY20, a reduction of 15% on FY19.

 

Outlook:

  • 175-180mt Iron Ore Shipments (similar to FY20)
  • C1 costs based on assumed exchange rate of AUDUSD 0.7: US$13-13.5/wmt (higher than FY20)
  • Capital Expenditure: $3.0-3.4 bn
  • US$1.0bn of sustaining, operational and hub development capital
  • US$140mm of exploration expenditure and studies
  • US$1.9-2.3bn for major projects (Eliwana, Iron Bridge and Energy)