Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Australia
  4. Australian Stock Exchange
  5. Fortescue Metals Group Limited
  6. News
  7. Summary
    FMG   AU000000FMG4

FORTESCUE METALS GROUP LIMITED

(FMG)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Fortescue Metals : Miner Fortescue lifts cost estimate again, delays start of Iron Bridge project

05/27/2021 | 10:55pm EDT

MELBOURNE, May 28 (Reuters) - Australia's Fortescue Metals Group raised the cost estimate for its Iron Bridge magnetite project for the second time this year on Friday, citing the impact of inflation on expenses and labour constraints to push back first production.

The company set Dec. 2022 as the new date for the start of production from the centrepiece of its plan to boost margins by meeting China's demand for high-grade ore, a timeline that is six months later than its February estimate.

The world's fourth-largest iron ore miner said it now expected the project, a joint venture with China's Formosa Steel and Baosteel Resources, to cost between $3.3 billion and $3.5 billion, up from $3 billion estimated three months ago.

Higher costs were a touch under what some analysts had modelled, said analyst Kaan Peker of RBC, who added that Fortescue's upward revision of costs per tonne, by about $3, chiefly for transport and ports, might not suffice.

"That would have been a bit of a disappointment in terms of consensus. Also their ramp-up timeframe has been pushed out," he said.

RBC expects the ramp-up to 22 million tonnes to take two to 2-1/2 years, he added, longer than the 12 to 18 months that Fortescue expected.

Chief Executive Elizabeth Gaines said she was confident Fortescue would meet the new guidance on costs and timing.

"We now have a very robust capital estimate and a robust schedule," Gaines told a media call. "We will be working very hard to reach that 12 month ramp-up."

The cost increase came in part from Fortescue's decision to use a 135-km (84-miles) pipeline to pump concentrate slurry to Port Hedland from Iron Bridge, rather than modifying its railway, as well as pricier labour and materials, she said.

The miner has secured a separate port for delivery to resolve its problem of receiving large pieces of modular equipment into crowded Port Hedland.

The project incurred costs of $1.5 billion by the end of April, with the Australian miner bearing a major chunk of the expenses, which it also blamed on unfavourable foreign currency rates.

Senior company executives resigned in February after a project review following media reports over a cost blowout of as much as 25%.

Fortescue, which had planned first production from Iron Bridge in the first half of 2022, said it is still expected to deliver 22 million tonnes a year of high-grade 67% Fe magnetite concentrate.

Its shares were up 0.2%, with the benchmark index up 1.2%. (Reporting by Melanie Burton in Melbourne and Nikhil Kurian Nainan in Bengaluru; Editing by Clarence Fernandez)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BAOSHAN IRON & STEEL CO., LTD. -0.41% 7.35 End-of-day quote.23.53%
FORTESCUE METALS GROUP LIMITED -3.40% 23.27 End-of-day quote.-0.68%
All news about FORTESCUE METALS GROUP LIMITED
08/05Australian shares unchanged as miners, tech stocks diverge
RE
08/05FORTESCUE METALS : to Resume Operations at Cloudbreak Mine Following COVID-19 In..
MT
08/05Australian shares close at record highs on banking boost; miners slip
RE
08/04Australia shares propped up by tech stocks; energy weighs
RE
08/04Australian shares close at record highs on miners boost
RE
08/04FORTESCUE METALS : COVID-19 update
PU
08/03Australia shares track Wall Street higher, miners boost
RE
08/02IRON ORE MINERS ARE AWASH WITH CASH, : Russell
RE
08/02Afterpay lifts Australian shares to record close
RE
08/02IRON ORE MINERS ARE AWASH WITH CASH, : Russell
RE
More news
Financials (USD)
Sales 2021 22 173 M - -
Net income 2021 10 182 M - -
Net cash 2021 2 220 M - -
P/E ratio 2021 5,19x
Yield 2021 15,8%
Capitalization 53 012 M 53 072 M -
EV / Sales 2021 2,29x
EV / Sales 2022 2,51x
Nbr of Employees -
Free-Float 50,9%
Chart FORTESCUE METALS GROUP LIMITED
Duration : Period :
Fortescue Metals Group Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FORTESCUE METALS GROUP LIMITED
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 18
Last Close Price 17,23 $
Average target price 16,55 $
Spread / Average Target -3,93%
EPS Revisions
Managers and Directors
Elizabeth Anne Gaines Chief Executive Officer & Executive Director
Ian Wells Chief Financial Officer
John Andrew Henry Forrest Chairman
Mark Bradley Barnaba Deputy Chairman
Ya Qin Zhang Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
FORTESCUE METALS GROUP LIMITED-0.68%53 072
VALE S.A.24.73%108 118
KUMBA IRON ORE LIMITED22.63%17 612
NMDC LIMITED57.21%7 075
FERREXPO PLC58.88%3 668
LABRADOR IRON ORE ROYALTY CORPORATION49.62%2 489