Announcement • May 26
Fortescue Ltd Announces Board Changes Fortescue Ltd. advised that Elizabeth Gaines has resigned as Executive Director with effect from 30 June 2026. Ms Gaines has made an extraordinary contribution to Fortescue for more than 13 years, joining the Board as a Non-Executive Director in February 2013, before joining the Executive team as Chief Financial Officer in February 2017 and leading Fortescue as Chief Executive Officer and Managing Director from February 2018 to August 2022. Ms Gaines has been a driving force behind the global transition to green energy and has been an ambassador and advocate of Fortescue's 2030 Real Zero target to decarbonise its mining operations. Fortescue also advises that Ms Sigrid Kaag will be appointed to the Fortescue Board as a Non- Executive Director (subject to completion of regulatory procedures). Ms Kaag brings more than 35 years of experience in international affairs, trade and finance at
national and international levels of leadership. She has served in senior roles in national Government, including First Deputy Prime Minister and Minister of Finance of the Netherlands, as well as Minister for Foreign Trade and Development Cooperation and Minister of Foreign Affairs. She also served in several senior leadership positions at the United Nations, including as UN Secretary General for the Middle East Peace Process as well as the Gaza Crisis. Ms Kaag has significant expertise in European decision-making, risk and crisis management, and sustainable finance. She has also held advisory and governance roles with leading international financial institutions and organizations focused on climate transition and investment. Ms Kaag holds a Master of Arts in Middle East Studies from the University of Exeter, a Master of Philosophy in International Relations from the University of Oxford, and a Bachelor of Arts in Middle East Studies from the American University in Cairo. Board Change • May 20
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Yasmin Broughton was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • May 09
Global Ambassador & Executive Director recently sold AU$5.5m worth of stock On the 4th of May, Elizabeth Gaines sold around 275k shares on-market at roughly AU$19.98 per share. This transaction amounted to 81% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$5.3m more than they bought in the last 12 months. Board Change • May 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Yasmin Broughton was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Feb 25
Fortescue Ltd Announces Fully Franked Ordinary Dividend for the Six Months Ended December 31, 2025, Payable on March 30, 2026 Fortescue Ltd. announced fully franked Ordinary dividend of AUD 0.62000000 per share for the six months ended December 31, 2025, payable on March 30, 2026 with record date of March 3, 2026 and Ex Date of March 2, 2026. Board Change • Dec 24
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Yasmin Broughton was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Sep 29
Fortescue Ltd, Annual General Meeting, Oct 31, 2025 Fortescue Ltd, Annual General Meeting, Oct 31, 2025. Location: at the elizabeth quay ballroom, the ritz carlton, 1 barrack street, perth western australia Australia Declared Dividend • Aug 28
Final dividend of AU$0.60 announced Shareholders will receive a dividend of AU$0.60. Ex-date: 1st September 2025 Payment date: 26th September 2025 Dividend yield will be 5.7%, which is higher than the industry average of 5.1%. Sustainability & Growth Dividend is covered by both earnings (66% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 38% over the next 3 years. Since a fall of 27% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. New Risk • Aug 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 22% Last year net profit margin: 31% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (22% net profit margin). Reported Earnings • Aug 26
Full year 2025 earnings released: EPS: US$1.10 (vs US$1.85 in FY 2024) Full year 2025 results: EPS: US$1.10 (down from US$1.85 in FY 2024). Revenue: US$15.5b (down 15% from FY 2024). Net income: US$3.37b (down 41% from FY 2024). Profit margin: 22% (down from 31% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to grow by 5.2%. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Board Change • Aug 18
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 5 independent directors. 7 non-independent directors. Independent Non-Executive Director Noel Pearson was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Feb 22
Fortescue Ltd Declares Fully Franked Interim Dividend The Board of Fortescue Ltd. declared a fully franked interim dividend of $0.50 per share. This represents a payout of 65% of NPAT and is consistent with the company's dividend policy to pay out 50% to 80% of NPAT. Announcement • Feb 12
Fortescue Ltd Appoints Noel Quinn as Non-Executive Director Fortescue Ltd. advised that Mr. Noel Quinn will be appointed to the Fortescue Board as a Non-Executive Director (subject to completion of regulatory procedures). Mr. Quinn brings 37 years of banking experience across the broad range of financial services, with the majority of his career in corporate banking and capital markets. His most recent role being Group Chief Executive of HSBC Holdings plc and prior to this Chief Executive of HSBC's Global Commercial Banking Division. In his role as CEO, Noel has been involved in a number of industry wide initiatives to facilitate public sector and private sector financing solutions for large infrastructure projects, particularly sustainable infrastructure. Noel was awarded a Knighthood in the New Years Honours List 2025, for his services to Financial Services and Net Zero. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to AU$20.70, the stock trades at a forward P/E ratio of 11x. Average trailing P/E is 13x in the Metals and Mining industry in Australia. Total returns to shareholders of 94% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$21.19 per share. Declared Dividend • Aug 30
Final dividend of AU$0.89 announced Shareholders will receive a dividend of AU$0.89. Ex-date: 4th September 2024 Payment date: 27th September 2024 Dividend yield will be 11%, which is higher than the industry average of 5.1%. Sustainability & Growth Dividend is covered by both earnings (71% earnings payout ratio) and cash flows (81% cash payout ratio). The dividend has increased by an average of 22% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 59% over the next 3 years. Since a fall of 21% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Aug 28
Full year 2024 earnings released: EPS: US$1.85 (vs US$1.56 in FY 2023) Full year 2024 results: EPS: US$1.85 (up from US$1.56 in FY 2023). Revenue: US$18.2b (up 8.0% from FY 2023). Net income: US$5.68b (up 18% from FY 2023). Profit margin: 31% (up from 28% in FY 2023). The increase in margin was driven by higher revenue. Revenue is expected to decline by 6.2% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to grow by 1.4%. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Aug 01
Fortescue Ltd Appoints Noel Pearson as Non-Executive Director Fortescue Ltd. announced that Mr. Noel Pearson has been appointed to the Fortescue Board as a Non-Executive Director. Among his other achievements, he is the founder of the Cape York Partnership, an organisation promoting the economic and social development of Cape York in Northern Queensland, the founder of Good to Great Schools Australia, dedicated to lifting education outcomes for all Australian students, and the Cape York Land Council. Buy Or Sell Opportunity • Jul 18
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to AU$22.04. The fair value is estimated to be AU$27.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.1% over the last 3 years. Earnings per share has declined by 20%. For the next 3 years, revenue is forecast to decline by 6.9% per annum. Earnings are also forecast to decline by 19% per annum over the same time period. Declared Dividend • Feb 24
First half dividend of AU$1.08 announced Shareholders will receive a dividend of AU$1.08. Ex-date: 28th February 2024 Payment date: 27th March 2024 Dividend yield will be 7.4%, which is higher than the industry average of 5.1%. Sustainability & Growth Dividend is covered by both earnings (74% earnings payout ratio) and cash flows (60% cash payout ratio). The dividend has increased by an average of 29% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 42% over the next 3 years. Since a fall of 18% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Feb 23
First half 2024 earnings released: EPS: US$1.09 (vs US$0.77 in 1H 2023) First half 2024 results: EPS: US$1.09 (up from US$0.77 in 1H 2023). Revenue: US$9.51b (up 21% from 1H 2023). Net income: US$3.34b (up 41% from 1H 2023). Profit margin: 35% (up from 30% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to decline by 6.7% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jan 20
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 29% to AU$27.61. The fair value is estimated to be AU$22.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 6.5%. For the next 3 years, revenue is forecast to decline by 3.6% per annum. Earnings are also forecast to decline by 12% per annum over the same time period. Announcement • Nov 29
Fortescue Ltd Announces Executive Changes Fortescue Ltd. announced the appointment of Phil McKeiver as a Secretary of the Company. Mr. McKeiver joined Fortescue in February 2022 and currently holds the position of Chief General Counsel. Mr. McKeiver has a Master's Degree in Law from the University of Oxford, a Bachelor of Laws and Bachelor of Economics from the University of Queensland and a Graduate Diploma in Legal Practice from the Australian National University. He is also a Graduate of the Australian Institute of Company Directors, a University Fellow with Charles Darwin University and a former Partner of the leading Australian law firm, Gilbert+Tobin. Mr. McKeiver replaces Gemma Tually as a Secretary of the Company. These changes take effect from 29 November 2023. Announcement • Sep 22
Fortescue Metals Group Limited, Annual General Meeting, Nov 21, 2023 Fortescue Metals Group Limited, Annual General Meeting, Nov 21, 2023, at 10:00 W. Australia Standard Time. Announcement • Sep 02
Fortescue Metals Group Limited Announces CFO Changes Fortescue Metals Group Limited advised the departure of Fortescue Metals Chief Financial Officer (CFO), Christine Morris. Fortescue's Group Manager Finance and Tax, Apple Paget has been appointed Fortescue MetalsActing CFO. Reported Earnings • Aug 28
Full year 2023 earnings released Full year 2023 results: Revenue: US$16.9b (down 3.0% from FY 2022). Net income: US$4.80b (down 23% from FY 2022). Profit margin: 28% (down from 36% in FY 2022). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 6.6% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 6% per year. Announcement • Aug 03
Fortescue Metals Group Limited Announces Appointment of Deborah Caudle as Chief Financial Officer of Fortescue Energy Fortescue Metals Group Ltd. announced that Fortescue Energy has appointed experienced finance executive Deborah Caudle as its Chief Financial Officer. Deborah will be part of the leadership team working to transition Fortescue into a global green metals and energy company, while remaining an industry leading iron ore operator and rapidly decarbonising its operations. Deborah, along with Mark Hutchinson, will deliver Fortescue Energy's green energy strategy - to lead the world in stepping beyond fossil fuels by developing green electrons, green hydrogen and green technology at scale. Deborah was Acting CFO of copper and nickel miner OZ Minerals prior to BHP's AUD 9.6 billion acquisition of the ASX100 company in May 2023. She joins Fortescue from BHP where she held the role of Finance Executive overseeing integration activities. Deborah previously held senior roles with Société Générale Corporate and Investment Banking (SGCIB) and Barclays Investment Banking, where she gained a wealth of international experience providing advisory, structuring and financing solutions in the mining and metals sector with a focus on acquisition finance, project finance, debt capital markets and sustainability finance. She started her career as a process engineer with BHP in the Pilbara. Having spent 24 years in the mining and minerals industries, Deborah will play a critical role in enabling Fortescue Energy to deliver on its ambition to bring five projects to the Fortescue Board for Final Investment Decision this year. Announcement • Jul 12
APA, Fortescue Reportedly Lead Race as Alinta Raises the Stakes in Asset Sale Alinta Energy Pty Limited is now understood to be set on selling all of the West Australian assets it has on offer, rather than just 80% stakes, and the understanding is that offers have landed between $1 billion and $1.5 billion. APA Group and Fortescue Metals are in the final stage of the race. There have been suggestions that Macquarie Capital and joint venture partner BP have fallen away. There may also be some other players in contention, with possibilities being I Squared Capital, Atco or TransAlta. It is understood most of the value of the offering is in the two power stations being sold by Alinta in WA - Port Hedland and Newman, a distillate power station with a battery storage system. The latter provides energy via a 220 kilovolt transmission line to the Roy Hill mine site in the Pilbara. The Port Hedland station has five 42 megawatt gas-fired turbine units, providing electricity to the Pilbara region. Some have estimated that the 11.8% stake in the 1,380km Goldfields gas pipeline, which transports natural gas from Carnarvon basin producers in the northwest of the state to Kalgoorlie in the Goldfields, is worth between $100m and $200m. APA owns the remainder of the pipeline and has pre-emptive rights to buy Alinta's interest. The remote energy grid would be worth about $50m at best. It is understood APA, advised by Barrenjoey and Morgan Stanley, is throwing everything at the contest and is the party to beat. Final bids are understood to be due in the middle of next month. Alinta is believed to have carried out management presentations to four parties in the second stage of the competition about three weeks ago. But now there is some talk that only Fortescue, advised by Citi, and APA are left in the race. Alinta's main customers in the WA mining region are Hancock, BHP and Fortescue. The offering has been described as highly complex. Alinta is working with investment bank Goldman Sachs on its offer. Analysts at Macquarie recently said APA had about $2bn of debt capacity, reducing the need to raise equity. Buying the Alinta assets would lift APA's capability in transmission management, with a transmission network of about 200km and scope for expansion and acquisition. Announcement • Jul 07
Macquarie Reportedly No Longer in the Final Stages of the Competition for Alinta and Weighing Options to Partner with Another Contender There could be a sudden turn of events in the contest for the West Australian energy assets of Alinta Energy Pty Limited. Speculation is mounting that Macquarie Group Limited (ASX:MQG) is no longer in the final stages of the competition and is weighing options to partner with another contender. One suggestion is that it is looking to join forces with APA. APA does not need Macquarie as its funding partner, but that is not to stop the Australian investment bank from trying. Final bids for Alinta are understood to be due in the middle of next month. About three weeks ago, Alinta was believed to have carried out management presentations to four parties in the second stage of the competition. But now there is talk that only Fortescue Metals Group Limited (ASX:FMG) and APA Group (ASX:APA) are left in the race. Investment bank Citi is working with Fortescue Metals, while Barrenjoey and Morgan Stanley are advising APA Group. Alinta is selling a stake of 80% or more in a selection of assets. These include its Newman Power Station and a remote energy grid in the Pilbara that includes a gas and distillate power station with a battery storage system. It provides energy via a 220 kilovolt transmission line to the Roy Hill mine site in the Pilbara. Also on offer is its Port Hedland Power Station with five 42 megawatt gas-fired turbine units providing electricity to the Pilbara. Alinta is also selling its 11.8% stake in the 1380km Goldfields Gas Pipeline, which transports natural gas from Carnarvon basin producers in the northwest to Kalgoorlie in the Goldfields. APA owns the remainder of the pipeline and has pre-emptive rights in place to buy Alinta's interest. Macquarie Capital was said to be working on an acquisition with BP, through the pair's Asian Renewable Energy Hub, of which BP is a 40.5% owner. The venture has a project in the Pilbara that it hopes can supply renewable power to local customers. It is working to support the development of 26 gigawatts of combined solar and wind power generating capacity. Sources say Fortescue was initially out of the running after round one, but re-entered when it adjusted its offer. They add that should suitors bid what the company has outlined in the information memorandum, the price would be well above $1 billion. Announcement • Jun 09
Fortescue Metals Group Limited Announces Board Changes Fortescue Metals Group Ltd. advises that Jennifer Morris OAM has resigned as a Non-Executive Director with effect from 30 June 2023. Ms Morris was first appointed to the Board as a Non-Executive Director in November 2016. She has been the Chair of the Remuneration and People Committee since February 2020 and a member of the Audit, Risk Management and Sustainability Committee since August 2017. In announcing Ms Morris' resignation, Fortescue Executive Chairman, Dr. Andrew Forrest AO, thanked Jenn for her contribution to Fortescue. Fortescue Non-Executive Director, Penny Bingham-Hall, will replace Ms Morris as Chair of the Remuneration and People Committee, effective from 1 July 2023. Fortescue also advises that Elizabeth Gaines will transition into a new role as an Executive Director, effective from 1 July 2023. Since returning to her position as a Non-Executive Director and becoming a Global Ambassador for Fortescue in August 2022, Ms Gaines has provided a substantial and valuable contribution to the Company. The Global Ambassador role, which is in addition to her position as a Director of Fortescue, has required significantly more time and commitment than was originally anticipated and to recognise and secure Ms Gaines' commitment to Fortescue, consistent with good corporate governance, Ms Gaines will remain on the Board as a Director and will transition into a part-time Executive Director role reporting directly to the Executive Chairman. Announcement • Jun 02
Fortescue Metals Group Ltd Appoints Christine Morris as Chief Financial Officer Fortescue Metals Group Ltd. announced the appointment of Ms Christine Morris as Chief Financial Officer (CFO) of Fortescue Metals. Christine will report to Fiona Hick, Fortescue Metals Chief Executive Officer. Christine will be part of the leadership team working to transition Fortescue into a global green metals, energy and products company, while remaining the world's best, lowest-cost iron ore operator and rapidly decarbonising its operations to real zero. Christine is a highly regarded CFO with more than 30 years of experience spanning across energy, media and telecom, manufacturing and technology. Christine most recently served as Chief Financial Officer of Maersk Drilling in Copenhagen, Denmark, where she was responsible for Finance and the Global Business Services organisation. Prior to Maersk Drilling, she was the Chief Financial Officer of BJ Services, an oilfield services company. She also spent seven years at Halliburton in various senior finance roles. Christine serves as a board member and audit committee chair for DOF ASA. Christine will commence with Fortescue in early July 2023. Upcoming Dividend • Feb 20
Upcoming dividend of AU$0.75 per share at 8.3% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 29 March 2023. Payout ratio is a comfortable 70% and the cash payout ratio is 92%. Trailing yield: 8.3%. Within top quartile of Australian dividend payers (6.8%). In line with average of industry peers (7.7%). Reported Earnings • Feb 16
First half 2023 earnings released: EPS: US$0.77 (vs US$0.90 in 1H 2022) First half 2023 results: EPS: US$0.77 (down from US$0.90 in 1H 2022). Revenue: US$7.84b (down 3.6% from 1H 2022). Net income: US$2.37b (down 15% from 1H 2022). Profit margin: 30% (down from 34% in 1H 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to decline by 7.2% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 09
Fortescue Metals Group Limited Announces Resignation of Ian Wells as Group Chief Financial Officer Fortescue Metals Group Ltd. announced the resignation of its long serving Group Chief Financial Officer, Mr. Ian Wells. Mr. Wells joined Fortescue in 2010 and has held various senior executive finance roles, notably as Chief Financial Officer since 2018. After the best part of 13 years at Fortescue, Mr. Wells has resigned from the Company to pursue other opportunities. Fortescue is undertaking a process to identify Mr. Wells' successor. Mr. Wells will continue in his current role until 31 January 2023. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 3 highly experienced directors. 2 independent directors (7 non-independent directors). Independent Non-Executive Director Jean Baderschneider was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Buying Opportunity • Oct 29
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 19%. The fair value is estimated to be AU$19.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to decline by 8.7% per annum. Earnings is also forecast to decline by 24% per annum over the same time period. Buying Opportunity • Sep 22
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 4.1%. The fair value is estimated to be AU$21.30, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to decline by 9.8% per annum. Earnings is also forecast to decline by 27% per annum over the same time period. Reported Earnings • Aug 30
Full year 2022 earnings released: EPS: US$2.01 (vs US$3.35 in FY 2021) Full year 2022 results: EPS: US$2.01 (down from US$3.35 in FY 2021). Revenue: US$17.4b (down 22% from FY 2021). Net income: US$6.20b (down 40% from FY 2021). Profit margin: 36% (down from 46% in FY 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is expected to shrink by 8.3% compared to a 81,520% growth forecast for the Metals and Mining industry in Australia. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Non-Executive Director Jean Baderschneider was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Feb 21
Upcoming dividend of AU$0.86 per share Eligible shareholders must have bought the stock before 28 February 2022. Payment date: 30 March 2022. Payout ratio is a comfortable 74% but the company is paying out more than the cash it is generating. Trailing yield: 15%. Within top quartile of Australian dividend payers (5.4%). Higher than average of industry peers (8.7%). Reported Earnings • Feb 18
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: EPS: US$0.90 (down from US$1.33 in 1H 2021). Revenue: US$8.13b (down 13% from 1H 2021). Net income: US$2.78b (down 32% from 1H 2021). Profit margin: 34% (down from 44% in 1H 2021). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Over the next year, revenue is expected to shrink by 30% compared to a 750% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has increased by 51% per year whereas the company’s share price has increased by 48% per year. Board Change • Jan 01
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 3 highly experienced directors. 2 independent directors (7 non-independent directors). Independent Non-Executive Director Jean Baderschneider was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Recent Insider Transactions • Sep 29
CEO, MD & Executive Director recently sold AU$9.4m worth of stock On the 21st of September, Elizabeth Gaines sold around 640k shares on-market at roughly AU$14.69 per share. This was the largest sale by an insider in the last 3 months. This was Elizabeth's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment deteriorated over the past week After last week's 16% share price decline to AU$15.27, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 10x in the Metals and Mining industry in Australia. Total returns to shareholders of 508% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$21.28 per share. Reported Earnings • Aug 30
Full year 2021 earnings released: EPS US$3.35 (vs US$1.54 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: US$22.3b (up 74% from FY 2020). Net income: US$10.3b (up 117% from FY 2020). Profit margin: 46% (up from 37% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has increased by 76% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 27
Fortescue Metals Group Limited Provides Mineral Resources and Ore Reserves Update Fortescue Metals Group Ltd. presents the attached Mineral Resources and Ore Reserves statements for its Operating and Development Properties as at 30 June 2021. Ore deposit types include Bedded Iron (BID), Channel Iron (CID) and Detrital Iron (DID) mineralization. The magnetite properties refer to the Iron Bridge Magnetite Project. Fortescue's hematite Ore Reserves at 30 June 2021 is estimated to consist of 2,082 million tonnes (mt) at 57.4% Fe of dry product, a decrease of 165mt compared to the Ore Reserve estimate at 30 June 2020. This decrease is broadly in line with depletion due to production for the financial year. As at 30 June 2021, the Mineral Resources for the Operating Properties (Chichester, Solomon and Western Hubs, including Flying Fish) is estimated to be 5,367mt at an average Fe grade of 56.3%, a decrease of 465mt over 30 June 2020. This was accompanied by a minor decrease in the proportion of higher confidence Measured and Indicated Mineral Resources from 70 per cent to 68 per cent. In-situ bulk densities at the Cloudbreak, Christmas Creek, Valley of Queens, Eliwana and the majority of the Flying Fish deposits have been revised following analysis of data from an extensive program of diamond drilling and downhole geophysical data. These revisions account for the bulk of the 465mt decrease in Mineral Resources. As at 30 June 2021, the Mineral Resources for the Development Properties is estimated to be 8,296mt at an average Fe grade of 57.0%. Updates have been completed for deposits in the Greater Western and Pilbara Other Hubs as a result of exploration drilling, with an overall increase of 236mt compared to 30 June 2020. Updated estimates have been produced for the Elevation and Farquhar deposits within the Greater Western Hub and the Flying Fish Marra Mamba deposit has been transferred to the operating properties, leading to an overall decrease of 118mt. A Mineral Resource estimate has been produced for the new Mindy South deposit to add 279mt. An updated Mineral Resource estimate has also been produced for the Wonmunna deposit to add 75mt. Mindy South and Wonmunna are reported in the Pilbara Other Hub. The additional tonnes include high grade BID in the Brockman and Marra Mamba Iron Formations, along with some CID and DID mineralization. Announcement • May 29
Fortescue Metals Group Limited Provides Iron Bridge Project Update Fortescue Metals Group Limited announced that Iron Bridge technical and commercial assessment completed Project to deliver 22mtpa of high grade 67% Fe magnetite concentrate product, with first production by December 2022. Highlights: Iron Bridge Magnetite project (Iron Bridge) to deliver 22 million tonnes per annum (mtpa) of high. grade 67% Fe magnetite concentrate product, with first production by December 2022 Strategic investment enabling Fortescue to provide an enhanced product range and increase
production and shipping capacity to meet strong customer demand. Capital estimate revised to USD 3.3 - USD 3.5 billion, subject to Iron Bridge Joint Venture approval, with FMG Iron Bridge Ltd.'s share USD 2.5 - USD 2.7 billion The Joint Venture has incurred capital expenditure of USD 1.5 billion as at 30 April 2021, and FMG Iron Bridge Ltd.'s investment is USD 1.3 billion. The 67% Fe content low impurity concentrate product is anticipated to receive a premium to the Platts 65% Fe CFR Index. Competitive cost structure with life of mine C1 cost estimate of USD 33-38/wet metric tonne
(wmt) and sustaining capital expenditure of USD 5-7/wmt. Validation of the design and construction of a 135km concentrate slurry pipeline from Iron Bridge to Port Hedland and return water pipeline. Construction commenced of a module offload facility at Lumsden Point in Port Hedland to address logistics constraints and underpin the project schedule. Innovative magnetite processing flowsheet remains unchanged, having been validated through the operation of a large scale pilot plant and full scale demonstration plant from 2015. Long mine life supported by a Mineral Resource of 5.4 billion tonnes and Ore Reserve of 716 million tonnes. Technical and commercial assessment: The 12-week technical and commercial assessment commenced in February 2021 with the following objectives: Validation of the capital cost and schedule - Resetting the contractor strategy - Validation of the concentrate transportation solution - Commercial optimisation of capital and operating costs - De-risking the project execution and logistics. Outcomes of the assessment include: Additional geotechnical investigation of the pipeline corridor further validating the original design. This comprises installation of a 135km concentrate slurry pipeline from Iron Bridge to Port Hedland together with a return water pipeline - Resolving the logistics bottleneck for the delivery of modules, with construction of a module offload facility underway at Lumsden Point at Port Hedland - First production by December 2022 and ramp up to full production run rate in 12 - 18 months - Critical path items continued during the assessment period, including engineering, off site abrication, procurement activities and site based civil works. An alternative concentrate transportation option utilising Fortescue's existing rail and inload port infrastructure was also considered, with modelling indicating a higher relative cost of production and higher total capital cost when considering the modifications required to Fortescue's existing infrastructure. Capital cost: Reflecting the outcome of the assessment, the Iron Bridge capital estimate is revised to USD 3.3 - USD 3.5 billion, including FMG Iron Bridge Ltd.'s share of USD 2.5 - USD 2.7 billion. The revised estimate is subject to Iron Bridge Joint Venture approval. The project includes: 22mtpa Ore Processing Facility (OPF) - 195km Canning Basin water pipeline - 135km concentrate pipeline to Port Hedland and return water pipeline - Concentrate handling facility at Port Hedland - Initial mining fleet - Non-processing infrastructure. Is New 90 Day High Low • Mar 11
New 90-day low: AU$20.41 The company is down 11% from its price of AU$23.05 on 11 December 2020. The Australian market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$15.70 per share. Reported Earnings • Feb 20
First half 2021 earnings released: EPS US$1.33 (vs US$0.80 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: US$9.34b (up 44% from 1H 2020). Net income: US$4.08b (up 67% from 1H 2020). Profit margin: 44% (up from 38% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 20
Revenue misses expectations Revenue missed analyst estimates by 0.2%. Over the next year, revenue is forecast to grow 7.5%, compared to a 136% growth forecast for the Metals and Mining industry in Australia. Announcement • Feb 16
Fortescue Metals Group Limited Announces Leadership Changes Fortescue Metals Group Limited Announced that Greg Lilleyman, Chief Operating Officer, has resigned from his position, with immediate effect. Don Hyma, Director Projects and Manie McDonald, Director Iron Bridge have also resigned from the business. Derek Brown, currently General Manager Solomon has been appointed as Acting Director Projects with the support of Fortescue's senior Projects team. Executive Departure • Feb 16
Chief Operating Officer has left the company On the 16th of February, Greg Lilleyman's tenure as Chief Operating Officer ended after 3.0 years in the role. As of December 2020, Greg personally held 424.70k shares (AU$10m worth at the time). A total of 2 executives have left over the last 12 months. Is New 90 Day High Low • Jan 07
New 90-day high: AU$25.92 The company is up 52% from its price of AU$17.02 on 09 October 2020. The Australian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$19.23 per share. Is New 90 Day High Low • Dec 21
New 90-day high: AU$24.06 The company is up 50% from its price of AU$16.04 on 23 September 2020. The Australian market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$13.64 per share. Valuation Update With 7 Day Price Move • Dec 08
Market bids up stock over the past week After last week's 16% share price gain to US$21.36, the stock is trading at a trailing P/E ratio of 10.4x, up from the previous P/E ratio of 8.9x. This compares to an average P/E of 12x in the Metals and Mining industry in Australia. Total returns to shareholders over the past three years are 533%. Is New 90 Day High Low • Dec 04
New 90-day high: AU$20.65 The company is up 18% from its price of AU$17.51 on 04 September 2020. The Australian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$12.69 per share. Announcement • Aug 24
Fortescue Metals Group Limited to Report First Half, 2021 Results on Feb 17, 2021 Fortescue Metals Group Limited announced that they will report first half, 2021 results on Feb 17, 2021 