Fortescue Metals Group Posted Production Report For December 2018 Quarter: What Market Players Need oT Know

Fortescue Metals Group Posted Production Report For December 2018 Quarter: What Market Players Need oT Know

Fortescue Metals Group (ASX: FMG) had come forward and made an announcement with respect to the production report of December 2018 quarter with the help of the press release. Mr. Andrew Forrest AO is the Chairman of Fortescue Metals Group while Ms. Elizabeth Gaines is the company’s Chief Executive Officer. 

As per the release dated January 31, 2019, Fortescue Metals Group had witnessed total shipments of 42.5 million tonnes (or mt) while the company’s cash production costs (or C1) stood at US$13.02 per wmt (wet metric tonne). As depicted by the company’s production report, the quarterly results reflect the capability of the operations of the company to garner robust cash flows with the help of product strategy execution. As a result, the company witnessed low-cost performance as well as increased realized prices.

We would now have a look at the viewpoints of the company’s management. According to the release issued by Fortescue Metals Group, the top management of the company reflected favourable views with respect to the results for the December 2018 quarter. The company’s CEO (or Chief Executive Officer) stated that the company witnessed total shipments of 82.7 mt in the H1 FY 2019. The CEO also added that the company’s average realized price witnessed the rise of 7% in the December 2018 quarter and stood at US$48/dmt. This metric along with the lower cash production costs have supported the company to generate robust cash flows. The issued release also gave information about the shareholders’ returns as well as shares acquisition. At the of December 2018 quarter, the company’s gross debt was US$4 billion, and the net debt stood at US$3 billion. The company stated that its total capital expenditure (or CAPEX) for the December 2018 quarter stood at US$254 million.

As per Fortescue Metals Group’s release, in the December 2018 quarter, the company had given significant shareholder returns with the help of payment of FY 2018 final dividend amounting to US$270 million as well as the shares acquisition (on market) for the consideration amounting to US$101 million. Amidst all these, the company had managed to end the December 2018 quarter by having the cash balance amounting to US$962 million. We would be looking at the how Fortescue Metals Group’s stock has performed today, and this stock has been performing from the past few months.

On January 31, 2019, Fortescue Metals Group ended the session in green as the stock price witnessed an upward momentum. The company’s stock closed at A$5.650 per share which implies the rise of A$0.230 per share or 4.244%. The market capitalization of Fortescue Metals Group stood at ~$16.69 billion. Talking about the past performance, the company’s stock has delivered the return of 24.31% in the span of previous 6 months while, in the time frame of 3 months, it had delivered 33.50% return. However, in the previous one month, Fortescue Metals Group’s stock posted the return of 29.36%. Fortescue Metals Group’s annual dividend yield stood at 4.24%.


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